New Year Market Forecast

Here’s everything you need to know about the 2020 housing market.

Looking to buy a home? Click here to search for a home.

Looking to sell a home? Click here for a FREE home valuation.

A new year—and a new decade—has arrived, and so I’ve decided to provide a brief housing market forecast to help you go forward with more confidence. 

The first thing we can expect for 2020 is that home price growth will flatten, with a forecasted increase of just 0.8%. 

Inventory will remain constrained, especially in the entry-level price segment. Tight inventory and rising mortgage rates will lead to a drop in sales. 

Buyers will continue to move to more affordable homes, benefitting the mid-size markets. One of the reasons for this is supply and demand; on the supply side, inventory shortages will persist because baby boomers and Gen Xers are holding onto their homes. 

Tight inventory and rising mortgage rates will lead to a drop in sales.

Regarding demand, affordability is the key factor. 50% of all home purchase mortgages are by millenials, creating a mixed bag for buyers. There will be more new construction homes to choose from, and while getting financing may be easier, finding the right home may be harder. 

For sellers, this means it’s time to revise expectations. Your home absolutely needs to be priced correctly. Affordable homes will sell, but higher-priced homes will linger on the market. 

If you have any questions you’d like me to answer, please feel free to reach out to me. I’d be glad to help you with your specific situation.