{"id":5856,"date":"2019-12-05T08:43:29","date_gmt":"2019-12-05T13:43:29","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=5856"},"modified":"2021-11-23T16:49:32","modified_gmt":"2021-11-23T21:49:32","slug":"housing-market-2020","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2019\/12\/05\/housing-market-2020\/","title":{"rendered":"Housing Market 2020"},"content":{"rendered":"\n
\"housing
Real estate market (infographic from keepingcurrentmatters.com)<\/figcaption><\/figure><\/div>\n\n\n\n

After the unexpected slowdown of existing home sales last fall, most real estate agents had optimism for the 2019 spring market.\u00a0 However, many were surprised by the early spring reporting of mixed housing data (when all indicators should have been positive).\u00a0 Although national stats for spring seemed to be pushing upward, some regional markets didn\u2019t perform as expected (Mid-Atlantic home sales declined at the beginning of the spring).\u00a0 What’s in store for housing market 2020?<\/p>\n\n\n\n

Many experts cited a number of factors were to blame for the decrease in sales.\u00a0 Industry experts agreed that the lack of quality homes<\/a> for sale was a top concern.\u00a0 In hindsight, last fall\u2019s home sale slowdown into spring may just have been an aberration.\u00a0 But it may also have been an indicator that correctly predicting the housing market is increasingly difficult and subject to local factors.\u00a0 Nonetheless, economists have predictions for housing market 2020 .<\/p>\n\n\n\n

At this year\u2019s NAR\u2019s 2019 Realtors Conference & Expo (Housing Experts Discuss 2020 Outlook<\/a>, Housing Innovation at Realtors\u2019 Expo<\/em>; nar.realtor; November 9, 2019), we heard opposing views about the economic outlook and the housing market 2020 .\u00a0 First, it\u2019s not unusual to hear NAR\u2019s chief economist Lawrence Yun to speak of the housing market optimistically.\u00a0 Although he doesn\u2019t expect a recession next year, he does caution that global economics could impact the US such that it could hamper growth.\u00a0 Yun stated a common assessment by economists, which is that home sale inventory is low.\u00a0 He stated \u201cThe U.S. is in need of more new housing\u2026This is an incentive for builders to start more construction. If they do, I think we will have at least 12 consecutive years of economic expansion.<\/em>\u201d <\/p>\n\n\n\n

Contrasting Yun\u2019s economic assessment, Kenneth T.\nRosen, chairman of the Rosen Consulting Group, expressed a risk of a recession\ndue to economic trade and politics.  However,\nRosen conceded that as long as the job market continues to remain strong, the\nUS economy will likely remain robust.  <\/p>\n\n\n\n

Speaking of jobs and home sale inventory, a recent market assessment by Ralph McLaughlin of CoreLogic (Homeownership Rate Jumps on the Tail of Low Mortgage Rates<\/a><\/em>; corelogic.com; October 29, 2019) indicated that the recent jump in the homeownership rate is an indicator that there is an \u201cupward\u201d trend in home buyer demand. \u00a0The 1.4 million new home owners in 2019 is a taken as a positive sign that buyer demand remains high, and is expected to drive the housing market in 2020.\u00a0 However, just like earlier this year, low home sale inventory and \u201cunderbuilding\u201d could damper next year\u2019s home sales stats.\u00a0\u00a0\u00a0 <\/p>\n\n\n\n

So, demand for housing will be strong next year, but what about home prices\u2026<\/p>\n\n\n\n

Molly Boesel of CoreLogic reported on home sale price growth and expectations for the housing market 2020 (Home Price Growth Regains Momentum<\/a><\/em>; corelogic.com; November 5, 2019).\u00a0 September\u2019s 3.5 percent CoreLogic\u2019s Home Price Index (HPI) increased slightly from August, which continues the six-month increase of home price growth.\u00a0 The steady increase in national home prices indicate a \u201cregained momentum.\u201d\u00a0 CoreLogic forecasts national home prices to increase 5.6 percent for September 2020.<\/p>\n\n\n\n

The S&P Case Shiller Home price Index <\/a>(spindices.com) corresponds with current national home price growth with a 3.2 percent September index, which is higher than August\u2019s 3.1 percent index.\u00a0 However, future home price growth may depend on regional shifts in home sales and job opportunities. \u00a0Seattle and Las Vegas dropped out of the top four cities, as it was noted the \u201chot housing markets\u201d are now in the southeast markets of Charlotte, Tampa, and Atlanta.\u00a0 <\/p>\n\n\n\n

Original article is published at https:\/\/dankrell.com\/blog\/2019\/12\/05\/housing-market-2020\/<\/p>\n\n\n\n

By Dan Krell
Copyright\u00a9 2019<\/p>\n\n\n\n

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Disclaimer<\/a>.\n This article is not intended to provide nor should it be relied upon \nfor legal and financial advice. Readers should not rely solely on the \ninformation contained herein, as it does not purport to be comprehensive\n or render specific advice. Readers should consult with an attorney \nregarding local real estate laws and customs as they vary by state and \njurisdiction. Using this article without permission is a violation of \ncopyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

After the unexpected slowdown of existing home sales last fall, most real estate agents had optimism for the 2019 spring market.\u00a0 However, many were surprised by the early spring reporting of mixed housing data (when all indicators should have been positive).\u00a0 Although national stats for spring seemed to be pushing upward, some regional markets didn\u2019t … <\/p>\n

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