2020 Real Estate Predictions
By Kelly Leighton | Dec. 31, 2019 | 2 min. read
Will 2020 be the year of the millennial homebuyer?
Realtor.com® predicts yes. The site predicts that millennials will make up more than half of all mortgages by spring 2020. What is it about this year that is encouraging millennials to finally buy? Nearly 5 million are turning 30, and the older millennials are reaching 39, meaning the younger millennials most likely will be looking to buy their first home, while the older millennials will be looking to move on from their starter home to their family homes.
“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.”
However, low inventory may continue to be a problem in 2020. It is predicted that first-time buyers will struggle to find homes, while older sellers will be hesitant to list, continuing the cycle. The building of single-family homes should rise by 6%, helping to combat some of the demand, but not all of it. Meanwhile, existing home sales are expected to drop 1.8%, while the average median home price is predicted to rise 0.8%. Mortgage rates will stay under 4%, reaching 3.88% by the end of 2020, the site predicts.
Homeownership rate should remain consistent, at 64.6% in 2020.
Topicshousing market millennials
Subscribe To JustListed Daily Emails
You’ll be the first to know about real estate trends and various legal happenings. Stay up-to-date by subscribing to JustListed.