The housing market is a mix of highs and lows. The housing shortage will get worse that is to say the selling homes will drop for sure in the year 2020. However, the demand s for new homes in the U.S is definitely strong. As there is good employment and the number of youngsters buying new homes for them are increasing day by day. However, the home prices are high the supply is less. Hence, according to some fair housing forecasts, the value of the homes will shrink for sure. And this will lead to the low sales value of the existing home this will make it difficult for people to sell homes in the future.
Mortgage Rates Will Stay Low In 2020
As in 2019, the mortgage rates fell and the rates will remain the same in the year 2020. This is good for those who want to invest in the housing market. The rates decided by the federal home loan corporation have decided the prime rate of mortgage rate lie between 3.8% to 4.1 %. It is good news for a home buyer as the interest rates on the houses will be below. That means there are various loan options that are available to a home buyer. Basically, it means one can find a home for themselves easily. Before buying a home let the mortgage officer review the buyers’ income, assets, credit, and employment situation for getting a home loan approval letter. Have all the documents ready before buying a home.
It’s Better To Know The Supply And Demand Of Homes In 2020
In the year 2019 according to a survey, approximately 16,438 homes were sold on a daily basis. The numbers look larger but the reality is this result of the sales is approximately low from 2018 by 1.7 %. But in 2020 one has to see how many home builders come in the market with new homes. But according to national data the forecast of selling homes in 2020 will be around 16, 986 per day. However, if one looks at the demand side of the homes the demand is rising year after year as the mortgage rates are pretty low. But on the contrary, the rents of the homes too are increasing every year. Therefore, owning a property or a house in 2020 will be fruitful for sure. The availability of new homes will also increase by 11.5 % in 2020. Therefore, buyers will have a variety to choose from.
Housing Affordability And The Migration Patterns Play An Important Role In 2020
The reality is that a lot of people are moving out of state to buy a house. As either the houses that are available in their state are too costly or there is no availability. Either they are seeking cheaper rent or people are looking for affordable homes for themselves. One city`s loss is another city`s economic boom in 2020. Therefore, all those companies who are building houses in a particular city must make sure to make houses available at an affordable price.
Therefore, many people are migrating from one place to another in search of good jobs, more financial stability, and affordable homes. Hence the real estate needs to make houses that are affordable, and suitable for a normal earning individual.