What does the housing market forecast look like in the upcoming year? Here’s some 20/20 insight into the most common questions about home prices and sales, mortgage rates, and possible recession.
Will the cost of a home increase?
Home prices are predicted to rise in 2020, but only at an average of 2.8% nationally. However, this average varies by region based upon housing supply and demand. The Midwest states are showing stronger real estate appreciation with a projected 5% increase in home value. Overall, the skyrocketing home prices as in previous years is a trend of the past.
Will home sales remain low?
Home-buying demand for both new and existing home sales in 2020 will likely be lower than in 2019. Part of this is due to homes becoming less affordable. Many first-time buyers can neither afford the higher prices sellers are demanding nor the price of newly-constructed homes. And despite higher wages and lower unemployment, the cost of homeownership is still unattainable for a majority of wage earners across US housing markets.
What about mortgage rates?
Mortgage rates hit an all-time low in 2016, and current mortgage rates are available below 4% for qualifying buyers. US real experts expect this trend to continue in 2020.
Will there be a recession?
The Great Recession of 2007 burst the real estate market. While there is speculation of a repeat housing market crash in 2020, the real estate market is healthier than it has been, so don’t expect a housing market bubble to cause a recession in 2020. Look for home sales to slow in 2020, but the strong economic performances and a constrained home supply will likely outweigh any indicators of a housing crash.
Should I buy or sell in 2020?
While the forecast for 2020 is trending in slight favor of the buyer, it by no means will be a buyer’s market. With home price rising and mortgage rates dropping, real estate experts foresee a balanced housing market where the supply from sellers will equal the demand from buyers. The number of available homes looks to remain stable going into the new year, but with less buyer competition for those homes.
If you’re in need of mortgage financing and aren’t sure what direction you need to go in, you can trust the experienced professionals at Pacor Mortgage. Give us a call today at 773-881-7744 to set up an appointment, or visit our website to learn more about how our services can assist you.
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