For 2020, The National Association of REALTORS® Chief Economist Lawrence
Yun sees good news for home prices. “National median home price growth is in
no danger of falling due to inventory shortages and will rise by 4%,” the longterm
NAR economist predicts. He is also expecting the new-home construction
market sales to increase 10%. Yun and others would like to see home builders
bring more affordable units to market to help ease shortages and slow price
gains in that segment.
New Listings in the Milwaukee region decreased 4.2 percent to 1,470. Pending
Sales were down 61.2 percent to 456. Inventory levels rose 9.1 percent to 3,317
units.
Prices continued to gain traction. The Median Sales Price increased 10.1
percent to $220,000. Days on Market was down 17.0 percent to 44 days.
Buyers felt empowered as Months Supply of Inventory was up 15.8 percent to
2.2 months.
We start off the year with continued low interest rates, low unemployment, and
rising rents nationally. These factors should encourage healthy buyer demand
and sets us up for a strong start to the 2020 housing market and a lot of
optimism for the coming spring market.
The views and opinions expressed in this article are those of the authors and should reflect only on trends that affect the economics of real estate.
