It is a difficult time to project the future state of the economy. Currently, economists are talking about the probability of a double dip recession. However, the markets seem to be telling a different story with major indices at or near all-time highs. Consumption rebounded slightly due to stimulus checks. I have always said consumption alone can’t sustain economic growth, but it can cause a recession.
The housing market is much like the broader economy currently. Existing home sales volume is at historic highs, and the available inventory is at a current low point according to economic data from the St. Louis Federal Reserve. Mortgage rates remain at all-time lows. This reflects what we are seeing locally, with the days on market down for houses priced appropriately.
However, like the economy, the housing market is in a precarious position. One troubling indicator is the median sales price has declined from the previous quarter. Politics has also taken a toll on hopes for a second stimulus. The number of people deferring mortgage payments and entering into forbearance increases with each passing day. Eventually government protections will end, resulting in short sales and foreclosures. This will drive housing prices down further and increase inventory.
The good news is, the housing market is undeniably hot right now. If you are thinking of selling, now is the time. However, the window is closing and there is a great deal of uncertainty ahead, so call me for a market analysis. 770-609-4842 or visit my website firstname.lastname@example.org.