A year ago who would have considered that an unemployment rate of 13.3% would be considered a positive development? But then one year ago, who would have considered that we would have been dealing with a pandemic for the last 3 months? Many of the real estate experts are now thinking that the housing market is going to continue to trend higher, possibly turning into another season of buyers bidding up for properties.Realtor, Sign, Sold, Real Estate, Estate

Another one of the reasons that the hot housing market is expected for the summer of 2020 is that due to the pandemic, the usually strong spring season was never realized.
Compounding the market in general is the significant shortage of housing inventory. In many key counties especially in those counties that are adjacent to New York City, there is less than 3 months supply available.
The 13.3% unemployment numbers compares with the 10% unemployment figure posted at the height of the Great Recession.
Couple that with some of the lowest mortgage rates in recent memory and you have the recipe for an extraordinarily active buyer’s market.
This is confirmed by the surge in the number of mortgage applications for home purchases, which came in at 8.7% above those applications reported in May of 2019.
The number of forebearances as of June 2nd, came in at 4.73 million, which is down from 4.76 million for the prior week, based upon numbers reported by Black Knight. Average home prices also climbed by 3.1% year-over-year for the last two weeks in May.

Flight from the Cities
What will also be interesting to track is the migration of people from the densely populated urban markets. Realtor.com reported that, “The coronavirus pandemic has many Americans rethinking the kind of lifestyle they want. Apartment living in central, densely populated urban areas is losing its appeal as residents are subject to building restrictions and risk coming into contact with people infected by the virus.”

In addition, many of the demonstrations following the death of Floyd in police custody last month, have produced riots and looting in many major urban cities. Though many were peaceful, those that broke out into mobs of looters produced another reason for individuals to flee the cities. .

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

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