As 2019 comes to a close, the trends of the real estate market for the past year are being reviewed an analyzed. However, just as it is with all new beginnings, there is also much anticipation and speculation about what 2020 will bring for real estate professionals, home owners and potential homeowners. Unfortunately, some real estate experts are not seeing much change in the low housing inventory trend in the coming year.
In an article published by Forbes, written by Aly J Yale, Yale states, “…According to the 2020 National Housing Forecast from Realtor.com, the national housing shortage will continue in the New Year, possibly reaching “a historic low level.” Inventory growth is absent in nine out of ten markets, down from a much more optimistic two of three markets seeing growth at the beginning of 2019.
Contributing to the problem, homeowners are remaining in their homes longer, averaging 13 years. Additionally, although home construction has seen growth, most of the new homes are “upper-tier” homes. This leaves entry home buyers little supply in contrast to the large demand. With homes for sale in the lowest price tier down 10 percent through 2019.
Some positive news to look forward to are the anticipation of mortgage rates remaining low and home prices remaining steady, maybe declining in some markets.
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Photo Credit: Mark Moz