– Home price growth will flatten, with a forecasted increase of 0.8 percent
– Inventory will remain constrained, especially at the entry-level price segment
– Mortgage rates are likely to bump up to 3.88 percent by the end of the year
– Tight inventory and rising mortgage rates will lead to dropping sales
– Buyers will continue to move to affordability, benefiting mid-sized markets
|Housing Indicator||Realtor.com 2020 Forecast|
|Mortgage Rates||Average 3.85% throughout the year, 3.88% by end of year|
|Existing Home Median Sales Price Appreciation||Up 0.8%|
|Existing Home Sales||Down 1.8%|
|Single-Family Home Housing Starts||Up 6%|
Buying a home in 2020 will offer opportunities for some buyers, as the supply of new homes relieves some of the inventory pressures, and prices moderate. While the inventory of new homes in 2019 remained focused on the high-end, as the luxury market cools, builders signaled their intent to increase offerings in the mid-price segment, a much-needed shift in market dynamics. First-time buyers will continue to struggle with affordability, even with mortgage rates in an approachable range, as entry-level inventory is expected to remain constrained. The broad price moderation will continue to offer opportunities in mid-sized markets in the Midwest and South.
Sellers in 2020 will contend with flattening price growth and slowing activity, requiring more patience and a thoughtful approach to pricing. Sellers of homes priced for entry-level buyers can expect the market to remain competitive and prices to stay firm. At the upper end of the price range, however, properties will take longer to sell, and incentives will be needed to close deals. As the market moves toward a more balanced scenario, sellers who adjust to local market conditions can expect to benefit from continuing demand.
Well informed homeowners choose The Fontaine Homeselling System to obtain them top dollar faster, along with a stress free experience. We know buying or selling a home can be very stressful and emotional, but when you have an experienced, top-producing agent on your side, you are more likely to have a smooth and successful home sale. Contact one of our agents today to start discussing the process of selling your home and/or finding your forever home!
Fontaine Family Team
Auburn - 207-784-3800
Scarborough - 207-289-3830
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