You know what? They are expected to be. It's not a newspaper article! Anytime I hear sales data in a format that compares one month of sales to the previous month, I get a little suspicious and you ought to too - how to become a commercial real estate agent. A better procedure is to look at present sales in a month vs the exact same month one year previously because it represents the genuine estate sales cycle.
Rather, We would compare June with the previous June. Or the last 3 months with one year to one year and 3 months back. This provides us much better data to examine what's actually taking place. No one should be surprised that November sales are lower than October sales or that January is slower than December.
I would again suggest you consult a local real estate expert to see what's actually going on. what is a real estate appraiser. Let me provide you an example: The Atlanta real estate market sales cycle appears like what you see here in this graph. Slow at the beginning of the year and gets in March through June-July and decreases through November and chooses up in December and slows in January.
It does this every year. Picture if I attempted to tell you the market was going to crash since sales were below July to August to September. It's missing the needed context that it does this every year and it is anticipated and it does not suggest there is a problem or even a change in what is anticipated in the market! With that in mind, here's some actual property data that reveals there's no pattern of negative sales on stats that in fact matter here in the Atlanta genuine estate market: There Click here were 7,201 sold houses in December 2020.
That's really a 10% boost in sales year over year and certainly not a slowdown. Sales are a lagging indicator and so to look ahead we can utilize the leading sign of pending sales. December 2020 is the last complete month of data and we see that in December of 2020 there were 5,650 pending sales and in 2019 there were 4,638.
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8% increase in pending sales compared to what happened the previous year so it does not look like we are heading for that slowdown we heard about from leading indications either. Different regions run in different cycles. Warmer climates may have more sales in the winter months compared to colder environments.
Rates of interest will have to increase at some point as the economy opens up and we begin to see genuine economic development. It's going to occur at some point for sure. Freddie Mac suggests it will not occur prematurely though saying: "This low home mortgage rates of interest environment is predicted to continue through 2021 and 2022 as the Federal Reserve has actually voted to keep the rate of interest anchored near no for a longer time period if required until the economy rebounds.
8% in the fourth quarter of 2020, it is forecasted to average around 2. 9% through completion of 2021." It's real that eventually, more stock will come into the market also which will help bring a little better balance to the marketplace however it's going to take a great deal of stock for that to occur.
It's an inventory crisis and it's too low. It's so low that stock could triple and we would still remain in a seller's market here in Atlanta and as long as rates do not double at the exact same time it's challenging to think of a circumstance that would see costs decrease let alone crash.
Simply ask any buyer defending a home right now. Possibly the guidance regarding what we hear on the news is this: when we look for property info, the news media can't be your only source. Specifically in the world we reside in today where headlines frequently do not even match the stories and those headings are typically created simply for clickbait and to sell advertisements.
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Even when a newspaper article interviews a professional on a news program, they've typically looked for out an "expert" that currently fits the narrative for their "news" story - how do real estate agents get paid. With that in mind, as we move into the new year with the election behind us, the vaccine being distributed, and the economy poised to rebound, it's my viewpoint that there will be no housing crash in 2021 and probably not at all even farther out into the future.
In the midst of a raving COVID-19 pandemic, with millions of Americans still out of work and facing the possibility of eviction and foreclosure, the United States is experiencing a genuine estate boom the similarity which it hasn't seen in 15 years. Home prices are rising practically everywhere. From Augusta, Maine, to Phoenix and from Sarasota, Florida, to Aberdeen, Washington, prices are up by double digits.
Products of existing homes have diminished far below the six-month level thought about regular. Realtors http://travisoawc280.trexgame.net/unknown-facts-about-what-is-a-real-estate-developer are getting several offers. Contractors can't keep up with need and turning is back. Talk of a housing bubble is now common among experts including those at Swiss banking giant UBS, who back up their claims with charts demonstrating how house costs are outstripping both incomes and rents.
The outcome: House are out of grab increasingly more buyers every year, the analysts argue. But unlike the realty boom that caused the Fantastic Economic downturn, this nationwide price spike is not being sustained by a wholesale collapse in lending institution principles. There aren't any low-doc or no-doc loans to be had and debtors are needing to do much more than fog a mirror to get funding.
" We need 1. 62 million systems a year to keep pace with organic need, but here we produce considerably less. We have to do with 370,000 units short each year." Marco Santarelli, founder and CEO, of Norada Realty Investments. CourtesySantarelli included that the supply imbalance will only become worse as more than 140 million millennials and members of Gen Z move into rental units and starter houses in the years ahead.
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" That's the highest rate in over 110 years. These people need to go somewhere and that's why I'm so bullish about property over the long term." (how to invest in commercial real estate). But these healthy principles don't suggest there aren't worrying distortions in the market. With the Federal Reserve continuing to purchase Treasury bonds and other securities under its quantitative easing program, interest rates are being held synthetically low as dollars are being pumped into the economy.
Up Until the Federal Reserve halts its bond purchasing and rates of interest begin to increase once again, genuine estate rates will continue to climb up, says Robert Goldman, a property representative with Michael Saunders & Co. in Sarasota. And no modification in policy is anticipated whenever quickly." The Fed will keep purchasing bonds far into the future regardless of what could be a thriving economy in 2021 and 2022," Goldman said in his regular monthly newsletter." We had a 10.