If anything, the housing market is unpredictable. It’s impossible to say what will happen at any given time. However, real estate experts can make predictions on the housing prices for upcoming years. Learn whether or not the experts think housing prices will go down in 2020.
Unless you have a crystal ball, you can’t be certain what will happen with the housing market in 2020. But there have been some interesting trends that have led the experts to make certain statements.
For instance, home values in the U.S. have increased by 5,2% in a one year period. Based on those numbers, some expect home prices to rise by 2.2% in 2020. By looking at some of the past statistics, it’s possible to make an educated guess on the future.
Although prices are expected to rise, the rise is not predicted to be as significant as it has been during the past few years. In one press release from S&P Dow Jones Indices made in July of 2019, it was reported that the rate of home price increase had slowed down throughout the U.S.
This makes it seem as if the trend will continue as 2020 approaches. However, the news isn’t necessarily bad or signs of a recession. The economy could benefit from a small slowdown in home price increases. Because the value of homes has been increasing so much, many buyers have been finding it difficult to purchase homes. If prices slowly rise, they have a better chance of being able to afford homes.
It’s expected that 2020 will start to favor buyers more than sellers. Additionally, it’s possible that 30-year mortgage rates will stay under 4%. This makes it even easier for prospective buyers to afford a home.
To better understand the future, you need to look at the past. In the early 2000s, the housing market was exploding. Builders across the country were building new homes and home prices were on the rise. Unfortunately, that changed in 2005. Many people had relied on high-risk mortgages and could not afford their homes. This made the market start to suffer and eventually contributed to the collapse of the market in 2008. Throughout the country, prices dropped and the economy started to crumble.
Between 2008 and 2011, home prices were still dropping in most U.S. cities. The market showed no signs of recovery until 2012. At that point, home prices increased at a steady rate. In some areas, the increase was rapid and people were finding it difficult to afford new homes.
By early 2019, the economy was looking better. Unemployment was down and the real estate market was starting to balance out. It’s taking longer for homes to sell and more sellers are being forced to make price reductions.
Don’t let the nationwide predictions fool you. Every city has its own real estate climate, and not all cities will see a decrease in the rise of home prices. For instance, home prices in Seattle decreased in 2019. Florida has always had a very unique real estate market, making it difficult for you to rely on national predictions.
If you’re interested in learning more about your local trends, your best bet is to speak with an experienced real estate agent. Yuliya Kachko Group is ready to assist you with all of your real estate needs.