2020 Housing Market Recap For Move Up Buyers

2020 Housing Market Recap For Move Up Buyers
Imagine if right now, you could have all the answers as to what will happen in 2020.  Who will be our next president, will mortgage rates stay low, is Cassidy the mother of Kevin’s child (This Is Us reference)?

Unfortunately, even the most reputable sources cannot tell you with 100% certainty as to what is going to happen in 2020, especially when it comes to the housing industry.   At the beginning of last year, a few sources said that rates might go up in the first half of the year.  In reality, mortgage rates fell in the first half of 2019. 
2019 Mortgage Rates
Photo Credit: Freddie Mac

When looking at the 2020 predictions, there are a lot of reports out there, but they all seem to have a similar consensus.   So, to help clarify the message for move-up buyers (those selling and buying at the same time), or even those considering buying their first home this year, here is a brief recap of what most are predicting.

Mortgage Rates: 
Almost all are predicting that mortgages rates will stay fairly consistent throughout the year.

Existing Home Inventory:
Almost all are predicting low existing home inventory for next year.  While this is good news for home sellers, this is not great news for home buyers, as this means you are looking at a fast-moving and competitive market.   
This problem is why we created Selling Later, as you should have more time to find a buyer and find your dream home.  You shouldn’t have to buy the home you ‘had to buy because you sold your house and it was the only one you sort of liked that accepted your offer, but you don’t really love it.’  If you are paying for something for 15 to 30 years, you should LOVE it, not like it.

New Construction:
With a good 2019, new construction is looking to continue to have another good year in 2020.  However, some are shifting their focus on the need for more starter homes instead of luxury homes. 

Popular Cities:
If you live in these cities, they are predicted to have the most notable home sales and price growth in 2020.   
Boise, ID – Mission, TX – Tucson, AZ – Chattanooga, TN – Columbia, SC – Rochester, NY – Colorado Springs, CO – Winston-Salem, NC – Charleston, SC – Memphis, TN – Salt Lake City, UT – Phoenix, AZ – Knoxville, TN – Cleveland, OH – Spokane, WA – Orlando, FL – Allentown/Easton, PA – Honolulu, HI – Akron, OH – New Haven, CT – Portland, ME – Fort Myers, FL – Raleigh, NC – Seattle, WA – Tampa, FL 

Millennials, they are coming for you:
Reports show that millennials made up 37% of the home buyers in 2019.   So, millennials, get ready for the industry to become your new best friend and have your social feeds be inundated with ads for all things real estate. 

Our Prediction for 2020:  Sellers and buyers take back control
(gets on soapbox)
At Selling Later, we believe home sellers and buyers should be given these simple, common sense things in 2020.
  • Make It Better, Not More Expensive:  If the industry relies on your home sale to survive, and a lot of people profit from your sale, then why don’t you have more say on the how and when of your transaction?  Why are programs being developed that offer convenience, but at more costs to sellers and buyers, when all they really need is more time? 
  • More Time: If you know now that you want to sell in the Spring, you should be able to do something about it now.  You shouldn’t have to sit around and wait until you enter the market and then have only 60 days to sell and compete to buy your next home.  
  • Less Fear: You shouldn’t have to fear carrying two mortgages if you find a home, but your current one hasn’t sold yet.  
  • Don’t Count Days: Your home should be viewed based on the month you want to sell, not by how many days it has been sitting on a website.  
  • Public Knowledge: The best agents in the industry already know who is going to sell their home in the Spring and Summer, but wouldn’t that information be helpful if it were public knowledge for everyone?
  • Stop Using Buyers as Paid Sales Leads: Your inquiry on a home should be sent to the person managing the home sale, not some third party that paid a lot of money for your contact information so they can use it as a sales lead.
  • Do Something Better: Your home post gives back to small nonprofits so we can do some good in the community, while also gaining you time in real estate. 

Whether you are buying, selling, both, or just reading this for fun, we hope that you have a positive 2020 filled with amazing predictions that actually come true!

Ps. We think Justin’s fiancé is Madison, but we wish it would be Zoe or Sophie

For more in-depth information, here are the articles we reviewed:
Freddie Mac Economic & Housing Research
US News & World Reports
CNBC
Marketwatch