On the tail of an interesting 2019, I’m going to give a forecast for the real estate market in 2020. Here’s what experts are predicting:
Mortgage interest rates are expected to remain low. Experts from Fannie Mae, Freddie Mac, NAR, and the Mortgage Bankers Association are predicting that rates should remain fairly stable throughout 2020—great news for buyers looking to capitalize on the lowest rates we’ve seen in history (all under 4%).
Despite dwindling inventory, three of the four experts I just mentioned are predicting an increase in sales. Thanks to those low rates, buyer demand is still high, and with the uptick of new construction in our area, we expect to see more sales.
Six of the expert entities that keep track of home prices are all predicting an increase in prices throughout 2020—quite in line with what we saw in 2019.
A recession isn’t likely, and if it does occur here, it won’t be severe. Last year, the number of forecasters predicting a 2020 recession was significant, but more recently, it has gone down quite a bit. No one knows for certain what will happen, but the experts do agree that, should a recession happen this year, its effect on the real estate market will be minimal.
I’m very optimistic about this year. I’ve got a lot on my queue and more people are reaching out to me every day. You may recall that I recently sent out a survey. 14% of respondents said they will buy or sell a house in 2020, while 42% said they plan to do a remodel this year.
If you need any recommendations for contractors or builders, or have any questions about the market, feel free to call or email me. I’d be happy to help any way I can.