Our Predictions for the 2020 Real Estate Market
Here are the top five real estate trends that you need to keep an eye out for as 2020 unfolds.
It’s officially 2020—a new year with new expectations. This applies to life in general, but also to the real estate market. What trends can we expect from the housing market as the year progresses? Here are my top five trends to watch for this year:
5. Even if there is a recession, we don’t expect real estate prices to be affected. In the last five recessions, real estate prices mostly stayed flat or increased—the exception being the economic recession of 2008, which was caused by the mortgage crisis.
4. Inventory will remain incredibly low. We may even see some bidding wars, especially single-family homes that are located in desirable areas, in great condition, and priced well. We may not see it as much with other properties, like the more plentiful condos or townhomes, but don’t be surprised if you see some bidding wars in 2020.
3. Mortgage rates will remain stable. Rates aren’t expected to go much below 3.5% or above 4.1%. We don’t see any major economic factors causing it to swing higher or lower than that range.
2. Millennials will continue to be the biggest group of homebuyers. Millennials account for over 50% of mortgages. Right now, especially here in Seattle, there is extensive hiring of talented tech workers in the age range of 30 to 40, which is a peak home buying demographic of millennials.
"Don’t be surprised if you see some bidding wars in 2020."
1. Home prices across Seattle will increase by 5% to 6% on average. Of course, this depends on the neighborhood and the type of property, but I expect to see this average increase in home prices because of our continued low inventory, the increased demand, and the fact that home prices here have been flat for the past couple of years. Now we’re seeing a lot of opportunity for buyers to ride the future growth anchored by companies like Facebook, Google, Amazon, and Microsoft hiring millennial talent.
So what does this all mean?
Well, if you’re a buyer who’s been thinking of hopping off the sidelines and investing in Seattle, I’d recommend you move sooner than later. Rates are low, inventory is going to start hitting the market quickly, and we haven’t seen much competition because so many buyers are still on the sidelines. Get out there soon and snatch up all the great inventory as it hits the market, take advantage of our low rates, and beat the competition.
If you’re a seller thinking about upsizing, downsizing, or cashing out on your investment, there are already buyers in the market waiting for your properties. Take the proper steps; if you hire the right agent to advise you and market your home, you may even whip up a bidding storm if it’s properly marketed in a great neighborhood.
Every situation is different, so if you have any questions about your particular area or circumstances, don’t hesitate to reach out to us. We’re always happy to help.