It’s impossible to predict the future, but here’s a look at where the real estate market stands at the beginning of 2020.
First-Time Buyers Toss Their Hats in the Ring
First-time buyers comprised 33% of all home buyers.3
Explained: Many older millennials (ages 29 to 38) are getting into the market.3
Bigger Picture: Low rates make a monthly mortgage more appealing than the monthly rent, encouraging young people to purchase a home and build equity.
Home Prices Continue to Rise
Home prices crept up slowly year-over-year in 2019.2
Explained: Inventory is still tight, contributing to a steady increase in prices. Bigger Picture: Despite this steady increase, historically low mortgage rates make the monthly payment more affordable.
Bigger Picture: Despite this steady increase, historically low mortgage rates make the monthly payment more affordable.
Existing Home Sales Looking Up
Existing home sales increased in 2019.1
Explained: Buyers took advantage of low interest rates, leading to more homes being sold.
Bigger Picture: It’s a good time for sellers, with homes spending about a month on the market.
The market is always changing — give me a call to get the latest!
2005 vs. 2020: Changing Times, Changing Markets
Many people are approaching this year anticipating another recession. However, times have changed, and there are quite a few differences between the years that led up to 2008 and today that may ease these concerns.
Don’t hesitate to call me with your questions on the state of the real estate market!
I’m honored to share more market updates and serve all of your buying and selling needs in the new year.
Source: 1National Association of REALTORS® Existing-Home Sales Data, October 2019. 2CoreLogic Home Price Index Report, October 2019. 3NAR 2019 Home Buyers and Sellers
Generational Trends Report. 4U.S. Department of Labor, Bureau of Labor Statistics, 2019. 5Seeking Alpha, “We’re Definitely Not in a Housing Bubble,” August 2017. 6Invest Four
More, “When Will There Be Another Housing Market Crash?” September 2019. 7U.S. News, “Your Guide to the Housing Market,” September 2019. 8The Mortgage Reports, “Report:
Home Equity Increases, but Borrowing Doesn’t,” July 2019.
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