Now that 2019 is coming to an end it’s time to share my predictions for the 2020 real estate market.
We’re just now pulling out of the 2018 midyear downturn, and low interest rates have helped with this. Low inventory has also helped. As of the recording this video, there were 335 active listings in our market. Normally, we see anywhere from 800 to 1,000.
With low inventory and low interest rates, we could potentially see bidding wars increase between buyers. More bidding wars and more buyer activity, in general, will incentivize builders and sellers to join the fray. This increase in builder and seller activity will serve to balance out the market toward the end of 2020. In a balanced market, the appreciation rate usually runs from 2% to 4%, and our market is expecting to see 3%. Once things balance out, it will be a safe time to buy or sell.
The word “recession” has been thrown around a lot lately, but only two out of the previous five recessions saw the national average home price drop, so a recession doesn’t automatically determine what our market will do. Since we have great interest rates and anticipate them to stay that way, we have a strong market for the foreseeable future.
If you have any more questions about where our market is headed in 2020, don’t hesitate to reach out to me. I’d love to help you.