Housing Market Update

by | Nov 17, 2020 | Wealth Management

pexels david mcbee 1546166

So far 2020 has not impacted the current home buying boom and it does not appear to be slowing down. The National Association of Realtors reported that existing-home sales grew nearly 21% from one year ago and homes sold faster in September than what we normally see during this season as low-interest rates drove pent-up buyer demand.(1)

Forbes magazine reports housing is in a “full-fledged boom”. Last quarter saw $1.1 trillion in mortgages issued, the most in 14 years, while in September, the number of people buying new homes hit a 14-year high!(2)

In addition, residential construction spending went up 2.8% in September, to a level 10.1% higher than a year ago. These new homes should soon begin to relieve the inventory shortage many markets are experiencing.(3) Part of what is driving this trend is the number of young buyers (under age 35) entering the market. Looking at the chart below we can see they left the market after the 2008 crisis but since 2018 that trend has begun to reverse. Given record low inventory and increasing demand the housing market is currently looking very strong.

image
  1. Source:  National Association of Realtors (https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales).
  2. Source:  Forbes (https://www.forbes.com/sites/stephenmcbride1/2020/10/29/american-housing-is-in-a-full-fledged-boom/?sh=7ae6e09d3df9).
  3. Source:  U.S. Census Bureau (https://www.census.gov/construction/c30/pdf/release.pdf).

Latest From The Blog

Archives

Our Services

Investment Management

Tailor portfolios to your needs and goals.

Retirement Planning

Investing and saving wisely is vital to success in retirement.

Financial Planning

Navigating the complexities of your financial affairs can be simplified.

Tax Management

Help to increase the amount you “take home”.

Estate Planning

Protect your loved ones and make sure your legacy endures.

Executive Compensation Analysis

Simplify the many options and decision points of executive compensation plans.

Education Planning

Confidently plan for your children’s future.

Charitable Giving

Give in a tax-smart, simple way.

*Please Note: Limitations.  The scope of services to be provided depends upon the terms of the engagement, and the specific requests and needs of the client. BFSG does not serve as an attorney, accountant, or insurance agent.  BFSG does not prepare legal documents or tax returns, nor does it sell insurance products.  Please Also Note: Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BFSG) or any financial planning or consulting services, will be profitable, equal any historical performance level(s), or prove successful.

Sign Up For Our Newsletters

(They're great, we promise)

Connect With Us