Real estate is poised to lead our nation’s economic recovery. Here’s why.
As the American economy goes, so does the world economy. As states start to re-open, the big question is: “Which sectors of the economy will drive its recovery?”
Robert Dietz, chief economist for the National Association of Home Builders, explained in an update last week: “As the economy begins to recover late in 2020, we expect housing to play a leading role. Housing entered the recession underbuilt not overbuilt.”
Based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to 1 million units. What does this mean for Miami, Doral, and other local areas? Numbers don’t lie, emotions do. So we should focus on real facts based on data:
In April, single-family home sales fell by 31.6% year over year to 865 closings. Condo sales declined by nearly 48% to 711 closings. The median price of single-family homes increased by 7.3% to $382,000 while condo prices increased by 6.9% to $265,000. Mortgage rates are really low and are expected to remain low. They will be a key factor in driving demand as the state economy reopens.
We should focus on real facts based on data.
In conclusion, while the number of sales is down from last year, housing prices remain stable and are even growing. If you've been thinking of selling your home, now is a great time. If you’re thinking of buying, low rates make it a great time for that, too.
If you have any real estate-related questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you.