Marco Santarelli, Author at Norada Real Estate Funding

US Housing Market Forecast 2020 & 2021: No Crash Impending!

November 2, 2020 by Marco Santarelli

Here are the updated housing market trends & predictions for 2020 & 2021. As of now, the housing market remains a hot seller's real estate market, with annual price growth reaching record highs and inventory continuing to fall. But Realtor's latest recovery trends point towards more balanced conditions. The demand has softened up as compared to previous weeks and the supply saw the largest improvement since March.

Whether it will cool off with a sharp decrease in the pace of price growth can only be seen in 2021. As of now record-low mortgage rates and shortage of inventory have kept the US housing market strong with respect to buyer demand. Strong housing demand pushed by the pandemic is driving prices insane in 2020. Both prices and sales are surging month-over-month breaking new records.

In the article, you'll find how the US housing market is recovering week after week from the blows of the pandemic. New home sales have also risen during the pandemic and existing home sales are at a 1-year high. The real estate sector has also been highly supportive of the economic recovery of the country so far. As prices keep climbing month-over-month, it just shows the resilience of the US housing market in 2020 in the face of an ongoing economic recession.

Let’s first look at the negative housing forecast for 2021 and its reasoning. The current short-term demand that is reflected in sharply rising prices, can be attributed to the pent-up demand for home purchases from the March-July period when a great part of the country was in total lockdown. The housing sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand.

This strong buyer activity points to a fall & winter housing market that is more active than normal, where buyers may face more competition and may have to act more quickly than usual to snag their dream home. In the winter season, the sales and prices will continue to rise but at a slower pace. The housing demand is still strong but it has shown some early signs of softening up.

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San Diego Real Estate Market And Investment Overview

November 1, 2020 by Marco Santarelli

Home prices & sales are rising across the Southern California housing market and San Diego is no exception. The fallout from the pandemic led to a slump in sales in the spring and early summer buying season. But that has now led to a pent-up demand causing unusual sales growth in the fall season.

San Diego area is a strong seller’s real estate market. Mortgage interest rates are so low that buyers can afford more than they thought. Inventory is low, prices are rising, and pent-up demand alongside low mortgage rates has the San Diego housing market flooded with homebuyers.

The forecast for 2021 is that the shortage of supply and an increase in the demand for housing will push the prices higher in the next twelve months. For sellers, now is the opportune time to put their San Diego home up for sale. The pricing of homes is trending higher and is more attractive for sellers in the current phase.

In September 2020, sales of single-family homes in San Diego County increased by a whopping 32.8% y-o-y, affirming that there is a strong demand among homebuyers in the area. Closed sales also took a jump of 7.5% from August. Pending sales have also increased over the last 4 months. The median sales price increased by 15.4% YTY and 0.3% MTM.

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Phoenix Real Estate Market & Investment Overview

November 1, 2020 by Marco Santarelli

The buyer demand refuses to die down in the Phoenix housing market. Despite the large increase in new listings in September, the available supply of properties is not increasing. It was quite unusual for the number of listings under contract to be higher on October 1 than September 1, but this what the pandemic has done in 2020. The Greater Phoenix real estate market is on fire. The fall season has become as busy for home buying as the summer season.

It is now clear that the pandemic could only pause sales, which in turn created a huge pent up demand. As we saw Arizona real estate market thriving & becoming sizzling hot in the past couple of years, even the rise in mortgage rates was believed not to affect it. Now record low-interest rates are helping boost sales, and it's still a strong seller's market.

The slump in year-over-year sales in April and May impacted the numbers, but the anomaly will most likely be fully erased in October, according to ARMLS's forecast. The Phoenix real estate market has not only recovered after a slump due to COVID-19 but the demand has reached new heights. September recorded the highest median sales price ever reported, the highest average sales price ever reported and the highest sales volume for any September in the past.

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New York Real Estate Market: Prices & Updated Forecast

October 30, 2020 by Marco Santarelli

We'll be discussing the current state of the NYC real estate market, and also for the state of New York. As New York continues to fight the pandemic, Governor Cuomo has extended the state’s moratorium on COVID-related residential property evictions until January 1, 2021, through Executive Order. Additionally, previous Executive Orders have prohibited charges or fees for late rent payments, and tenants facing financial hardship can still use their security deposit as payment and repay their security deposit over time.

The New York real estate market (statewide) continued to be hot in September 2020 with both sales and prices increasing by double digits as compared to last year. The closed sales in September increased by 12.2% (YTY) while pending sales surged by +49.3%.

However, due to extreme disruptions caused by the pandemic, year-to-date sales (closed) are still behind last year by 11.6%. The statewide median sold price in New York climbed increased by 17.5% (YTY) to $324,900. The average sold price also jumped by double-digits (+ 18.2%) to $432,547. The price growth can be attributed to stronger buyer activity and an insufficient amount of homes available for sale.

On the other hand, the New York City housing prices trends have shifted from their normal course of trending up. After remaining firmly steady throughout the pandemic, July presented a whole new picture. July’s $680,000 median sale price represented a 13% year-over-year drop, according to PropertyShark.com.

This trend followed in August as well. August 2020 was marked by the lowest median sale price of the year and sales dropped 19% below July levels. The prices plunged again, from $680,000 to $665,000, declining 2% as compared to July and 1% as compared to last year. Real estate sales across the four boroughs of NYC were down 45% compared to last year's August, representing the sharpest year-over-year rate of contraction in three months. [Read more…]

Los Angeles Real Estate Market & Investment Overview

October 29, 2020 by Marco Santarelli

We will discuss the latest Los Angeles housing market prices and trends. Due to coronavirus home sales dropped over the past couple of months but prices remained high and in June, we saw the first rebound in home sales. In September, all the six counties of the Southern California houisng market saw an increase in sales as compared to the previous year, with Los Angeles county recording a YTY sales growth of 16.4%.

The Metro Los Angeles housing market posted a year-over-year increase of 23.2% in single-family home sales. Compared to August 2020, sales increased by 5.8%. The median home price of the Los Angeles metropolitan region rose to $630,000, up 15.6% from last year. Compared to August 2020, the median price increased by 2.4%.

The rise in home prices and sales have shifted the market conditions to a balanced one. The inventory still remains tight. The Unsold Inventory in Los Angeles Metro Area is 2.2 months.

The September 2020 report by Realtor.com also shows that Los Angeles is a balanced real estate market, which means there is a healthy balance of buyers and sellers in the market. The low inventory level seemed to have equaled the low buyer turnout keeping the market temperature neutral — Sale-to-List Price Ratio: 100%.

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