The real estate market has been thriving in recent years, however even with a strong economy, there are concerns a recession may be around the corner. Many wonder what effect the economy will have on the real estate market.
To address these questions, The National Association of REALTORS (NAR) held its inaugural Real Estate Forecast Summit on December 11th. Sixteen different economists were invited to share their forecasts and insights for the upcoming year.
One of the most discussed topics was the possibility of a recession in the short-term. The economists on the panel predicted a relatively low chance of 29% when their individual predictions were averaged together.
Another topic discussed at the summit included the increasing home affordability gap across the country. Edward Pinto, resident fellow and director at the AEI Housing Center of the American Enterprise Institute said, “We see a much higher increase at the low-end and it is far outstripping the wage increases at the entry level”. This has been a concern especially in metro areas along the Pacific Coast and Northwest corridor.
According to NAR’s Chief economist, Lawrence Yun, economists agreed that the markets that are expected to perform the best shared the following strengths:
Domestic migration into the area
Housing affordability for new resident
Consistent job growth outperforming the national average
Age structure of the population
Attractiveness for retirees
Home price appreciation
Lastly, the summit touched on what can be expected from the market in general. The following predictions are based on the averages of the responses of all of the economists:
Mortgage rates will rise incrementally, possibly hitting 4% in 2020
60,000 more housing starts in 2021
Slower price appreciation that is more manageable and more closely in line with income growth
Rents expected to rise a little faster than home prices
How to Stick With Your New Years Resolution
The beginning of the year is often marked with people setting resolutions for the year ahead. Resolutions can span topics from health and wellness, to relationship and work goals. Research shows that approximately 80% of Americans make a New Year’s Resolution. It also shows that only about 8% of those same people are able to stick with their resolutions! So what can you do to increase your odds of success? The American Psychological Association offers several tips to help you out this year.
Start small with resolutions you can keep
Change one behavior at a time
Talk about your goals with friends and family
Don’t beat yourself up if you make a mistake
Ask for support when you need it
The Wilson Group’s own Christie Wilson was featured in a Fortune, Entrepeneur, & Bloomberg Businessweek article! Enjoy reading the article in the link below.