Experts are forecasting a balanced housing market for 2020.
Making yourself comfortable in a new home is still within reach.
Senior Loan Officer George Harsh leads the way in provided qualified professional consultations for interested homebuyers.
This article is part of a promoted series and not produced by the editorial staff.
If a new home is on your holiday wish list, buyers and sellers have reason to rejoice. Experts are forecasting a balanced housing market for the early months of 2020, making it a win-win for both buyers and sellers.
Low mortgage rates that are unlikely to increase, a reduced inventory along with slow-to-market new construction, and elevated home prices are all factors influencing current predictions.
While a balanced market can be advantageous for all types of homebuyers, it is an especially favorable time for current homeowners looking to make a move. These individuals or families can take advantage of low interest rates to invest in a larger home or a more affluent neighborhood, while also capitalizing on the low inventory that will allow them to list their current home towards the top of its value.
Selling for more, buying for less — even Old Saint Nick himself will have a hard time topping that.
Let’s take a more in-depth look at the factors influencing these balanced market predictions to see if they bear weight. Should these predictions hold true, you may not need Santa’s magic elves to make your dreams of a new home a reality.
Low Mortgage Rates
Throughout 2019, mortgage rates have steadily remained around or below the 4 percent mark for conventional 30-year fixed mortgages. These low rates are owed to economic uncertainty caused by a variety of factors, including tense international trade relations and a volatile stock market. Despite steadily low rates for the entire year, the reasons rates are low are highly unstable
While experts predict rates will continue to remain low in early 2020, buyers wanting to take advantage would be wise to act sooner rather than later. As the economy stabilizes, rates will likely tick up.
For now, however, these low rates mean it’s a great time for buyers because they can quite literally get more for their money. The less you are having to pay in interest, the more you can afford in terms of home price.
Low Home Inventory
Like all markets, the housing market operates on the principle of supply and demand. When fewer houses are available for sale, buyers must compete over the few existing houses on the market, which drives prices up. This is a seller’s market. When inventory is high, buyers can take their time and afford to negotiate a lower price, making it a buyer’s market.
While housing inventory of homes for sale has decreased steadily over the past four years, new home construction is finally beginning to bridge the gap. Still, these new construction homes aren’t coming available to market as quickly as needed to drive housing prices down.
In other words, home inventory will remain low in early 2020, allowing home sale prices to remain high, at least in the short term.
Elevated Home Prices
Due to the low volume of homes for sale and low rates, sellers have been able to keep prices elevated through 2019. And while prices aren’t predicted to significantly drop, price growth and appreciation are both slowing. This moderation in pricing and stabilization of home value appreciation further indicate a balanced market is likely for early 2020.
Whether you are interested in buying or selling or both, if you want help learning how to use these balanced market predictions to your advantage a qualified mortgage professional can help.