2020 Projections

By
Real Estate Agent with Keller Williams Realty - Topsfield, MA 92593-B

These are always interesting. For 2019 our little town of 8700 we had an increase in the number of closed sales from 100 in 2018 to 113 in 2019 a 13% increase. I fully expect 2020 to be a GREAT YEAR for people looking to buy and sell. As far as a potential recession all I have to say is markets go up and markets go down. The same holds true with economies. People buy and sell in ALL markets. 

 

The 2020 Real Estate Projections That May Surprise You

The 2020 Real Estate Projections That May Surprise You

This will be an interesting year for residential real estate. With a presidential election taking place this fall and talk of a possible recession occurring before the end of the year, predicting what will happen in the 2020 U.S. housing market can be challenging. As a result, taking a look at the combined projections from the most trusted entities in the industry when it comes to mortgage rateshome sales, and home prices is incredibly valuable – and they may surprise you.

Mortgage Rates

Projections from the experts at the National Association of Realtors (NAR), the Mortgage Bankers Association (MBA), Fannie Mae, and Freddie Mac all forecast mortgage rates remaining stable throughout 2020:The 2020 Real Estate Projections That May Surprise You | Keeping Current MattersSince rates have remained under 5% for the last decade, we may not fully realize the opportunity we have right now.

Here are the average mortgage interest rates over the last several decades:

  • 1970s: 8.86%
  • 1980s: 12.70%
  • 1990s: 8.12%
  • 2000s: 6.29%

Home Sales

Three of the four expert groups noted above also predict an increase in home sales in 2020, and the fourth sees the transaction number remaining stable:The 2020 Real Estate Projections That May Surprise You | Keeping Current MattersWith mortgage rates remaining near all-time lows, demand should not be a challenge. The lack of available inventory, however, may moderate the increase in sales.

Home Prices

Below are the projections from six different expert entities that look closely at home values: CoreLogicFannie Mae, Ivy Zelman’s “Z Report”, the National Association of Realtors (NAR), Freddie Mac, and the Mortgage Bankers Association (MBA).The 2020 Real Estate Projections That May Surprise You | Keeping Current MattersEach group has home values continuing to improve through 2020, with four of them seeing price appreciation increasing at a greater pace than it did in 2019.

Is a Recession Possible?

In early 2019, a large percentage of economists began predicting a recession may occur in 2020. In addition, a recent survey of potential home purchasers showed that over 50% agreed it would occur this year. The economy, however, remained strong in the fourth quarter, and that has caused many to rethink the possibility.

For example, Goldman Sachs, in their 2020 U.S. Outlook, explained:

“Markets sounded the recession alarm this year, and the average forecaster now sees a 33% chance of recession over the next year. In contrast, our new recession model suggests just a 20% probability. Despite the record age of the expansion, the usual late-cycle problems—inflationary overheating and financial imbalances—do not look threatening.”

Bottom Line

Mortgage rates are projected to remain under 4%, causing sales to increase in 2020. With growing demand and a limited supply of inventory, prices will continue to appreciate, while the threat of an impending recession seems to be softening. It looks like 2020 may be a solid year for the real estate market.

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

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Topic:
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FOR SALE BY OWNER - MARKETING(FSBO)
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Tags:
interest rates
sales
recession
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buyer
inflation
mortgage rates
2020
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Rainmaker
2,134,930
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good evening Doug Dawes - I am sure that 2020 is going to be a good year for home sales.

Jan 02, 2020 03:37 PM #1
Rainmaker
3,402,473
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Great information Doug and I think 2020 is going to be a great year in our field.

 

Jan 02, 2020 05:09 PM #2
Rainmaker
854,352
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Grant Schneider 

On this, you and I are on the same page. There is much pent up demand.

Jan 03, 2020 07:59 AM #3
Rainmaker
854,352
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Yes it will be Will Hamm.

My little town saw a 13% increase in closed sales for 2019

Jan 03, 2020 08:00 AM #4
Rainmaker
600,955
Sally Crane
WMS - Unity, WI
Woodland appraisal support.

Thanks for the update, all the best to you as you get many of these properties listed and sold.

Sally

 

Jan 07, 2020 12:53 AM #5
Rainmaker
854,352
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Sally Crane 

Thanks for stopping by and wishing you the same

Jan 07, 2020 08:19 AM #6
Rainmaker
4,314,507
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, looks like your town will do well in 2020, and my lenders say they don't expect the rates to move much this year, due to the election.

Jan 12, 2020 08:36 AM #7
Rainmaker
854,352
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Joan Cox 

It should be a good year and much buyer competition as our inventory is at 1 month

Jan 14, 2020 04:53 AM #8
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