It’s that time of the year again.
With 2019 coming to an end, real estate predictions for 2020 are rolling in left, right and center. Seeing that the real estate market went through more than a few changes in 2019, the next year is bound to be full of rapid developments that are sure to spark your interest. That is, if you are looking to invest in the housing market anytime soon.
But even if you do not have any plans to put your money towards real estate within the next year or so, knowing about these housing market predictions for 2020 is still a very interesting subject. After all, it doesn’t only provide you with a vision for what’s to come for the real estate market, but it also tells you what you can expect to happen in corresponding sectors. To help you keep up with the latest trends, here are some of the most exciting real estate predictions for 2020.
1. Mortgage Rates Will Drop
Remember how we said it will be a good time to invest into the housing market? According to the Mortgage Bankers Association, the mortgage rates for the overall housing market are set to remain on the lower end. Some experts have also went on to state that the mortgage rates might even drop further than they have in 2019.
This is one of the most important housing market predictions for 2020. Simply put, this projection means that housing will be more affordable than it was until a while ago, opening more doors of opportunities for new homebuyers.
2. Refinancing Will Increase
Due to the lower interest rates on mortgages, homeowners can expect to benefit from more refinancing opportunities. This is something that will have significant effects on the housing market and spark an increased level of activity throughout the sector.
But according to experts and the larger study of real estate predictions for 2020, this refinancing trend may go on for only the first half of the year. This means that if you are looking to refinance your mortgage, this will be a good time to start preparing for it.
3. Prices Will Increase
While mortgage rates are set to decrease in 2020, experts are projecting that the overall pricing of the housing market will increase. This is another significant part of the housing market predictions for 2020.
This means that if you are aiming to benefit from lower mortgage rates in the upcoming year, you may need to account for those savings in housing costs. In order to find deals that strike a balance between these factors, it will be wise for you to go through an experienced realtor while also practicing your own due diligence during the house-hunting process.
4. Millennials Will Invest More
Millennials took the housing market by surprise by showing an active interest in real estate, especially towards the latter half of 2019. According to experts, this trend may continue well into 2020, with Baby Boomers and even Gen X trying to hold on to their own inventory.
As a result, this also means that the housing inventory will be scarcer than it has been for a while, and this factor may very well lead to higher competition between listings. If you are to find a house next year, then keeping this in mind will only be prudent.
With these real estate predictions for 2020, it seems that the housing market will see an upwards trend into the new year. If you are looking to make use of the opportunity or just need to understand how it might affect your existing housing unit, don’t hesitate from contacting us today for more information.