According to the senior economist from Realtor.com, the housing market predictions for 2020 are expected to flatten with a 0.8% rise. Factors include a mixture of economic growth, high employment and low interest rates. This type of stimulus will help demand remain high. Other factors depend on what market segment you may be in as the demand may be different if you are currently looking to acquire a home.
Entry-level homes will continue to have a rising demand from Millennials looking to acquire their first home. Millennials are reaching the age of homeownership and despite the myths that they want to be in an apartment in the city, many are moving out to the suburbs. They want approximately an 1,800 sq ft move in ready home and are willing to drive their kids to good elementary schools. Additionally, down payments are larger than previously recorded from this generation.
Baby Boomers are not only looking to downsize to active adult communities, a trend that we have seen for years. They are also looking to purchase smaller homes which is creating additional demand for new and smaller housing. The market is not meeting the demand as most new construction in 2019 was for upper tier housing (higher than average in the market place) which is not easing these conditions. Smaller new construction homes are ideal for baby boomers looking to downsize.
Interest rates are predicted to stay reasonable and remain under 4%. Currently they are very competitive at 3.5% for a 30-year fixed loan and 3.0% for a 15 year. These are some of the lowest interest rates in history. If the interest rates rise significantly, it will impact the value of homes. High interest rates would mean lower purchasing power and as a result, a shift downward in the housing market.
Believe it or not, the Spring market is closer than we think and according to local realtors comments, it seems to keep getting earlier and earlier. A few years ago, the Spring market was considered to start as early as mid-February. Then I heard it was the beginning of February, as in starting on Super Bowl Sunday. Now it seems to be starting at the end of January. With higher demand, homes are going on the market earlier to get ahead of the mix.
Knowing the fair market value of a home is a critical component of both purchasing and selling. Depending on the situation, a market forecast can be helpful, however no one can predict the future. Predictions that the market is not declining is a good sign for short-term investors and home flippers. If you are looking to purchase a home that you will be in for many years, these predictions should not be meaningful in your decision-making process.
What should be meaningful is knowing the current fair market value when you purchase or sell a home. If you are thinking about selling a home, and perhaps don’t want to use a realtor or want to know the fair market value before selecting a realtor, a pre-listing appraisal will help. This will give you an idea of how to list the home and a leg to stand on when negotiating. Conversely, if a home has been sitting on the market and you don’t know what to offer, getting a pre-purchase appraisal can help with that decision-making process.
At American Realty Appraisals, we have experience helping both buyers and sellers by providing accurate fair market value appraisal reports. If you or someone you know is looking to buy or sell a home, call us today so that we can help in making this very important decision.
Evan from American Realty Appraisals came out to our home last spring to conduct a home appraisal in support of our property tax appeal. He arrived promptly at the agreed time, was very professional and conducted a thorough walk through. We were very satisfied with the results of his appraisal - they were well-researched and accurately captured the features of the home. His appraisal proved to be a crucial element in a very successful tax appeal. I would gladly recommend his services to others.
I was extremely pleased in my experience with American Realty Appraisals. Evan was very knowledgeable and was happy to answer any questions I had. His appraisal was useful in our being able to successfully appeal our taxes. It was worth every penny. He also shared some suggestions on how to shore up insulation efficiency around the house. 5 Star service. thanks!
Evan was extremely helpful in our obtaining a favorable result from our tax appeal and I highly recommend his services
If you want the Do's and Dont's. I would say DO use Evan. It was a very smooth and easy process. He worked around my schedule. His turnaround time was very impressive. Price: He was in line with the other quotes I received. And you DON'T need to worry. I will recommend him and use him again
Prepared the documents to submit for a tax appeal and accompanied me to the tax appeal hearing to present my case. I have used American Realty Appraisals twice and have won my tax appeal each time.
I was appealing my real estate taxes and American Reality did an appraisal on my home. The appraisal went well and as a result the tax appeal was successful and our real estate taxes were lowered.
I was ignoring go through Tax appeal process because I thought it was so cumbersome with very little chance of winning. In this process, I used Evan for a tax appeal. Not only we won but it was very easy and simple process between him and the lawyer. I highly recommend to use Evan, he knows what he is doing!
The tax appeal through you and Lisa Walsh was successful, and you may use me as a reference any time in the future
Evan was great. He was instrumental in helping me to appropriately lower my taxes via an accurate appraisal. I highly recommend his services to anyone in need of an appraisal in NJ.
When the interest rates dropped last year, I decided that it was a good idea to refinance my mortgage. I was recommended to American Realty Appraisals by my mortgage company. They were affordable, expedient, and ultimately put together a very comprehensive report with figures, photos, and local comps. I would highly recommend them to anyone looking for a professional and honest appraisal company.
Evan and his team at American Realty Appraisals are simply the best at what they do. As a mortgage banking professional, I have worked with dozens of appraisal firms over the years and I continually return to American Realty Appraisals when I can for their expert advice and service. I would highly recommend them if you are an individual looking to have your home appraised, or a banker looking to add a high quality appraisal firm to your list of approved appraisers.
Before I went to list my home, I hired Evan at American Realty Appraisals. I wanted an unbiased opinion of what my home was worth. He provided a thorough report that gave me piece of mind and a leg to stand on when it comes time to negotiate. I was also pleased with how fast he turned the report around after the inspection.
I am an attorney in Westfield and I refer all of my clients to American Realty Appraisals. I have worked closely with Evan Siegel for the past two years and I have been impressed with his professionalism, integrity and expertise as an appraiser. Relying on his appraisals, I have been able to negotiate property tax reductions for numerous clients in Union County. I highly recommend American Realty Appraisals for all of your residential real estate appraisal needs.
ARA did a great job of handling my tax appeal. The guidance was spot on and the staff, specifically, Evan Siegel, was professional and knowledgeable. The outcome was excellent and I'm saving a good amount of money on my real estate taxes. Thanks ARA!!
I used Evan for a tax appeal project. It was a seamless operation between him and the lawyer. Zero blips, and we won.
Mr. Siegel performed an appraisal for my home for tax appeal purposes. He was very professional and helped me lower my taxes by 17%. I am quite satisfied with his work.
Highly recommend. Excellent service, professional, prompt. Great result