We’re now in the third quarter of 2019 and it seems that it’s still a seller’s market in most cities across the nation. Plus, some housing experts and economists predict the next recession will likely begin in 2020. So, will that seller’s market continue? Should home sellers feel pressure to close deals quickly? And what does all of this mean for those buying an investment property? Though no one can accurately predict the future of the real estate investing industry, we can make an educated guess based on thorough research. Let’s take a look at the US housing market forecast 2020 for home prices, home sales, mortgage rates, and more.
In their 2019 housing market forecast, the National Association of Realtors had predicted that the national median existing-home price would rise to around $266,800 in 2019 (up 3.1% from 2018). Going into 2020, NAR predicts another rise of about $274,000 in the median home price. In fact, numerous experts have lowered their housing market predictions for the next 5 years for home prices and appreciation rates. According to Zillow’s Home Price Expectations Survey (which surveyed a panel of over 100 real estate and economic experts), experts forecast that home prices will rise only 2.8% in 2020 nationally. This tells us that prices will go up – just at a slower rate. So, the idea of watching home prices skyrocket, as in previous years, no longer applies.
A July 2019 press release from S&P Dow Jones Indices stated: “Data released today for May 2019 shows that the rate of home price increases across the U.S. has continued to slow.”
According to HBI, home prices nationwide are expected to rise more slowly in 2020 than in 2019. It’s expected to see more local real estate markets shifting to favor buyers over the coming months. We expect 30-year mortgage rates to remain below 4%, on average, for the foreseeable future.
According to Mashinvestor, though no one can predict real estate market trends with complete accuracy, educated and thorough research can give us an idea of where things are headed. Overall, the US housing market predictions 2020 aren’t overwhelmingly pro-sellers or pro-buyers. This is basically good news all around in the US housing market. For buyers, prices aren’t going up at a steep rate they can’t keep up with. As for sellers, there’s a healthy group of buyers out there looking for a new property.
As a result, experts in the industry don’t expect a housing market bubble to cause the next recession in 2020 as the real estate market is a lot healthier. At the end of the day, it’s important to remember that housing conditions vary by market – the conditions might look good on the national level, but some areas offer better real estate opportunities than others.
Disclaimer: This story contains predictions and forecasts relating to home prices and other aspects of the housing market by several reputable sources. Those forward-looking views are the equivalent of an educated guess and should be treated as such. Rectrix Investments brings to the attention of its readers different viewpoints, but makes no claims or assertions about future housing conditions.
Sources:
http://www.homebuyinginstitute.com/news/will-the-housing-market-keep-rising/
https://www.mashvisor.com/blog/us-housing-market-predictions-2020/
https://www.reuters.com/article/us-usa-economy-watchlist-graphic/predicting-the-next-u-s-recession-idUSKCN1V31JE
https://www.zillow.com/research/when-is-the-next-recession-2020-24389/