Wow, 2019 was quite a year for the housing market. Median home prices hit a record high. So, what does 2020 have in store?
Whether you’re selling or buying here are the 2020 real estate trends you need to know:
- Home prices have been growing slowly and steadily and are predicted by Freddie Mac to continue to rise by 2.8% in 2020. So, you can expect to see home prices continue to rise this year.
- Mortgage interest rates have been dropping in 2019, steadily dropping below 4% for common types of loans. Interest rates should stay around 3.8% for a 30-year mortgage and 3.2% for a 15-year mortgage.
- Fannie Mae’s latest forecast was very positive as the 2020 GDP forecast was boosted by .2% to 2.1%.
- Freddie Mac’s economic forecast also projects 2020 home sales to increase from 6M in 2019 to 6.2M units next year.
- Millennials took the lead as the largest group (37%) of home buyers last year, their continued growing financial readiness will power demand for homes.
- Low mortgage rates, growing incomes, low unemployment, healthy consumer spending, and fading recession expectations all point to strength in housing.
Whether you’re selling or buying, you can take advantage of the current trends by partnering with Affinity-Realtors. We believe in taking the time to truly understand your dreams and goals. When we work together, we’ll be with you at each step to answer all of your questions and make sure your best interests are first and foremost.