In 2019 the housing market saw some highs (as in high demand) and lows (like low rates). As many families plan for potential real estate changes in 2020, here is some insight into what homebuyers may expect.
Continued low mortgage rates. The general consensus from Freddie Mac, Fannie Mae, and the Mortgage Bankers Association indicates that rates will most likely stay low, hovering around 3.6-3.9% in 2020. This allows homeowners the opportunity to refinance current properties, or look for a new home that may offer more space than originally anticipated.
Increased home prices. Low inventory of starter and mid-level homes, currently in high demand, will cause home prices to continue to tick up. New construction homes typically start at a higher price point, putting stress on a market already in need for lower price units. With most states and metro markets not expecting this to change anytime soon, motivated homebuyers should be ready to negotiate when they enter an offer.
Low inventory. While the average American family lived in a home for about eight years in 2010, families now are staying put for closer to 13 years. This causes a strain on the housing inventory–especially now that many first time home buyers are looking to take advantage of low interest rates. New construction in suburbs offers some relief in the near future, but probably not enough to catch up this year.
Ready to start your home buying journey this year? Contact one of our agents to help customize a search to fit your needs and answer any outstanding questions you may have on the process.