The start of the year is always an exciting time. It’s a chance to plan for the future and look back on the past year. It’s also the time of year that I hear from many clients who want to know how the real estate market ended and where it’s headed.
Getting perspective on the past year’s trends helps us see how the future will unfold. Here are a few of the key developments the real estate market experienced in 2019.
Interest rates were low, so money was cheap. While experts predicted a rise in interest rates last year, we saw drops even below 4% this year. These low rates are expected to continue in the year ahead unless something changes bringing calm to the world economy.
Demand for housing was ample, although supply was limited. It remained a sellers’ market in 2019 across most areas at the low to mid-level price points, with a continued lack of inventory for sale.
Homeownership rates rose, thanks to low mortgage rates. Buying continued to be more economical than renting as rates dropped, and that brought a jump in homeownership rates, according to Census Bureau reports.
Healthy conditions were reported in the job and stock market. This past year had one of the hottest job markets in recent history, with healthy growth through the year. Likewise, the stock market hit record highs, and industry analysts see that continuing in 2020.
Concerns lowered for a potential recession. Economists talked about a potential recession in 2019 or 2020, but those expectations have dropped as the domestic economy is very strong.
Altogether, 2019 brought positive news to the housing market and 2020 is likely to see the same. If you’re interested in learning more about the market or looking to buy or sell this year (or if you know someone that may), let me know. I’m here to answer all your questions.