Low Housing Inventory Impact On Buyers And Sellers Explained:As mortgage rates remain at historic lows, the real estate market is expected to do very well this year. The most specific obstacle is
2020 Vision For The Housing Market
Housing Market Outlook with 20/20 Vision
As the nation enters into 2020, the housing market is a large topic of discussion amongst all generations. Most of these conversations are centered around questions:
What will the Market do? Are we headed for another 2007/2008 housing market?
Will home prices start to drop this year? Is now the time I should I sell?
These interest rates can't continue to stay low, should I buy now?
Key Predictions for 2020
Several different real estate analysts, there are 3 key predictions they all agree will occur in 2020:
Housing Demand will remain high in 2020 as inventory of homes are low
Mortgage rates are expected to remain low driving housing demand
Home Values will slowly increase throughout 2020 and into 2021
Housing Affordability will continue to shrink
According to Diana Olick, Real Estate Correspondent at CNBC , she noted the housing demand will remain high:
"It’s all about supply. The inventory of homes for sale has been falling steadily for several years and is at its lowest on the lowest end of the market. That caused prices to overheat, weakening affordability. The 2020 forecast offers no relief, in fact just the opposite. As demand heats up in the spring, driven by the growing number of millennials entering the market, the supply of homes for sale could hit its lowest in history."
As indicated by Freddie Mac, mortgage rates are expected to remain below 4% during 2020. This will continue to drive up home values, but a more stabilized rate than compared prior years.
As stated by Arch Mortgage Insurance Company,
"Putting it all together, we expect home prices to continueto grow, but at a slower, more sustainable rate of 2% to4% a year, on average."
With housing values predicted to increase throughout 2020, this will lead to a lack for affordability of first time home buyers.
2020 will be an amazing opportunity to sell your home and move into your dream home. Demand is high, rates are historically low, and home values are up!
Contact Team Caropreso today to discuss your home selling needs or click on the picture below for a FREE Market Analyst of your home!
Being the CEO and Team Leader of Team Caropreso, Vince specializes in Listings, Marketing, REO/Foreclosures,Short Sales and working with Investors. With 19 years of experience and selling over 700 hom....