December 2019

iStock
2020 Real Estate Outlook: Expert Predictions For Mortgage Rates, Home Prices, Tech And More

Forbes
Aly J. Yale |  Senior Contributor | Real Estate

The 2019 housing market has been one of low rates, high demand and limited supply-particularly on the lower-priced end of the market.

Will 2020 be more of the same? According to experts, yes and no.

We spoke to six mortgage, real estate, and housing professionals. Here's what they say is in store for the year to come:

Mortgage rates will stay low-or maybe go lower.

Mortgage rates currently sit at 3.75%, according to Freddie Mac's most recent numbers-nearly a 1% difference from the monthly average a year ago. The drop in rates caused a surge in refinancing over the last few months, and purchase activity ticked up as well.

According to Odeta Kushi, deputy chief economist at title insurance and settlement services provider First American, there's "emerging consensus" that rates will remain low next year-likely somewhere between 3.7% and 3.9%, she says.

Forecasts from Freddie Mac and the Mortgage Bankers Association back this up, both predicting 2020 rates within this range. Fannie Mae actually predicts rates will clock in even lower, vacillating between 3.5% and 3.6% throughout the year.

Sean Hundtofte, chief economist for online mortgage lender Better.com, says that thanks to these continued low rates, refinancing should remain a popular choice in the new year. And for homebuyers, he says, they'll "be able to afford more house than they would have otherwise."

Prices will keep on rising.

Home prices will continue their climb upward, according to experts, largely thanks to tight inventory and high demand.

According to the latest home price forecast from property data firm CoreLogic, home prices should tick up by 5.6% by next September-up from the just 3.5% jump we saw this year.

As Daryl Fairweather, chief economist for real estate brokerage Redfin, explains, "Right now we aren't seeing a ton of new listings. Without more listings coming on the market, there will be more competition starting off in early 2020 and that will lead to more price pressure."

The problem will be worse on the lower end of the price spectrum. According to Ralph DeFranco, chief economist for mortgage insurer Arch MI, entry-level home prices will rise higher than incomes next year-and disappointing construction numbers will only compound the issue.

"Low interest rates and a shortage of starter homes will continue to push up prices," DeFranco said. "This is especially the case for lower price points, since builders have tended to focus on more expensive, higher-profit houses and less on replenishing low inventories of entry-level homes."

It seems the price growth may continue beyond 2020, too. Data from Arch MI shows the chance of home price declines at a mere 11% for the next two years. There are currently no states or metro markets projected to see prices declines in that period.

Inventory will be tight.

More.....





 Click Here to View All Current BHHSAZ Listings
Local Upcoming Events
 

Phoenix
Suns
Schedule
Zoolights
Phoenix Zoo/Arizona Center 
For Nature Conservation
455 N. Galvin Parkway Papago Park Phoenix, Az
November 27, 2019 To January 19, 2020
Recurring Daily
(602) 286-3800
5:30 Pm To 10:30 Pm
$14.95+

Elf The Musical
Arizona Broadway Theatre
7701 W. Paradise Lane Peoria, Az
November 27, Nov 29 - 1, Dec 3 - 8, Dec 10 - 15, 
Dec 17 - 22, Dec 24, Dec 26 - 29, 2019
623-776-8400
12:00 Pm

Westgate Shopping Center
9121 West Glendale Avenue Glendale, Az
November 26, 2019 To January 5, 2020
Recurring Daily
(480) 550-1777
6:00 Pm To 10:00 Pm
$22.99+
 
Diablo Stadium
2200 W Alameda Dr Glendale, Az
November 26, 2019 To January 5, 2020
Recurring Daily
(480) 550-1777
6:00 Pm To 10:00 Pm
$22.99+
 
Schnepf Farms
24810 E Rittenhouse Rd Queen Creek, Az
November 27, 2019 To December 30, 2019
Recurring Daily
6:00 Pm To 10:00 Pm
$20-$35
 
Arizona State Fairgrounds
1826 W. Mcdowell Rd Phoenix, Az
November 28, 2019 To January 12, 2020
Recurring Weekly On Sunday, Thursday, Friday, Saturday
5:30 Pm To 10:00 Pm
Tbd
         
Butterfly Wonderland
9500 E. Via De Ventura Scottsdale, Az
November 29, 2019 To December 28, 2019
Recurring Daily
(480) 800-3000
Price: $24.95
 
Downtown Glendale
58th And Glendale Ave Glendale, Az
November 29, 2019 To January 11, 2020
Recurring Daily
5:00 Pm To 10:00 Pm
Free
 
Rawhide Western Town
5700 W North Loop Rd Chandler, Az
November 29, 2019 To December 22, 2019
Recurring Weekly On Sunday, Friday
(480) 502-5600
5:00 Pm To 10:00 Pm
Free
 
Desert Botanical Garden
1201 N. Galvin Parkway Phoenix, Az
November 29 - Nov 30, Dec 6 - 8, Dec 13 - 15, 
Dec 17 - 23, Dec 26 - 31, 2019
(480) 941-1225
5:30 Pm To 9:30 Pm
Members - $29.95-$34.95, General Public - $34.95-$39.95
 
Desert Stages Theatre
7014 East Camelback Road, Suite 0586 4720 N Scottsdale Rd Scottsdale, Az
Dates: November 30 - 1, Dec 6 - 8, Dec 13 - 15, 
Dec 17 - 22, 2019
(480) 483-1664
Times Vary Daily
$22-$28
 
Fountain Hills Theater
14455 N Saguaro Blvd Fountain Hills, Az
December 6 - 8, Dec 12 - 15, Dec 19 - 22, 2019
(480) 837-9661
Times Vary By Day
$35
 
Symphony Hall
75 N 2nd St Phoenix, Az
December 13 - 15, Dec 19 - 21, Dec 23 - 24, 2019
(602) 381-1096
7:30 Pm
$34-$178
 
Tempe Beach Park
80 W Rio Salado Parkway Tempe, Az
December 14, 2019
(480) 355-6060
4:00 Pm To 9:00 Pm
Free Admission
 


Courtesy Of Visitphoenix.Com

Susan Gerkin
REALTORĀ®

602.576.2997   |  Susan.Gerkin@BHHSAZ.com  |  SGerkinRealtor.com