2020 Real Estate Market—Thrive or Crash & Burn?
February 20, 2020 | Gail Hardy
This same time a year ago, many people were predicting that 2020 was going to be a rough real estate year. I heard it from so many people it that I was concerned about what it might mean for realtors such as myself. History has shown a presidential election year can be tough on real estate. Consumers don’t know how what’s going to happen with the election, be it a Democrat or Republican nominee that wins the presidency, and it can significantly impact our economy.
However, predictions aren’t always accurate and this is one of this cases where it’s quite the opposite. We are two months into 2020, and what we are seeing is even more promising than 2019. Unemployment is at an all time low for the last 50 years. Average interest rates for residential homes are lingering below 4% and have been for the last 36 weeks straight. The housing market is struggling with lack of inventory, even before we hit spring and summer, the typical best times of the year to buy and sell.
What does that mean for those who are thinking about buying or selling in 2020? There’s simply not enough inventory. Many homeowners are deciding to stay put longer. Builders can’t keep pace with the demand. These factor into an increased amount of multiple offer situations in a competitive market where there isn’t enough inventory, but there’s an abundance of buyers. Builders are not budging on price because they have no trouble selling their inventory and could sell much more if they could build it quickly enough.
East Tennessee has no state income tax and for many people. It’s a great place to retire with the Great Smoky Mountains as a beautiful back drop, as well as being a tax haven from states who are exceedingly charging higher taxes, such as Illinois, New York, New Jersey, California, and Oregon. We are seeing many people, retirement age and younger, choosing to relocate to states where it’s not so costly to live. Tennessee tops the nation’s list for good weather, up-and-coming cities such as Nashville and Knoxville, and most importantly, an affordable cost of living. All of these factors together keep our real estate market strong in East Tennessee!
Gail Hardy is an Affiliate Broker with Southland Realtors in Knoxville, TN. She is always looking for new clients! You may reach out to her at 865-805-3054, email Gail@southlandrealtors.com, or click on https://southlandrealtors.com/agents/gail-hardy/.