A new year has arrived, which means many people are planning to buy or sell a home in the coming months. The spring real estate market, which begins as early as January, is the busiest real estate season in many parts of the country. If you’re planning to buy or sell in 2020, here are some helpful predictions from the National Association of REALTORS’ 2020 Housing Forecast.
Forecast for Key Housing Indicators
- Average Mortgage Rates: 3.85% throughout the year
- Existing Home Median Sales Price Appreciation: up 0.8%
- Single-Family Home Housing Starts: up 6%
- Existing Home Sales: down 1.8%
2020 predictions for buyers
As new homes come on the market and home prices moderate, many homebuyers will benefit. Homebuilders in 2019 were most focused on the high-end market, meaning buyers in that segment are likely to find the most options. However, builders are beginning to shift toward the mid-price market. Mortgage rates are expected to stay low, which will benefit homebuyers across all price ranges.
2020 predictions for sellers
As home prices flatting in 2020, home sellers will need to show patience and develop a thoughtful strategy when selling their homes. The entry-level market should be the most competitive, meaning these home sellers should see their properties move the fastest. Thankfully, with mortgage rates expected to stay low, sellers shouldn’t have to worry about buyers finding attractive financing for their purchases.
If you’re planning to buy a home in 2020, contact us to get preapproved for your home financing and learn how much home you can buy.