2020 Housing Market Forecast
Updates on the 2020 housing market.
Covid19 continues to affect many parts of the economy, the 2020 housing market included. But is there room for hope that the market may begin a rebound this year? Let’s look at some forecasts for the rest of 2020 and see where we are and where we may be headed.
As a result of COVID19’s impact on the general economy, the site Zillow has done some number crunching on where home prices are likely to go this year. According to them, home prices will most likely fall 2%-to-3% through the end of the year from pre-Coronavirus levels. Realtor.com’s Senior Economist George Raitu, has also made a forecast for the housing market in 2020. According to this expert, “…sales of homes will fall 15% in 2020 with prices flattening.” While this isn’t amazing news there may be some good news as there may be a light at the end of this tunnel that may shine through by the end of 2021.
Factors that will Continue to Affect Home Valuation in 2020
• A longer economic downturn as states reopen in an uncoordinated way. (Some states have reopened and then had to shut back down as COVID19 continues to spread.) These continued false starts may continue to lower home values.
• Ineffective or insufficient federal fiscal relief efforts. This will impact most buyers’ ability to purchase homes.
• Ineffective relief for the mortgage industry.
• Low inventory.
The site Realtor.com does forecast a short-term bump in sales for late summer and early fall due to low mortgage rates and other factors. Another driver for a stronger third quarter they say are Millennials with families who want to settle into new homes before the school year begins. However, they do not expect this increase in sales to last into the fourth quarter of 2020.
These rapid developments in the housing market are why you need a realtor who can trace, interpret and use data to help you know when or even if you should sell or buy a home. My Ventura County real estate team can help you decide what is best for you in the near and long term. We currently have Ventura County homes for sale that are selling quickly and with multiple offers! There are a limited number of homes on the market for this time of year so despite the state of the economy it may be the best time to sell or buy! Let us know how we can help you achieve your real estate goals before the end of this year.