2020 Real Estate Projections

This will be an interesting year for residential real estate. With a presidential election taking place this fall and talk of a possible recession occurring before the end of the year, predicting what will happen in the 2020 U.S. housing market can be challenging. As a result, taking a look at the combined projections from the most trusted entities in the industry when it comes to mortgage rates, home sales, and home prices is incredibly valuable – and they may surprise you.

Mortgage Rates

Projections from the experts at the National Association of Realtors (NAR), the Mortgage Bankers Association (MBA), Fannie Mae, and Freddie Mac all forecast mortgage rates remaining stable throughout 2020:

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Since rates have remained under 5% for the last decade, we may not fully realize the opportunity we have right now.

Here are the average mortgage interest rates over the last several decades:

  • 1970s: 8.86%
  • 1980s: 12.70%
  • 1990s: 8.12%
  • 2000s: 6.29%

Home Sales

Three of the four expert groups noted above also predict an increase in home sales in 2020, and the fourth sees the transaction number remaining stable:

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With mortgage rates remaining near all-time lows, demand should not be a challenge. The lack of available inventory, however, may moderate the increase in sales.

Home Prices

Below are the projections from six different expert entities that look closely at home values: CoreLogic, Fannie Mae, Ivy Zelman’s “Z Report”, the National Association of Realtors (NAR), Freddie Mac, and the Mortgage Bankers Association (MBA).Each group has home values continuing to improve through 2020, with four of them seeing price appreciation increasing at a greater pace than it did in 2019.

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Is a Recession Possible?

In early 2019, a large percentage of economists began predicting a recession may occur in 2020. In addition, a recent survey of potential home purchasers showed that over 50% agreed it would occur this year. The economy, however, remained strong in the fourth quarter, and that has caused many to rethink the possibility.

For example, Goldman Sachs, in their 2020 U.S. Outlook, explained:

“Markets sounded the recession alarm this year, and the average forecaster now sees a 33% chance of recession over the next year. In contrast, our new recession model suggests just a 20% probability. Despite the record age of the expansion, the usual late-cycle problems—inflationary overheating and financial imbalances—do not look threatening.”

Bottom Line

Mortgage rates are projected to remain under 4%, causing sales to increase in 2020. With growing demand and a limited supply of inventory, prices will continue to appreciate, while the threat of an impending recession seems to be softening. It looks like 2020 may be a solid year for the real estate market.

**Information provided by Keeping Matters, click here for more.

202 Pitt Street- Available For Purchase for the First Time in over 50 Years!

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HOME IS AVAILABLE FOR $2,150,000

Circa 1892, this home has withstood the test of time and is now available for purchase for the first time in over 50 years!  Known as the Hale-Seabrook house, 202 Pitt Street in one of the Old Village’s most recognizable homes.  The dignified 4400 square foot estate is a blend of old and new, and is located just steps from the Pitt Street Shopping district.  No historical feature has been removed.

Built by lumberman Harry Hale in 1892 the home was later sold to John G. Seabrook, who recognized its superior quality and vast potential.  Mr. Seabrook hired a master carpenter and contractor to renovate the home, which was lifted and repositioned to face Pitt Street.  Creating the home’s grand style, he also added the beautiful brick-lined walkway and portico, flanked by four dramatic two-story columns (which were reclaimed from a mill in Marion, SC) topped with a stunning entryway door with curved transom and sidelights.  The home has been lovingly maintained and was renovated in 2005 (kitchen/ den, etc) to reflect a modern feel while maintaining the architectural history.

The traditional floor plan features a formal living room, formal dining room, updated kitchen, adjoining den, and guest bedroom on the first floor.  The remaining 3 bedrooms are located upstairs, including the master suite and deck overlooking Pitt Street.  There is also a finished basement with a second kitchen, built in bar plus garage doors leading to an outdoor kitchen- perfect for entertaining.  You will love the traditional antique heart pine flooring, original clear cypress walls, classic crown molding, 10 foot ceilings and more!

202 PItt Street is listed for $2,150,000 by Jackie Kelly, REALTOR® with The Cassina Group.  For more details, contact Jackie@TheCassinaGroup.com or visit www.SearchOldVillage.com.

 

 

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Charleston Market To Outpace Averages

Economists Expect the Charleston Real Estate Market to Outpace National Averages Through 2025

CHARLESTON, SC—(December 11, 2019) The National Association of Realtors® (NAR) identified 10 markets expected to outperform over the next three to five years. In alphabetical order, the markets are:
• Charleston, South Carolina
• Charlotte, North Carolina
• Colorado Springs, Colorado
• Columbus, Ohio
• Dallas-Fort Worth, Texas
• Fort Collins, Colorado
• Las Vegas, Nevada
• Ogden, Utah
• Raleigh-Durham-Chapel Hill, North Carolina
• Tampa-St. Petersburg, Florida
“Some markets are clearly positioned for exceptional longer term performance due to their relative housing affordability combined with solid local economic expansion,” said NAR’s Chief Economist Lawrence Yun. “Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply.”
NAR identified the top 10 metro areas based on domestic migration, housing affordability for new residents, consistent job growth relative to the national average, population age structure, attractiveness for retirees and home price appreciation, among other variables. As an indicator of strong housing demand in these markets in the past three years, home prices in these 10 metro areas have increased annually by at least 7%.
1,332 homes sold in November in the Charleston region at a median price of $268,000 according to preliminary data released today by the Charleston Trident Association of Realtors® (CTAR). Last November, 1,301 homes sold at a median price of $268,453.
This year’s 17,010 closings show transactions up almost 1% and median price up 5%, to $277,900 for the region.

There are 17% fewer homes for sale than at this point last year, with 5,265 homes listed as “active” for sale in the CHS Regional MLS database at the end of November.

Newly installed 2020 CTAR President Bobette Fisher said, “The economists’ expectation for Charleston to continue outperforming other markets is a tremendous recognition for our region—we have been enjoying many years of economic expansion and growth, with new people moving to our area every day and keeping Charleston a growing, vibrant community. However, affordability and sustainability remain the chief concerns for our growing market”

“We check all the boxes that make Charleston a top performer—but we have to keep market sustainability top of mind” said CTAR CEO Wil Riley. “We’re well positioned for more growth on many fronts—jobs, population and our economy is strong—but if we do not focus on developing smart growth strategies, we’ll price those who are coming here for those jobs out of the market” he said.

“Meeting the demands of the future will be a challenge” said Fisher. “This is why as an Association we are committed to creating and maintaining partnerships with municipalities to help craft smart growth strategies and place development where it makes sense and where it contributes to increasing the quality of life for all residents” she said.

*Information provided by the Charleston Association of REALTORS

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739 Hill St, Old Mt Pleasant, listed for $895,000- UNDER CONTRACT!

Lovely renovated home listed for $895,000.  Located on a quiet street in the Old Village/ Old Mt. Pleasant neighborhood. Home features include: *4 bedrooms, 3 baths and 2450 square feet. *Great curb appeal with a fully fenced yard, beautiful up-lit Grand Oak tree, spacious screened front porch, metal roof and flagstone patio. *Charming entry foyer with Ship Lap walls and wide-plank reclaimed Heart Pine Floors (that carry throughout the entire first floor) *Cathedral Ceiling in Living room with gas fireplace and custom mantelpiece.  UPDATE, HOME IS NOW UNDER CONTRACT!

 

 

Just Sold – 517 Royall Avenue, Old Village

I am thankful to be part of this lovely community, and wishing a warm welcome to the new family who will live in this awesome home!  If I can help you buy or sell, let me know what you need, I am happy to help!

517 Royall Avenue closed on November 9 for $925,000.

 

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Home Sales In The Old Village

Just sharing some of my sales in the Old Village, including the sales price and date of sale.  Thanks so much to my awesome clients!  Happy sellers and happy buyers.  Very blessed to be part of this community and help others do the same!

301 Center Street, sold on 6/29/18 for $1,385,000

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109 Friend Street, sold on 2/5/18 for $871,000

706 Simmons Street, sold on 2/23/2018 for $1,225,000

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522 Ruby Street, sold on 5/29/18 for $499,000

414 Rose Wilder, sold on 4/24/2018 for $600,000

308 McCormick Street, sold on 10/06/17 for $1,400,000

Mt. Pleasant Real Estate Market update

The National Associate Of Realtors has released the sales numbers for the first half of 2018, and they paint a picture of a healthy and consistent market when compared to the same time frame in 2017 and 2016.

Here is a quick snapshot to compare sales from Jan 1 to July 31, 2016-2018, for single family homes, located in Mt. Pleasant, South of the Isle of Palms Connector:

Although the number of homes sold is down slightly (from 757 sold in 2016 to 723 in 2018), the average sales price continues to be on the rise (from $602,000 in 2016 to $674,000 in 2018).

In 2018, homes are averaging 51 Days on the Market, which is relatively a short time frame.  But beware… homes that are sitting on the market over the average may need to reassess their strategy, whether it be by making changes to the home’s condition or reviewing price.  This is where a trusted professional can come in handy.

If you are thinking about buying or selling, it always makes sense to connect with a Realtor who specializes in your target market.  I have been selling homes in the area for years, and happy to help you achieve success.  Please feel free to contact me at Jackie@TheCassinaGroup.com for a consultation today.

 

MKT UPDATE

 

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To see all homes for sale or sold in the neighborhood, visit www.SearchOldVillage.com.