PR Newswire
SANTA CLARA, Calif., Dec. 4, 2019
SANTA CLARA, Calif., Dec. 4, 2019 /PRNewswire/ -- At a time when millennials are reaching key life milestones, the U.S. housing market will continue to slow in 2020 as inventory reaches historic lows and economic uncertainty prompts consumers to pull back on their spending, according to the realtor.com® 2020 housing forecast released today.
The forecast predicts that despite some relief from new construction, moderating home prices and relatively low interest rates, first-time buyers will continue to struggle with affordability. Sellers will contend with flattening price growth and slowing activity. These trends will drive existing home sales down 1.8 percent to 5.23 million.
Highlights of the realtor.com® 2020 forecast include:
"Housing remains a solid foundation for the U.S. economy going into 2020," said George Ratiu, senior economist at realtor.com®. "Although economic output is expected to soften – influenced by clouds of uncertainty in the global outlook, business investment and trade – real estate fundamentals remain entangled in a lattice of continuing demand, tight supply and disciplined financial underwriting. Accordingly, 2020 will prove to be the most challenging year for buyers, not because of what they can afford, but rather what they can find."
What will 2020 be like for buyers?
Buying a home in 2020 will be a mixed bag. It will offer more opportunities for some as the supply of new homes begins to offset inventory pressure that has built over the last four years, interest rates remain reasonable and home prices flatten. The broad price moderation will continue to make mid-sized markets in the Midwest and South attractive. However, the construction of new homes in 2019 was largely isolated to upper-tier of housing and that is unlikely to ease conditions for first-time homebuyers. Additionally, while qualifying for a mortgage could be easier on paper due to stabilizing prices and a still relatively low rate environment, the total number of homes available for sale will hit a record low.
What will 2020 be like for sellers?
Sellers in 2020 will grapple with dormant price growth and slowing activity, which will require a greater level of patience and a thoughtful approach to pricing. Entry-level home sellers can expect steady competition for their homes, which will keep prices firm. Upper-tier housing is expected to be softer as properties will likely sit on the market longer, requiring greater incentives to close deals. As the market moves toward a more balanced scenario, sellers who adjust to local market conditions can expect to benefit from continuing demand.
Forecasted key 2020 housing trends
Realtor.com® 2020 Housing Market Forecast
Mortgage Rates | Up to 3.88% by year end |
Existing Home Median Price Appreciation | +0.8% |
Existing Home Sales | -1.8% |
Single-Family Home Housing Starts | Up 6% |
Homeownership Rate | 64.6% |
Sale and Price Forecast for 100 Largest Markets
Area | Sales | Price |
United States | -1.8% | 0.8% |
Akron, Ohio | 2.6% | 0.0% |
Albany-Schenectady-Troy, N.Y. | -0.5% | 2.3% |
Albuquerque, N.M. | -0.2% | 0.9% |
Allentown-Bethlehem-Easton, Penn.-N.J. | 2.3% | 0.4% |
Atlanta-Sandy Springs-Roswell, Ga. | -3.5% | 4.5% |
Augusta-Richmond County, Ga.-S.C. | -4.2% | 2.1% |
Austin-Round Rock, Texas | -2.8% | -0.2% |
Bakersfield, Calif. | -0.3% | -1.4% |
Baltimore-Columbia- Towson, M.D. | -0.1% | -0.3% |
Baton Rouge, La. | -1.6% | 0.4% |
Birmingham-Hoover, Ala. | -1.3% | -1.1% |
Boise City, Idaho | 0.3% | 8.1% |
Boston-Cambridge-Newton, Mass.-N.H. | -2.1% | 1.2% |
Bridgeport-Stamford- Norwalk, Conn. | -4.1% | 4.8% |
Buffalo-Cheektowaga- Niagara Falls, N.Y. | 2.6% | -2.2% |
Cape Coral-Fort Myers, Fla. | 0.0% | 2.6% |
Charleston-North Charleston, S.C. | 1.2% | 1.9% |
Charlotte-Concord- Gastonia, N.C.-S.C. | 0.4% | 0.1% |
Chattanooga, Tenn.-Ga. | 2.0% | 3.6% |
Chicago-Naperville-Elgin, Ill.-Ind.-Wis. | -0.9% | -0.3% |
Cincinnati, Ohio-Ky.-Ind. | 1.3% | 0.3% |
Cleveland-Elyria, Ohio | 2.6% | 0.4% |
Colorado Springs, Colo. Werbung Mehr Nachrichten zur News Corp B Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News |