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What are Future Home Prices Going to Look Like? Experts Have Some Answers. A worldwide pandemic and an economic recession have had a tremendous effect on the nation. The uncertainty brought about by both has made predicting consumer behavior nearly impossible. For that reason, forecasting home prices has become extremely difficult. Normally, there’s a simple formula to determine the future price of any item: calculate the supply of that item in ratio to the demand for that item. In housing right now, demand far exceeds supply. Mortgage applications to buy a home just rose to the  highest level in 11 years  while inventory of homes for sale is at (or near) an all-time low. That would usually indicate strong appreciation for home values as we move throughout the year. Some experts, however, are not convinced the current rush of purchasers is sustainable. Ralph McLaughlin,  Chief Economist  at  Haus , explained in their  June 2020 Hausing Market Forecast  why there is con
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The Summer Housing Market is on its Way. Are You Ready?

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As the health crisis started making its way throughout our country earlier this spring, sellers have been cautious about putting their homes on the market. This hesitation stemmed primarily from fear of the spread of the coronavirus, and understandably so. This abundant caution has greatly impacted the number of homes for sale and slowed the pace of a typically busy spring real estate season. Mark Fleming,  Chief Economist  at  First American   notes : “As more homeowners are reluctant to list their homes for sale amid the pandemic, the supply of homes available to potential home buyers continues to dwindle.” With many states beginning a phased approach to reopening,  virtual  best practices and health and safety  guidelines  for the industry are in place to increase the comfort level of buyers and sellers. What we see today, though, is that sellers are still making a very calculated return to the market. In their latest  Weekly Housing Trends Report, realtor.com  indicates
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Economists Predict Recovery Will Begin in the 3rd Quarter

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With the U.S. economy on everyone’s minds right now, questions about the country’s financial outlook continue to come up daily. The one that seems to keep rising to the top is: when will the economy begin to recover ? While no one knows exactly how a rebound will play out, expert economists around the country are becoming more aligned on when the recovery will begin. According to the latest Wall Street Journal Economic Forecasting Survey , which polls more than 60 economists on a monthly basis, 85.3% believe a recovery will begin in the second half of 2020 (see graph below): There seems to be a growing consensus among these experts that the second half of this year will be the start of a turnaround in this country. Chris Hyzy, Chief Investment Officer for Merrill notes : “We fully expect the economy could begin to pick up in late June and July with a strong recovery in the fourth quarter.”  Also, five of the major financial institutions are also forecasting positive GD
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Equity Gain Growing in Nearly Every State

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  Rising home prices have been in the news a lot lately, and much of the focus is on whether they’re accelerating too quickly and how sustainable the growth in prices really is. One of the often-overlooked benefits of rising prices, however, is the impact they have on a homeowner’s equity position. Home equity is defined as the difference between a home’s fair market value and the outstanding balance of all liens on the property. While homeowners pay down their mortgages, the amount of equity they have in their homes climbs each time the value increases. Today, the number of homeowners that currently have significant equity in their homes is growing. According to the Census Bureau , 38% of all homes in the country are mortgage-free.  In a home equity study , ATTOM Data Solutions revealed that of the 54.5 million homes with a mortgage, 26.7% of them have at least 50% equity. That number has been increasing over the last eight years. CoreLogic also notes: “…the ave
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Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey

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When the number of buyers in the housing market outnumbers  the number of homes for sale , it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes – unless they stand out from the crowd . Here are three reasons why pre-approval should be your first step in the homebuying process. 1. Gain a Competitive Advantage Low inventory , like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the sellers you’re serious about buying a home, which is always a plus in your corner. 2. Accelerate the Homebuying Process Pre-approval can also speed up
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