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Housing Market in FY2020
We ringed into new decade and it’s almost 2 weeks into first month of 2020, the winter market is still dominant and going strong! As we look ahead of new year the one question starts coming to our mind – What to expect in FY2020 for real estate?
Back in FY2018-2019 we have seen strong and dominant trends; these effects of past two years will keep the real estate market still in boom or not? Looking back and predicting for real estate trends in FY2020 is not that tough. Will lesser inventory and lower mortgage rate make new year a modest housing market? the answer is simply YES!
If you think the housing market is beginning to slow down in winter months, that’s not the case the housing market is still booming in winter months! there are some pocket towns where home sales are going still stronger and competitive than last year. Some towns are still pretty strong as we call it as Seller’s Market, if this trend continues then housing market will be more competitive in 2020 with lower mortgage rates and lower inventory.
For 2020, the National Association of REALTORS® expects 10.6 percent more housing and researchers a 6 percent increase in single-family starts. On the flip side, the Urban Land Institute projected single-family starts to tumble 4.7 percent. According to Census data, construction in November spiked—an encouraging indicator. A strong job market and low mortgage rates should sustain the housing market in 2020. The problem will be finding enough homes for buyer.
Millennials will be aggressive Buying Homes
Yes, now the baby boomers are out this new generation is so busy and aggressive buying their first home, this particular demographic will be big buyers in 2020 – even if inventories are thin. That’s the millennials.
More Competitive Housing Market
We have seen bidding wars throughout 2018 and 2019, and the new year will be more competitive and aggressive than previous two year as the cool-down that began in the second half of 2018 comes to an end.
Mortgage rates are lower and stable through the mid-year of 2019 and that will revitalize the Spring/Summer market. Since Inventory is lower than expected, in 2020 buyers will have few homes to choose from. There will be fewer new construction homes than previous two years or so. And remember “More demand and less supply mean bidding wars will rebound!”
Will the renters become first time home buyers?
Will the renting still affordable in FY 2020? this one key factor will still be a key to millennials or renters alike.
As we are now few months away for the Spring Market, start your own homework. If you are buying home then get to know your finances, talk to your loan officer or bank and get moving.
If you are thinking of selling your home then check if any repairs need to be done, get it assessed. Changing fixtures or renovating small areas will help you sell, talk to your friends and family and decide on your next move.
Real estate market is getting crazy like our weather, undecided and unpredictable at all the times, you have to prepare for every situation. So, go ahead and start working on your home!
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