In this episode, Nicole Saunches discusses the 2020 Real Estate Market Outlook with Chris Musto from Guaranteed Rate.  

Many people are approaching this year anticipating a recession, however, times have changed and there are quite a few differences between the years that led up to 2008 and the real estate crash and today that may ease these concerns.

• At the end of 2019, the U.S. jobless claims were at a 50-year low.  And, we're seeing the same in Florida.  A recent article in the Tampa Bay Times reported that the state's unemployment rate dropped to a record-low 3% (the lowest since record-keeping began in 1976).
• Stricter lending standards reduct the likelihood of borrowers defaulting on their mortgages
• Nationwide, it appears that homeowners are more cautious choosing to retain equity in their homes instead of borrowing against them
• Subprime, portfolio and nonprime loans only made up a small percentage of loans (compared to ~20% in 2005)
• State forecasters estimate that Florida is gaining 906 residents daily

Below are the new loan limits for Pinellas County:

• FHA - $331,760 for a single-family home; $424,800 for a duplex; $513,450 for a triplex and $638,100 for a quad
• Conventional/Conforming - $510,400

Below are the 12/2019 Pinellas County stats referenced:

• Combined Closed Sales (single-family homes &  condos/townhomes): 12/2019 - 1,928 sales (up 11.3% over 12/2018); 12/2018 - 1,733 sales; 12/2017 - 1,891 sales; 12/2016 - 1,875 sales
• Closed Sales for single-family homes: 12/2019 - 1,242 sales (up 19.5% over 12/2018; 12/2018 - 1,039 sales; 12/2017 - 1,137 sales;  12/2016 - 1,188 sales
• Closed Sales for condos/townhomes:  12/2019 - 686 sales (down 1.2% from 12/2018); 12/2018 - 694 sales; 12/2017 - 754 sales; 12/2016 - 687 sales

• Combined  New Listings - 12/2019 - 1,459 units (down 15.4% from 12/2018); 12/2018 - 1,724 units; 12/2017 - 1,581 units; 12/2016 - 1,675 units
• New Listings (single-family homes) -  12/2019 - 914 units; 12/2018 - 908 units; 12/2017 - 935 units; 12/2016 - 995 units
• New Listings (condos/townhomes) - 12/2019 - 545 units; 12/2018 - 816 units; 12/2017 - 646 units;  12/2016 - 680 units

• Inventory (combined active listings for single-family homes & condo/townhomes): 12/2019 - 4.580 units (down 21.4% from 12/2018);  12/2018 - 5,828 units; 12/2017 - 4,970 units; 12/2016 - 5,728 units
• Single-Family Inventory: 12/2019 - 2,556 units (down 23.1% from 12/2018);  12/2018 - 3,322 units;  12/2017 - 2,890 units; 12/2016 - 3,288 units
• Condo/Townhome Inventory: 12/2019 - 2,024 units (down 19.2% from 12/2018); 12/2018 - 2.506 units; 12/2017 - 2,080 units; 12/2016 - 2,440 units

• Median Price for single-family home: 12/2019 - $271,000 (up 8.4% over 12/2018); 12/2018 - $249,000; 12/2017 - $239,900; December 2016 - $222,250
• Median Price for condos/townhomes: 12/2019 - $188,500 (up 1.9% over 12/2018); 12/2018 - $185,000, 12/2017 - $162,000; December 2016 - $142,000

• Average Sales price for single-family homes: 12/2019 - $356,003 (up 8.9% over 12/2018); 12/2018 - $326,789; 12/2017 - $303,016; 12/2016 - $276,945
• Average Sales price for condo/townhomes: 12/2019 - $260,713 (down 14.3% from 12/2018); 12/2018 - $304,056; 12/2017 - $240,497; 12/2016 - $215,214

• Months supply of inventory for single-family homes: 12/2019 - 2.3 mos (down 23.3% from 12/2018); 12/2018 - 3 mos; 12/2017 - 2.5 mos; 12/16 - 2.8 mos
• Months supply of inventory for condos/townhomes: 2.7 mos (down 18.2% from 12/2018); 12/2018 - 3.3 mos; 12/2017 - 2.7 mos; 2016 - 3.4 mos