In 2020, the housing market is expected to heat up. Low mortgage rates are likely to boost the buyers’ market, resulting in increased competition as the housing stock of the nation continues to decline due to several factors, including rising tenure length. In general, this means that home buyers might have fewer options for home buying.
There will be fewer homes for the buyer to choose from in 2020 than they will have in five years. This predicts that nearly one out of four houses would face a bidding war in 2020 compared to only one out of ten in 2019. In the first half of the year, this competition increase is likely to hike annual price growth up to 6%, which is significantly stronger than the 2% growth seen in the first half of 2019.
Fast price increase and raised competition will allow more homeowners and developers to list homes, helping to improve the supply-demand balance by the end of the year. As a result, demand and supply will be balanced by 2020 with existing and new homes getting into the market allowing price growth to slow to 3%.
In a lattice of continuing demand, stable supply, and prudent financial underwriting, real estate dynamics remain intertwined. 2020 is going to be the most challenging year for consumers, not because of what they can afford, but rather because of what they can find.
The best way to prepare for the expected changes in the housing market is to get a home mortgage as soon as possible. Mortgage 2020 rates are expected to be lower than they were in 2019, and buyers should take that opportunity to get a house while they have increased buying power.
Fellowship Home Loans is a home lender that is proud to always do the right thing for their clients and those who follow them on the radio. We work tirelessly to find the right product for the needs of each customer. When doing so, we provide multiple choices and take the time to clarify benefits and disadvantages so that consumers can make informed decisions about their home loans.
Unlike some lending firms, our honesty and integrity are a key part of our full commitment to getting consumers into their dream homes by financing that is right for their lifestyle. Contact us today to learn more!