There are several things that can affect the housing market in 20201, here are a couple that may play out. Again this is just just my opinion on the 5 things that can cause a housing market crash in Nutley New Jersey.
For one thing the Federal Reserve could raise interest rates on purpose to slow down the Real Estate market, we have to watch what they do in the next several months especially with a new president going into the White House.
Two, if the Covid-19 Vaccines work well and get us up to heard immunity, home sellers that were sitting on the side lines waiting may put there homes on the market which will quell some of the supply and demand, that would happen around Spring in 2021.
Three, if Banks decide to tight up their lending criteria, banks are getting hurt right now because 2.8 million people in the united states are in a forbearance and the banks are not getting their money, that would slow down the demand and there will be less buyers.
Four, “The Foreclosure Crisis” once the moratoriums are lifted banks will start eviction proceedings, this may lead to more inventory to hit the market, the good news is many people have a lot more equity in their homes than they did in 2008.
And the last, Number five, The Government may want to cause a crash on purpose, tighten up VA and FHA lending to slow down and over heated market to make it more affordable for first time buyers. If you have any more questions you can reach me at 862-228-0554 http://www.elitehomesnutley.com