Our market is expected to heat up in 2020, and sellers are primed to take advantage of it.
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What will our housing market look like in 2020?
In short, the market is projected to heat up in the coming year, as 2018’s midyear downturn is expected to finally end. Low mortgage rates—expected to hover around 3.8%—will likely invigorate buyers, which will increase competition as the nation’s housing inventory continues to dwindle due to several factors, including rising tenure length.
Overall, market economists predict that buyers could have the fewest homes to choose from in 2020 than they have in the last five years. Low mortgage rates started to revitalize the market at the end of last summer, but we won’t see their full impact on demand until next year.
The return of bidding wars is good news for sellers who held off on listing this year as the market stabilized.
Moving forward, it’s expected that one out of every four offers will be a part of a multiple-offer situation. The average for 2019 was one out of every 10. The return of bidding wars is good news for sellers who held off on listing this year as the market stabilized. This increase in competition is also likely to boost home prices by 6% during the first half of the year, which is considerably stronger than the 2% growth we saw during the first half of 2019.
Increased competition and faster price growth will gradually tempt more homeowners and builders to list homes, which will help balance out supply and demand toward the end of the year. This should moderate price growth to a rate of about 3%.
If you have any questions about our market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I look forward to hearing from you.