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        <title>Real Estate Blog</title>
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    <guid>https://www.minneapolisurbanhomes.com/blog/2020-homebuying-checklist.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/2020-homebuying-checklist.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>2020 Homebuying Checklist</title>
    <description> <![CDATA[ 



 




Some Highlights:




If you’re thinking of buying a home, plan ahead and stay on the right track, starting with pre-approval.


Being proactive about the homebuying process will help set you up for success in each step.


Make sure to work with a trusted real estate professional along the way, to help guide you through the homebuying steps specific to your area.




From Keeping Current Matters, 1/30/20


 ]]> </description>
    <pubDate>Thu, 30 Jan 2020 13:44:00 -0600</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/strength-of-the-economy-is-surprising-the-experts.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/strength-of-the-economy-is-surprising-the-experts.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Strength of the Economy Is Surprising the Experts</title>
    <description> <![CDATA[ 



 




We’re currently in the longest economic recovery in U.S. history. That has caused some to ask experts to project when the next economic slowdown (recession) could occur. Two years ago, 67 of the economists surveyed by the Wall Street Journal (WSJ) for the Economic Forecasting Survey predicted we would have a recession no later than the end of this year (2020). The same study done just three months ago showed more than one third of the economists still saw an economic slowdown right around the corner.


The news caused concern among consumers. This is evidenced by a recent survey done by realtor.com that shows 53 of home purchasers (first-time and repeat buyers) currently in the market believe a recession will occur by the end of this year.


Wait It seems the experts are changing their minds….


Now, in an article earlier this month, the Wall Street Journal (WSJ) revealed only 14.3 of those economists now believe we’re in danger of a recession occurring this year (see graph below):The WSJ article strongly stated,




“The U.S. expansion, now in its 11th year, will continue through the 2020 presidential election with a healthy labor market backing it up, economists say.”




This optimism regarding the economy was repeated by others as well.


CNBC, quoting Goldman Sachs economists:




“Just months after almost everyone on Wall Street worried that a recession was just around the corner, Goldman Sachs said a downturn is unlikely over the next several years. In fact, the firm’s economists stopped just short of saying that the U.S. economy is recession-proof.”




Barron’s:




“When Barron’s gathers some of Wall Street’s best minds—as we do every January for our annual Roundtable—we expect some consensus, some disagreement…But the 10 veteran investors and economists who convened in New York on Jan. 6 at the Barron’s offices agree that there’s almost no chance of a recession this year.”




Washington Post:




“The U.S. economy is heading into 2020 at a pace of steady, sustained growth after a series of interest rate cuts and the apparent resolution of two trade-related threats mostly eliminated the risk of a recession.”




Robert A. Dye, Chief Economist at Comerica Bank:




&quot;I expect that the U.S. economy will avoid a recession in 2020.&quot;




Bottom Line


There probably won’t be a recession this year. That’s good news for you, whether you’re looking to buy or sell a home.


From Keeping Current Matters, 1/30/20


 ]]> </description>
    <pubDate>Thu, 30 Jan 2020 12:48:00 -0600</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/the-2020-real-estate-projections-that-may-surprise-you.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/the-2020-real-estate-projections-that-may-surprise-you.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>The 2020 Real Estate Projections That May Surprise You</title>
    <description> <![CDATA[ 



 




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: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: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.


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.


From Keeping Current Matters, 1/2/20


 ]]> </description>
    <pubDate>Thu, 02 Jan 2020 10:00:00 -0600</pubDate>
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