A picture is worth a thousand words and today I am sharing two pictures – TWO thousand words! There is so much going on in our country – worldwide, actually if you really think about it. 2020 has not been a particularly fun year and honestly, I’m not sure when it will get much better. But – we are HERE, we are LIVING, and there is some really great stuff happening too.
I won’t take too much of your time today, but in order to provide some factual support for what I’ve been saying for the last six weeks about how GOOD the real estate market is, I want to share with you what the financial experts told us was going to happen during the second quarter. You really only have to glance at the chart sideways once to see that it’s all red. On average, the financial institutions that we trust, predicted that we’d see a 30.8% drop in our GDP in the second quarter of 2020. Guess what – they were pretty much spot on – our GDP dropped by 32.9% during April, May and June.
Let’s take a look at the next chart – I don’t see any RED, do you?
They were right about Q2, do you think they’ll be right about Q3? I’m not a big gambler (okay, so maybe you do know that I love to go to Atlantic City once in a while – but you can forget that for this post!)… when it comes to my livelihood or my kids college tuition, I’m pretty conservative. I’m betting the farm on what these NINE financial institutions are predicting for the 3rd quarter.
A few other things I know to be true right now, that will still be true in the fourth quarter and at the pace of this pandemic, probably well into next year: HOME means something more now that it ever has before. No longer is it simply a place to rest your head, a place to raise your family, entertain friends, and a place to feel safe. Now it is also your office, your vacation, it’s your kids’ school. It’s also still a place to rest your head and a place to feel safe: but maybe you need more space or different space. Maybe you are tired of the city or you want more yard, or a pool… With interest rates at an all time low, inventory levels incredibly low and the fact just over 40% of all homes are owned outright – no mortgage and almost 30% of people who do have mortgages have over 40% equity – – we aren’t looking at a bubble, we aren’t looking at a crash, there will likely not be crazy high numbers of foreclosures or short sales. The real estate market is holding on! One more visual for you – from Freddie Mac:
Interested in what all of this might mean for you? Contact us for a no obligation consultation – we can help you plan for the future of your housing needs!