2020 has been full of twists and turns! All the uncertainty may have you wondering how the pandemic and the economy have impacted the housing market in Texas 2020. It may surprise you to know that home sales and home values are actually on the rise – due in part to the fact that mortgage interest rates are at all-time lows, and expected to remain there.
2020 Housing Market Predictions
In terms of 2020 housing market predictions, at the beginning of the year, many experts thought that the coronavirus would drive new home prices lower. Recent data, however, shows their prediction was incorrect. Matthew Speakman, an economist at Zillow, was quoted as saying, “The coronavirus pandemic has generated any number of nasty surprises over the past few months, but the unexpected strength in April new-home sales may be the first pleasant surprise, and the clearest indicator that housing will be a source of relative strength during this downturn.”
Many experts had predicted that new home sales would weaken in 2020. However, according to the U.S. Census Bureau, sales of new homes actually increased 1% in Aril of 2020. Nationally, home values rose 4.4% in March of 2020, despite predictions that the pandemic would cause prices to trend downward.
To give you an idea of how the increase in home prices compares to historic numbers, from 1987 to the end of 2019, home prices nationally increased at about 3.4% annually. CoreLogic, a data reporting analysis company, has predicted that home prices will increase 4.8% in all of 2020.
Keep in mind that these are national statistics, and trends for new homes for sale Leander Tx may differ. That being said, Realtor.com reports that the median list price of houses for sale in Leander Tx was $335k in May 2020, which is an increase of 4.3% year over year.
What will interest rates do in 2020?
The number of applications for mortgages has skyrocketed recently, thanks to some of the lowest interest rates we’ve seen in years.
According to a survey released by Freddie Mac on May 28, 2020, the average rate for a 30-year fixed rate mortgage was a record-low 3.15%. This is the lowest rate reported since Freddie Mac began tracking mortgage rates almost 50 years ago, and surpasses the previous historic low of 3.23% set the previous month, in April of 2020. The 30-year fixed rate has set new lows three times in just the past few months.
69% of economists attending the National Association of Realtors 2020 Real Estate Forecast Summit predicted no change in the federal funds rate for 2020, meaning mortgage rates are likely to remain steady. There was, however, some fluctuation as the economy stalled during measures to stop the spread of COVID-19.
“While interest rates are expected to remain below 4% in 2020,” said Daniela Andreevska, an economist at Mashvisor, a real estate data analytics company, “it’s still too early to say what will happen in 2021.”
More people are buying homes!
According to a report by the Mortgage Bankers Association published May 13, 2020, applications for mortgages to purchase homes increased for the fourth consecutive week.
“There continues to be a stark recovery in purchase applications, as most large states saw increases in activity last week,” said Joel Kan, an MBA associate vice president. “We expect this positive purchase trend to continue – at varying rates across the country – as states gradually loosen social distancing measures, and some of the pent-up demand for housing returns in what is typically the final weeks of the spring homebuying season,” Kan said.
The MBA’s Market Composite Index, a measure of all mortgage loan application volume, increased 0.3% on a seasonally adjusted basis from one week earlier.
Increases in mortgage loan applications are happening despite record high unemployment numbers in the U.S. The U.S. unemployment rate in April spiked to a record high of 14.7%, more than tripling from March, according to the U.S. Labor Department.
The share of applications for mortgages backed by the Federal Housing Administration increased to 11.5% from 11.1% a week earlier, the report said. The share for home loans backed by the Veterans Administration rose to 13.7% from 13.3%.
Consider new homes for sale in Leander Tx
Let’s face it – spending more time at home has many people reevaluating their living situation. Some want more space, others want bigger yards or access to amenities closer to their front door.
Prices for houses for sale in Leander Tx at Deerbrooke start in the $250s. Our builders include Perry Homes, Monticello Homes, Gehan Homes and Sitterle Homes.
Since 1967, Perry Homes has built gorgeous houses with a timeless appeal ensuring their customers’ investment for decades to come. Perry designs are earth-friendly & energy efficient, so you save your money and your conscience. Check out their model home at 1009 Deer Rim Road in Leander.
Monticello Homes’ customers are true originals, and their houses are, too. Monticello’s superior craftsmanship and interior design have been recognized throughout Texas. Come by their model home at 2401 Fallshire Court in Leander.
For over 25 years, Gehan Homes has been building outstanding floor plans, providing superb design and leading the industry in customer service all over the country. Now at Deerbrooke, Gehan brings you the home you’ve been dreaming of. Their model home is currently under construction.
Award-winning Sitterle Homes has a passion for beautiful residences that are passed from generation to generation. With over 50 years of experience, Sitterle Homes are built to last. Stop by their model home at 2400 Fallshire Court in Leander.
Schedule your visit of Deerbrooke!
Our model homes are currently open for walk-in visits, however, to do our part in curbing the spread of COVID 19, and to keep our team and our customers safe, we encourage anyone who wants to tour one of our model homes to set up a private appointment with the builder. You can also contact us directly at 512-387-8632 or email@example.com.