Realtor®

2020 Market Predictions

2020 Market Predictions

by | Feb 3, 2020 | Uncategorized

Housing Market 2020 Predictions After a cooling-off period in 2019, home prices regained momentum and are expected to further increase in 2020. How much? A cohort of economists at the National Association of Realtors Forecast Summit predicts a 3.6 percent rise; ULI predicts 2.5 percent, Zillow estimates 2.8 percent and Realtor.com 0.8 percent. The California Association of Realtors (CAR) believes the median home price in California likely will increase by 2.5% to $607,900 in 2020, slowing from a projected 4.1% annual gain in 2019. The group predicts sales of existing single-family homes will increase 0.8% in 2020 to reach 393,500. While low mortgage rates make it easier for buyers to afford homes, this is being offset by the possibility of an economic contraction due to international trade concerns, said Jared Martin, president of CAR. “Buyers have more purchasing power than in years past, but they may be reluctant to get off the sidelines because of economic and market uncertainties.” “California’s housing market will be challenged by changing migration patterns as buyers search for more affordable housing markets, particularly by first-time buyers, who are the hardest hit, moving out of state,” said CAR Senior Vice President and Chief Economist Leslie Appleton-Young. “With California’s job and population growth rates tapering, the state’s affordability crisis is having a negative impact on the state economically as we lose the workers we need most such as service and construction workers, and teachers.” What are the experts saying? “Housing remains a solid foundation for the U.S. economy going into 2020. Although economic output is expected to soften—influenced by clouds of uncertainty in the global outlook,...

2019 Housing Market Forecast

by | Jul 16, 2019 | Uncategorized

CALIFORNIA Inventory Improving, Affordability Deteriorating High home prices and eroding affordability is expected to cut into housing demand and contribute to a weaker housing market in 2019, and the volume of homes sold in 2018 will register lower for the first time in four years, according to the California Association of Realtors (C.A.R.) housing forecast. The California median home price is forecast to increase 3.1 percent to $593,450 in 2019, following a projected 7 percent increase in 2018 to $575,800. C.A.R. forecasts a modest decline in existing single-family home sales of 3.3 percent next year to reach 396,800 units, down from the projected 2018 sales figure of 410,460.  “While home prices are predicted to temper next year, interest rates will likely rise and compound housing affordability issues,” said C.A.R. President Steve White. C.A.R.’s forecast projects growth in the U.S. Gross Domestic Product of 2.4 percent in 2019, after a projected gain of 3 percent in 2018.  The average for 30-year, fixed mortgage interest rates will rise to 5.2 percent in 2019, up from 4.7 percent in 2018 but will still remain low by historical standards. “The surge in home prices over the past few years due to the housing supply shortage has finally taken a toll on the market,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. Abridged from C.A.R. 2019 Housing Market Forecast   NATIONAL Existing-Home Sales to Stabilize and Price Growth to Continue Consumers should expect home sales to flatten and home prices to continue to increase, though at a slower pace, according to the National Association of Realtors (NAR).   “Ninety percent of markets are...