If one wanted to be really cute about it, one could sum up the 2020 property forecast in a few words, which would look like this. Low-interest rates, adjusted inventory of the housing stock, and continuous digitization of real estate transactions.
Digitization
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 innovate quickly. its technological offers to meet the expectations of a public more accustomed to a Venmo-type experience at Amazon. “Although Mr. Hundtofte adapts to stress the importance of technology, he loses the sense of thinking that companies are orienting their technology to appeal to a certain generational group when in reality the engine of technology is d 'Maximizing a company's resources with to please. The expectations of Wall Street, not Android obsessed consumers who are more concerned about their latte than other important life issues.
Adjusted inventory
As Daryl Fairweather, chief economist at Real Estate Brokerage Redfin, explains, “At the moment, we're not seeing a ton of new listings. Without more announcements in the market, there will be more competition from early 2020 and that will lead to more price pressure. ”And what that means is that more pressure leads to less movement. inventory, which leads to tighter inventory. Perfect if you own a home and sit on a ton of equity, not so good if you're looking to buy a home but stuck on the sidelines with little choice. Always a bridesmaid and never a bride? This is not a good place if you are genuinely looking to buy a house and cannot buy at your preferred price, and/or need to commit to the neighborhood you would like to live in, but cannot, the lack of movement in the housing market.
Interest rate
It will be very quick. Most economists predict 2020 will be between 3.7% and 3.9% for a 30-year mortgage, while some of the more optimistic economists expect the rate to drop further, perhaps shortly. sub-fork. 3.5% to 3.6%. At least that's what the doctors say who poked the pencil on Fannie Mae during her breaks to cool off in Washington, DC. This is good news for everyone, as lower rates will allow you to buy more home than you could have bought just a year ago, assuming prices haven't gone up as much. . If so, that means you are missing a dollar, a day behind.
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