December is finally upon us, so break out the peppermint lattes and gingerbread cookies…it’s time for 2020 predictions! Get ready for a steady stream of property prognostications, starting this week with Daryl Fairweather of Redfin boldly arguing that in 2020:
- Bidding wars will rebound thanks to low mortgage rates and a lack of homes for sale.
- 30-year fixed mortgage rates will stabilize at 3.8%.
- For the first time, Hispanic Americans will gain more wealth from home equity than white Americans.
- Climate change will become a bigger financial factor for homebuyers and sellers.
- Charleston and Charlotte will lead the nation in home price growth.
- More city streets will become car-free.
Rich Binsacca of Professional Builder released data last week, noting that “Optimism reigns as the home building industry enters a new decade.” Specifically, when builders were asked about their optimism for their local markets, they were overwhelmingly positive for 2020:
Julia Falcon of Housing Wire reports findings from Zillow that expect Baby Boomers to open back up the housing market as they vacate their homes starting in 2020: “About a third of homes in the U.S. are owned by those who are 60 and older. In the 2020s and 2030s, Zillow expects this generation will create a ‘Silver Tsunami,’ allowing for more homes on the market as they move out of those homes.”
Ben Lane of Housing Wire breaks news from a recent Freddie Mac forecast, stating that mortgage rates will stay low for the rest of 2019, and “well beyond that.” Specifically, Freddie Mac expects mortgage rates to stay close to 3.8% for all of 2020 and 2021.
A common theme among most experts is that low interest are here to stay at least heading into 2020—and perhaps beyond.
Finally, Fortune acknowledges that real estate took a PR hit in 2019 with WeWork’s failed IPO, but notes that “But don’t write off the real estate tech space altogether. Expect Amazon—which already knows a thing or two about acquiring property—to launch an AWS for office space and take over some of cash-strapped WeWork’s pricey leases.”
Sources: Stessa.com, Redfin.com, ProBuilder.com, December 2019.
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