A New Decade: What Does the Housing Market Look Like in 2020?
It's hard to believe, but the time has come to turn the page on the current era and move onto a new one: the 2020s. That's right, the 10's have come and gone, and with it, a resurgent housing market. If you're looking to sell your home, that's good news.
The housing market crash is about to be two decades removed, which has meant good news for most of those looking to buy and sell homes across the country. But will the prosperity continue, or is there a big danger ahead?
It's not always easy to see the future clearly from where we're sitting. But there is some evidence that can help us to understand the months ahead. Read on and we'll walk you through what you need to know.
What The Housing Market Looks Like Now
2019 isn't the hottest year of the decade by any means, but it's still a strong enough year to lead into the new decade. Things have come down a bit since 2017, when you could barely keep a house on the market.
Still, in most places around the country, things are looking good. A house on average would spend about 49 days on the market before finding a buyer, which is definitely not too shabby.
The median home price rose this from the level it was back in 2018, and we can probably expect that price to increase next year as well. Last year's increase was about 3.1% and there should be a similar margin between this year and the next one as well.
Overall, there's nothing about the 2019 market, in particular, that's throwing red flags for the next few years.
New & Existing Home Sales Will Remain Low
If there's one thing you can probably bet on in 2020, it will be that home sales will remain slow. This slow down started in the middle of 2018, and the evidence shows that there isn't any expectation for things to hurry back up.
Why this slew of longer sale time? The difficulty seems to be that many first-time home buyers can't seem to make it in the current market. Record high home prices are making it hard for those trying to buy their first house. Many are opting out of home ownership altogether, as the prices are just too high.
While this shouldn't pose an immediate threat to the future of the American housing market, it can cause problems if this trend continues for years down the line.
Mortgage Interest Rates Remain Low
Need something to be thankful for in the new year? Mortgage interest rates should remain at low levels throughout 2020. At the current moment, things are expected to remain as low as under 4% in most places.
The combination of these low rates and a strong employment cycle should mean the housing market will remain strong in the years to come. There's no imminent danger on the horizon, and hopefully, things will only improve.
The Housing Market in 2020
If you're interested in buying or selling your home, it's essential that you try to understand what the housing market might look like in the coming year. The above information should help cover the basics.
Need more advice and information? Reach out with any questions you may have.
