Housing Market Trends 2020 will be the hottest topic in Mortgage and Real Estate blogs for at least a month as we transform from 2019 to 2020. Happy New Year from Palm State Mortgage Company to You!
Trends and blogs about those trends resound every New Year’s Eve. And that is true of any business sector. We are celebrating more than a New Year. We are marking a New Decade. Yes, for us, blogs full of housing market trends resound at this special time of the New Year. And naturally, Palm State Mortgage hopes they can help you find trends that transform you into a homeowner in the fresh new decade.
A New Year’s Verse to Welcome You to 2020
Before going into 2020 housing market trends, let us begin first with a Palm State Mortgage Company New Year’s Greeting. Ironically, however, the wish we are sending your way actually originated in the past. In 1893, George William Curtis greeted the custom New Year’s Day with a fitting New Year’s Eve Wish for Modern Times:
New Year’s Verse for You
He wrote “It is the day of hope and a fresh beginning.
Old debts shall be forgiven…old friendships revived.”
And, referring to New Year’s Day, he added, “To‑day shall be better than yesterday. The good vows shall be kept. A blessing shall be wrung from the fleet angel Opportunity.”
Then he concluded, “There shall be more patience, more courage, more faith; the dream shall become life. To‑day shall wear the glamour of tomorrow. Ring out the old, ring in the new!”
Housing Market Trends for a New Year, New Decade, New You!
Each time we close out another year, we cannot help but ponder the future year. Pundits make their predictions, but we never really know exactly what the future will bring. Two things are outstanding in our minds here at Palm State.
1. The Housing Market will probably continue to have some inventory issues. You might not find as many choices out there in your house hunting as you’d expect.
2. We expect the interest rates to remain low and friendly both for refinancing and new homes. “Based on what is forecasted, we know that interest rates are projected to remain low and that appreciation is expected to continue as we move into 2020.
3. And we also think the upcoming election will “provoke many unique perspectives on the health of the US housing market.”
Certainly, one thing remains unchanged every year: The challenge of the housing market is totally comprehending what is happening. Based on that, you must position yourself financially.
The 2020 Housing Market and the Experts
Danielle Hale, Chief Economist at realtor.com, stated, “I think the biggest surprise from the forecast is how long the market is staying in this low inventory environment, especially as Millennials are in a major home-buying phase…” And she added that, on average across the United States, “sellers will contend with flattening price growth.” However, in some areas, she predicts slowing activity with existing home sales down 1.8%.
Marketing Trends: Different Ones for Different Targets
We do not dispute that low inventory will cause some problems in 2020, but we believe they will primarily be in one targeted area: the affordable/entry-level market. There are several reasons for the low inventory numbers.
1. Certainly, a lot of savvy would-be sellers are hanging on to their homes.
2. Experts have said, “The Gen X buyers are content to stay where they are for the moment,” Hale explains.
3. Empty nest syndrome is not discouraging Baby Boomers. They are enjoying their homes. “With existing homes, baby boomers have a lack of real reasons to sell. They are living longer healthier lives and aren’t rushing to downsize right now.”
Housing Market Optimism from Mike Fratantoni
Meanwhile, Mike Fratantoni, the Chief Economist at the Mortgage Banker Association (MBA) sees optimism in the near future.
He stated, “Interest rates will, on average, remain lower…These lower rates will, in turn, support both purchase and refinance origination volume in 2020.” Add this to our economic news of good wage growth and unemployment numbers. And you have key indicators for a healthy housing market, especially in Florida.
More Housing Market Optimism from Skylar Olsen, Director of Economic Research at Zillow
Likewise, Skylar Olsen, Director of Economic Research at Zillow agrees, saying, “If current trends hold, then slower means healthier and smaller means more affordable.
She stated that “consumers will continue to absorb available inventory and the market will remain competitive in much of the country.”
More Bright Optimism for the 2020 Housing Market
As we have said, historically Low-Interest Rates Rock 2020.
- “Thanks to historically low-interest rates — and cheap mortgage rates — home purchases are expected to continue to increase in 2020! This is according to a new forecast from the Mortgage Bankers Association.”
- Plus, The above mentioned Washington, D.C.-based organization estimated that mortgage originations will grow 1.6 percent next year. However, they proclaimed that is no small amount. That meager 1.6 actually means we go up to $1.29 trillion. It might be a tiny drop from 2019 which boasted the biggest gain since 2007 at $2.06 trillion.
- Isn’t it interesting how some pundits can see the same statistics and use them as bases for completely different predictions?
Where The Bargains Are: Housing Market in 2020
Advisers are saying that you should check out the housing markets in Ohio, Indiana, and Kansas for affordable homes for Millennials. In Cleveland, Ohio you will find there is now a median listing price of $135,000. Likewise, in Cleveland Heights, “a 1,394 square foot single family home with hardwood floors, remodeled kitchen with granite countertops and marble flooring is currently listed for $114,900.” More good news for the housing markets indicates that the Federal Reserve will reduce borrowing costs again.
Looking at the Big Picture for the 2020 Housing Market
Overall, at Palm State, we think you must look at the healthy housing market against the backdrop of the entire economic picture, not as a separate entity. So, our vision is decidedly optimistic, although the market in some areas will be more moderate than last year.
We think America still believes in homeownership. And we think folks are savvy enough to see the opportunities not only in low-interest rates but also in the newly invigorated economy.
A Final New Year’s Wish As We Open the Housing Market of 2020
In our next blog, we will expand our menu of housing market trends to an even larger extent. We think we might have some things coming that will surprise you.
Until then, Happy New Year! The owners and staff at Palm State Mortgage wish you…
“12 months of happiness
52 Weeks of fun and laughter
366 days of success,
8,784 hours of good health,
527,040 minutes of blessings and
31,622,400 seconds of joy…”
If you have seen this little verse previously, you might notice the numbers are a little different. That is because 2020 is a Leap Year. 366 days is not a typo! Happy New Year!