If someone wanted to be really cute about it, they could sum up the real estate predictions for 2020 in just a few words, which would be as follows. Low interest rates, tight home inventory, and the continued digitization of real estate transactions.
According to Sean Hundtofte, chief economist at online mortgage lender Better.com, “In 2020, we will continue to see Millennials increase their share of the mortgage market, which in turn will serve as a catalyst for lenders to continue to rapidly innovate their offerings. technologies to meet the expectations of an audience more accustomed to an Amazon-like experience, Venmo.” Although Mr. Hundtofte adapts to point out the importance of technology, he misses the point when thinking that companies gear their technology to please a certain generational group, when in fact the engine of technology is to optimize the resources of a company with in order to please the expectations of Wall Street, not the Android-obsessed consumers who are more concerned with their latte than with other important matters of life.
As Daryl Fairweather, chief economist at real estate brokerage Redfin, explains, “Right now we’re not seeing a ton of new listings. Without more listings on the market, there will be more competition starting in early 2020 and that will lead to more pressure.” of prices”. And what this will mean is that more pressure leads to less inventory movement, which leads to tighter inventory. Great if you’re a homeowner and have a ton of capital, not so great if you’re looking to buy a home but get stuck with not much to choose from. Always bridesmaid and never bride? Not a good place to be if you’re sincerely looking to buy a home and can’t buy at your preferred price, and/or have to compromise on the neighborhood you’d like to live in, but can’t afford lack of movement in the market real estate.
This will be very fast. Most economists predict that 2020 will remain in the range of 3.7% to 3.9% for a 30-year mortgage, while some of the more bullish economists expect the rate to fall further, perhaps into the subrange. from 3.5% to 3.6%. That’s at least what Fannie Mae doctoral students say during their water breaks in Washington, DC. This is good news for everyone, as the lower rates will allow her to buy more home than she could have just a year ago, assuming prices haven’t gone up as much. If so, that means you’re a dollar short, a day late.