Whether you’re looking to sell or buy a home this year, it’s important to look at your local real estate market in addition to national trends as predictions can vary from area to area.
At the end of the day, no one really knows how things will work out with home prices, interest rates, and inventory but here’s what we’re keeping our eyes on in the housing market as 2020 progresses:
More Inventory Struggles
The low housing inventory has been a pain point for many home buyers across the U.S. over the past few years. In fact, the supply of houses hit an all-time low in 2017 and still hasn’t bounced back. Because of this, home prices increased and many home buyers were caught in bidding wars.
There’s still a lot of work to be done to relieve the stress of finding a home for first-time home buyers—inventory for this market is expected to remain tight nationally throughout the year. It’s predicted that one in four offers will face bidding wars in 2020 compared to only one in 10 in 2019.**
Home Prices
In short, home prices are expected to rise on a national basis in 2020 but at a slower pace than in year’s past. This slowdown may bring some relief to home buyers, especially as employment numbers remain strong and there’s a healthy wage growth. Even with rising house prices in most areas, experts are predicting the number of homes sold this year will be equal to or exceed 2019.**
Interest Rates
Low interest rates have been the norm for the past 10 years so it can be alarming to see rates rise. We completely understand that fluctuating interest rates are always a hot topic for potential home buyers! As we all know, interest rates are unpredictable and can be difficult to pin down.
You can always protect yourself from the rise and fall of rates by becoming Rate Secured. You’ll be able to secure a low interest rate at no additional cost, cap your rate for up to 90 days while you shop for a home, and have the option to reset the rate for another 90 days if you don’t find a home in the initial 90-day period. No need to try and predict the market with this great program securing your mortgage savings.
Millennials Are Making an Impact
Millennials (anyone born between 1980 and 1998) will make up about 50% of home buyers in 2020 (up from 37% in 2019***).
What All of This Means
Take note of what’s going on in the housing market on a national level, but more importantly watch home prices in your local area to see if prices are moving higher or lower depending on demand or inventory levels.
If you’re looking for a home in the next 90 days, it’s smart to become a Churchill Certified Home Buyer and get Rate Secured so you stand out from your competition. This allows you extra time to look for the right home without worrying about interest rates or your monthly payment rising.
Remember to keep in contact with a Churchill Home Loan Specialist in your area so you can stay informed with interest rate movements and have a guide to walk you through the mortgage process.