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2020 Economic & Housing Market Forecast | Windermere Realtors

https://www.windermere.com/blogs/windermere/posts/2020-economic-housing-market-forecast - In this coming year, affordability issues will persist in many markets around the country, such as San Francisco; Los Angeles; San Jose; Seattle; and Bend, Oregon. The market will also continue to favor home sellers, but we will start to move more toward balance, resulting in another positive year overall for U.S. housing.

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2020 Economic & Housing Market Forecast | Windermere Realtors

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  1. WINDERMERE 2020 Economic & Housing Market Forecast

  2. “ As we head toward the end of the year, it’s time to recap how the U.S. economy and housing markets performed this year and offer my predictions for 2020. “

  3. US Economy

  4. In general, the economy performed pretty much as I expected this year: job growth slowed but the unemployment rate still hovers around levels not seen since the late 1960s. Following the significant drop in corporate tax rates in January 2018, economic growth experience a big jump.  In 2020, I expect payrolls to continue growing, but the rate of growth will slow as the country adds fewer than 1.7 million new jobs.  Many economists, including me, spent much of 2019 worried about the specter of a looming recession in 2020. Thankfully, such fears have started to wane (at least for now).

  5. Existing Homes • As I write this article, full-year data has yet to be released. However, I feel confident that 2019 will end with a slight rise in home sales. For 2020, I expect sales to rise around 2.9% to just over 5.5 million units. • Home prices next year will continue to rise as mortgage rates remain • very competitive. Look for prices to increase 3.8% in 2020 as demand • continues to exceed supply and more first-time buyers enter the market. • In the year ahead, I expect the share of first-time buyers to grow, making them a very significant component of the housing • market. 

  6. New Homes The new-home market has been pretty disappointing for most of the year due to significant obstacles preventing builders from building. Land prices, labor and material costs, and regulatory fees make it very hard for builders to produce affordable housing. As a result, many are still focused on the luxury market where there are profits to be made, despite high demand from entry-level buyers.

  7. Mortgage Rates Next year will still be very positive from a home-financing perspective,withthe average rate for a 30-year conventional, fixed-rate mortgage averaging under 4%. That said, if there are significant improvements in trade issues with China, this forecast may change, but not significantly.

  8. Conclusion In this coming year, affordability issues will persist in many markets around the country, such as San Francisco; Los Angeles; San Jose; Seattle; and Bend, Oregon. The market will also continue to favor home sellers, but we will start to move more toward balance, resulting in another positive year overall for U.S. housing.

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