Happy New Year!
We are so excited for what’s to come this year, especially given the real estate market conditions. We’ve gathered each agent’s predictions for what’s to come in the real estate market in 2020 and we’ve concluded that it’s going to be a prosperous yet competitive year for buyers and sellers to enter the market. If you have questions or interest in this year’s real estate market trends, we’d love to be a resource for you.
I believe 2020 is going to remain very similar to the stats that we saw in 2020.
I think we can expect and 6-7% appreciation rate in 2020 for Kent County. I think the Average Sale Price in Kent County will eclipse $250,000 at some point during the year. I project that interest rates will hover around the 4% mark most of the year. We will experience a spike in appreciation during the spring months of 2020. Overall inventory levels in 2020 will still favor sellers.
Market conditions will remain relatively consistent to what we have been experiencing in 2019. Appreciation will increase 5.5% while interest rates will remain the same, 3.75%-3.9% over the year. There will still be a low inventory of houses for sale much like we have been experiencing making it a sellers market. Home prices for first time home buyers will have a high demand, making first time home ownership more expensive.
My prediction for 2020 is that January and the first 2 weeks of February will be an all time low in sales. After February 15 we will start to see multiple offers until June 30, 2020. Once July hits the market will stabilize continuing to be competitive just not as competitive as the Spring Market. After the Spring Market rush is a perfect time for MSHDA, VA and FHA Buyers to start shopping. I think we will see a 3.3% Appreciation for the year, $235,000 average home sale, interest rates will continue to flex between 3.75-4.00 throughout the year, inventory will be healthy, but just enough to still make it a Sellers market even in the late parts of the year like October and November.
2020 will be a year of opportunity for both sellers and buyers alike. This year, inventory will remain stagnant, and may even decrease from last year, leaving minimal options for potential buyers. Demand for homes will increase as more interested buyers begin to enter the real estate market, creating competitive market conditions. With the influx of buyers and the decrease in supply, this may influence home list prices to increase, bidding wars and consequently, home sale prices to increase. Backing this point, Matthew Gardner, chief economist at Windermere Real Estate, believes “prices will increase 3.8% in 2020 as demand continues to exceed supply and more first-time buyers enter the market.” Based on the state of the economy, interest rates will remain near historical lows ranging from 3.65%-4.1% through the majority of the year. Given the growing buyer demographic, their confidence in the economy, low mortgage rates, low inventory and affordable pricing, 2020 will be a great year to get involved in the real estate market.
2020 is going to be a great year. I believe it's going to be a little more of a level playing field for buyers and sellers. We won't see the competitiveness that we have the past few years. Buyers will have more wiggle room to negotiate on prices and types of financing. It's more likely FHA and other lending options will have an opportunity to compete. Rates will remain historically low which will encourage the buying pool to get out there to find a home. We won't see the massive appreciation we have experienced the past few years but rather a modest increase in home values. 4-6%. Per usual, the spring time will see that initial rush but we will see things level off earlier than usual. The economy isn't quite turning for the worse as predicted so I think we will see more buyers and sellers open to exploring their options.