The Predicted Rise of Home Prices in 2020

by Alan Blackie 03/15/2020

Image by Nattanan Kanchanaprat from Pixabay

The housing market has posted relatively good numbers over the past few years, even if the average percentages aren't exactly sensational. You may already know that we saw a decrease in growth in 2019, with housing prices rising at 3.3% compared to 2018's rise of 5%. Given the state of the economy and the trends of the past, we'll look at how 2020 is shaping up. 

A Short Dip 

Experts are predicting that home prices will rise 2.8% this year. So if you're getting ready to sell your home, hopefully you're seeing the cumulative effects of steadily rising prices. If your neighborhood hasn't followed the trends though or you've only recently purchased the property, there are a few more factors to take into account before putting your home on the market. 

Listing & Offers 

While the home prices may not be exploding, the creep is still being felt by buyers. In the average area, buyers could be dealing with a price increase of 11.1% in less than three years. This kind of influx could lead to fewer buyers, which ultimately leads to fewer offers. Prioritizing the listing and initial price of the home will have a major impact on the quality of your buyers. 

Interest Rates in 2020 

Rates have been dropping over the past year, going below 4% for most loans. With the average rates for a 30-year mortgage hovering around 3.7% (3.2% for a 15-year mortgage), this is good news for buyers (and sellers if they're planning to buy again too). However, if trade wars ramp up again, we could see the Federal Reserve move those rates back up, so sellers should keep an eye on the news.

The Story of Equity 

As you can see, the news is still relatively good for home sellers in 2020, especially considering the relative state of debt in this country. Experts do not predict a decrease in equity for the new year, a sure sign that the economy is doing well enough to support rising home prices. 

There's plenty of good news for the new year for home sellers, even if it's laced with the fear of a tumbling economy. Real estate professionals are seeing spikes nearly everywhere in the country, regardless of neighborhood. So even if you're not near the best amenities in your city or town, you may still be able to sell for the price you want. As the year progresses, keep an eye on your area, who's buying, and how prices are scaling. 

About the Author
Author

Alan Blackie

Personal My personal credo is simple: Treat others as you would wish to be treated. I also carry this into my business life. As a result you can expect me to work with you to maximize the value of the time we spend together and the price finally agreed in our transaction. I will talk with you not to you. I will answer your call or communication in a prompt and courteous fashion. I will exercise unerring commitment to service while, showing empathy with your needs and goals. A Norwalk resident since 2002. Education Educated in England to HNC in Electro-Mechanical Engineering Therfield County Secondary School: Surrey to GCSE, A Level Carshalton College Surrey: Electro-Mechanical Engineering to HNC. Dale Carnegie London UK: Effective Communications & Human Relations/Skills for Success. Professional Association Member of New Canaan Multiple Listing Service. Member of Greater Fairfield County Multiple Listing Service. Mid-Fairfield County Board of Realtors - Member. Connecticut Association of Realtors - Member. National Association of Realtors - Member. Community Involvement Person to Person Open Door Shelter Norwalk Land Trust - If you are actively looking to buy homes or sell property in the Coastal Fairfield County area, feel free to call me at (203) 219-9510, 8.00am through 8.00pm EST alternatively email or text anytime. Residential Sales, Residential Listings, Exceptional Properties, First Time Home Buyers, Corporate Relocations, New Construction, Investors. Areas Covered: Coastal Fairfield County including but not limited to - Norwalk, Rowayton, Stamford, Trumbull, Fairfield, Westport, Wilton, Weston Thanks for stopping by. Feel free to reach out with any real estate related questions or requirements that you may have. Licensed in CT #RES 0765024