This is a great article on 2020 real estate predictions. Although this article is more of a national view of the real estate market it offers some great insight on interest rates and it also talks about what buyers and sellers can expect in the upcoming year.
My personal forecast for our East Coast market would be a mirror image of 2019. Even with an election year as long as our economic outlook stays strong and rates stay low I see no major change.
Eager to hear your thoughts.
The Biggest Changes Coming in 2020 Real Estate—and What Buyers
Ten years ago, many homeowners were desperately hoping to hang on to their homes. Others were doing everything they could just to scare up potential buyers. Meanwhile, said buyers were struggling to get financing from newly skittish lenders. Ah, memories. What a difference a decade makes!
It has, in fact, been the most consequential stretch in American real estate history, one that has fundamentally altered the landscape. Cosmopolitan coastal cities are out; affordable midsize cities are in. Baby boomers and Gen Xers are no longer the dominant forces in buying, ceding that turf to millennials. Yet after all this time, it seems that home buyers still can’t get much of a break, according to a new report from realtor.com®.
“In 2020, there will be opportunity for buyers, but in many ways the challenges they’ve faced for years are going to persist—challenges like difficulty finding the home that’s right for them, and competing with other buyers, especially in affordable price points,” says Danielle Hale, chief economist at realtor.com, whose team pulled together a forecast of housing trends for 2020.
In other words: The more things change, the more they’ll stay the same. A lack of homes for sale has been making things difficult for buyers since 2015, and next year, inventory could reach historic lows. And although single-family home construction is expected to increase 6%, it still won’t be enough to keep up with demand.
There is a bright side, though: Mortgage rates are expected to remain reasonable, at an average 3.85%.
Let’s take a closer look at the biggest factors that will shape the real estate market in 2020.