In 2019 we saw interest rates drop, housing inventory remain low and hot markets continue to heat up. Will those trends persist in 2020? Will home sales remain stagnant in the new year? Will an influx of new housing inventory come onto the market? Will younger consumers stop renting and start owning?
In summary, some predictions that are likely to shape the 2020 housing market:
1. Higher rents will probably lead to more millennial buyers if we can get building/land costs to flatten out.
2. More baby boomers will likely sell their homes at a top market value to relize a higer retirement benefit.
3. There will be more new construction, but it will struggle to keep up with population needs.
4. Home prices will keep climbing, but growth rates will slow.
Overall, home buyers and sellers should expect the housing market to remain stable in the coming year of 2020. This sentiment appears to be shared by most economists, lenders and builders alike. Of course, the possible wild card could be the 2020 presidential election taking place in the U.S. Although even in a big election year, with unemployment at record lows and consumer sentiment near all-time highs, inflation steady and wages growing for the first time in several years, it is unlikely the housing market will suffer a downturn in 2020
HOW DOES THIS IMPACT YOU DIRECTLY?
WHAT IS YOUR HOME WORTH IN LIGHT OF THIS INFORMATION?
HOW DO YOU NAVIGATE AS A BUYER IN THIS MARKET?
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