It’s hard to believe that it has been almost 12 years since the 2008 financial crisis. The days of foreclosures, short sales, and homeowners frantically trying to hang on to their homes are behind us. Nervous lenders and the challenges of difficult financing are a thing of the past. What a difference a decade makes! Over the last ten years, the housing industry has benefited from historically low interest rates and a strengthening economy. Homeowners have experienced solid price appreciation. Buyers have been afforded a variety of financing options at great rates. Granted, inventory has been tight, but there is no question that it has been a steady period of growth and good times for real estate.
So, what lies ahead? According to Danielle Hale, Chief Economist at Realtor.com, “The more things change, the more they’ll stay the same. A lack of homes for sale has been making things difficult for buyers since 2015, and next year, inventory could reach historic lows. And although single-family home construction is expected to increase 6%, it still won’t be enough to keep up with demand.” On the bright side, according to Danielle, “Mortgage rates are expected to remain reasonable, at an average 3.85%.”
What’s In Store For 2020?
Realtor.com summed it up below:
- National Housing Forecast 2020: Housing markets search for new balance
- Home price growth will flatten, with a forecasted increase of 0.8 percent
- Inventory will remain constrained, especially at the entry-level price segment
- Mortgage rates are likely to bump up to 3.88 percent by the end of the year
- Tight inventory and rising mortgage rates will lead to dropping sales
- Buyers will continue to move to affordability, benefiting mid-sized markets