Vero Beach Real Estate Information

Annual Forecast from National Association of Realtors

Real Estate – Time to Buy? Sell? Hold?

May 21, 2020
by Lil Miller-Fox | In The News


As a lover of real estate and local investor, I’m watching the market closely to figure out how COVID-19 will impact home prices and sales. 
 

Last week Lawrence Yun, chief economist for the National Association of Realtors, presented at the Residential Economic Issues & Trends Forum.   Yun participates in many economic forecasting panels including the Harvard University Industrial Economist Council.   
 

Here are three takeaways from Yun’s residential market update:
 

#1       Record Low Mortgage Rates = Peace of Mind

While home prices may seem high right now, low mortgage rates offer almost free money.  Buying a home at rock bottom rates gives families peace of mind knowing that their monthly mortgage payment is manageable, fixed and will not change when inflation sets in.  
 

#2       Home Prices Holding Up -  Slight Declines in 2020

Yun notes “there is no meaningful downward trend (in home prices).”  He forecasts a 0% to 2% price decline in 2020 before increasing 1% to 3% in 2021. 

A recent Zillow study forecasts 2% to 3% drop in 2020 home prices before rising slightly in 2021. 
 

#3       No Inflation Worries…. For Now

The largest stimulus package, economic rescue & tax breaks signal the government is all in.  Yun says there’s “no concern over inflation which means the Federal Reserve can be accommodative for a long time.” 

According to Yun, inflation will hit in 5 to 7 years and home prices will rise along with the price of everything else in our daily lives.  “Everything will be rising, rising, rising,” says Yun.


 

About Elisabeth (Lil) Miller-Fox
Member of the National Association of Real Estate Editors, Miller-Fox was VP of Marketing at John's Island, Orchid Island Golf & Beach Club and Windsor before co-founding PrivateCommunities Registry, Inc. in 1996.  Miller-Fox invests in residential real estate in the local Vero Beach & Sebastian market.

SLIDES from Residential Economic Issues and Trends Forum


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