A look at Queens, Nassau, and Suffolk housing markets in 2019, projections for 2020 home prices, mortgage rates, affordability & more.
We sit down to answer the inevitable question on everyone's mind: "how's the 2020 real estate market?" We examine the New York housing market - more specifically the Queens, Nassau and Suffolk county markets. We also explore some of the core challenges and opportunities likely to impact buyers and sellers in 2020.
The forecast for the 2020 housing market looks promising due to limited inventory (especially at the more affordable, entry-level price ranges), low-interest rates, and Millennials in a major home-buying phase.
The lower supply of homes will continue to drive home prices higher and on the demand side, lower rates, and an influx of ready and able buyers will fuel market activity.
2020 PROJECTIONS - Mortgage Rates and Home Prices
Industry experts at the National Association of Realtors (NAR), the Mortgage Bankers Association(MBA), Fannie Mae, and Freddie Mac all forecast mortgage rates to remain stable throughout 2020.
Furthermore, forecasts from six different expert entities point to improving home values through 2020, with four of them seeing price appreciation increasing at a greater pace than it did in 2019. (Projections by CoreLogic, Fannie Mae, Ivy Zelman’s “Z Report”, the National Association of Realtors (NAR), Freddie Mac, and the Mortgage Bankers Association (MBA).
KEY INDUSTRY INSIGHTS
"First-time homebuyers continue to represent a large part of the activities in the housing market. In Q3 (2019), they represented 39 percent of all buyers in the single-family housing market and 55 percent of all purchase money borrowers. That means 39 percent of the customers of realtors and 55 percent of the purchase customers of mortgage lenders are first-time homebuyers." Genworth Mortgage Insurance
"A new TransUnion (NYSE: TRU) analysis projects at least 8.3 million first-time homebuyers will enter the mortgage market between 2020 and 2022. That number could climb to as high as 9.2 million if economic growth exceeds expectations. Both growth projections mark a significant acceleration from the 7.6 million first-time homebuyers added in the last three-year period (2016-2018)." TransUnion
The Challenge First-time Homebuyers Will Face
Most first time buyers don't understand the home buying process and financing options well enough to participate in the market.
The Challenge Housing Market Will Face
Lack of housing shortage has become the housing market’s “chokepoint,” driving costs of living higher.
Consider this, "the number of single-family homes for sale dropped to 1.45 million in November, the lowest level for that month in a data series that goes back to 1982, Yun said. The U.S. has added 96.5 million people in the intervening years."
The 2020 real estate market looks healthy (more moderate) and strong enough for Americans to continue to capitalize on the homeownership opportunities that come with low-interest rates.
If you are wondering how the 2020 housing market is going to impact your specific area or buying or selling decision, get in touch with us today.
For first-time buyers, 2020 presents excellent conditions or homeownership. If you have had any thoughts of buying a home this year, get in touch with a local market expert to understand the home buying process AND a mortgage banker to explore your financing options.
TAYEB GROUP is a leading full-service real estate brokerage and your guide to the BEST real estate Queens, Nassau, & Suffolk.
Do you need help with the purchase or sale of your home in Queens, Nassau, or Suffolk? Get in touch with us for all your real estate needs at (718) 606-9050 or contact us here.