What’s in store for the housing market in 2020?

2020 is fast turning out to be an up-and-up year for the housing sector, driven by increased job markets and low mortgage rates. However, those in the market for a new home this year may have problems looking for one, according to Ron Cadman of residential and commercial property developer Investar USA.

Real estate professionals say that generally speaking, the growth of the housing industry this year will be solid but modest and will carry over to 2021. This is driven by expert anticipation that the sector will finally have a real effect on GDP growth. And because of the mixture of more people getting employed and interest rates plummeting, consumer spending will increase, and more people will be shopping for new residential properties.

The positive developments are bolstered by the recent signing of the Phase One deal in the ongoing U.S.-China Phase trade talks. And, though much has yet to be done to improve foreign relations with the Asian nation ultimately, players in the real estate industry are already benefiting from the halt in the trade war.

Realtor.com concurs with what many other housing experts estimate. The real estate listings website says it’s not so much an aspect of what people can afford as what they can find. Tight supply and continuing demand will still lead to a bottleneck, making it more challenging for buyers to find a good home despite the historically low interest rates. In actual numbers, this scarcity equates to home sales driven down by 1.8% this year, amounting to 5.23 million.

The seen competitiveness in the housing market is echoed by online real estate brokerage Redfin, while home sale marketing company Zillow predicts slowed-down home value growth, adds Ron Cadman. But the National Association of Realtors is more optimistic for 2020, stating that it expects moderate housing market growth as home price gains get tempered by increased home-building activity and consequent growth in supply.

Investar USA is a North American residential and commercial property developer specializing in renovating and repositioning diverse properties throughout the U.S. and Canada.

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