Signs of a Strong Housing Market Still to Come in 2020

New home sales were at their best since 2007 in this year’s report. According to the Commerce Department data, building permits have had the biggest increase in 12 years. The National Association of Realtors reported a 6.2% increase in prices of existing homes nationwide.

National Association of Homebuilders CEO Jerry Howard supports that the housing market is strong and will continue to stay strong in the new year. He advises there is no evidence of recession.

“I’ve been all over the country and builders are really, really gung-ho,” said Howard.

There are many supporting factors that indicate a strong market. Mortgage rates remain around 3.66% with solid lending trends. Mortgage originations are expected to hit over $2 trillion, the best year since 2007. The Federal Reserve has been cutting rates this year and the central bank has reduced rates a total of three times since July 2019.

Redfin CEO Glenn Kelman agrees with the data’s findings. “The Fed is going to keep rates low, the mortgage markets have priced that in, and that’s going to keep demand strong,” says Kelman.

This is good news after Benn Steil and Benjamin Della Rocca of the nonpartisan think tank Council on Foreign Relations predicted a recession before the Election in 2020. Data collected shows an exact opposite of their prediction and will continue to push for a strong economy in days to come.

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