Today I’m sharing your housing market forecast for 2020.
According to forecasts by First American and Redfin, the housing market is expected to really heat up in 2020, as the 2018 mid-year downturn is finally expected to come to an end.
Low mortgage rates, which are expected to hover around 3.8%, will likely invigorate the buyer market. This, in turn, will increase competition among buyers as the nation’s housing inventory continues to dwindle.
Overall, this could mean homebuyers will have fewer home buying options. While those low mortgage rates started revitalizing the market this past summer, their full impact on demand probably won’t be felt until the end of the first quarter of 2020.
Buyers in 2020 will have fewer homes to choose from than they’ve had in five years. However, the return of bidding wars is good news for sellers who have held out this past year while the market stabilized. According to leading economists, about one in four offers will face bidding wars in 2020, compared to one in 10 in 2019.
Overall, this could mean homebuyers will have less home buying options.
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This will likely push annual price growth up to 6% in the first half of the year—considerably stronger than the 2% we saw for the first half of 2019.
By the end of 2020, it’s predicted that the strong seller’s market will entice many more homeowners and builders to list homes, therefore improving the balance between supply and demand. Later on, this balancing out will likely cause the annual price growth to be around 3% for the second half of 2020.
Call or text to set up your free room-by-room review and preparation to take advantage of the 2020 market ahead. We’re always happy to hear from you.
