Are you looking for a good time to get in on the housing market? Experts predict that it’s likely to be another quality year in 2020.
United Wholesale Mortgage CEO and President Mat Ishbia said there is one big reason this year will be a good one to make a home purchase.
“Affordability is really great, from a homebuyer perspective,” Ishbia said, forecasting rates will remain low.
Mortgage rates are expected to average 3.85 percent, according to a report from Realtor.com.
Realtor.com, consistent with its predictions for continued affordability, anticipates prices of home to rise just 0.8 percent across the U.S. this year – with declines occurring in 25 percent of the 100 largest metro areas.
“The spring purchase season in 2020 will likely “have a lot of legs” and could carry on through the fall,” Ishbia said.
However, first- time buyers are likely to face challenges. A lack of inventory at the entry-level section of the market is one negative trend that is expected to carry on into 2020.
“There’s a paucity of new inventory in the market to support the Millennial generation,” Ishbia said.
According to Realtor.com, the total number of available homes for sale could even hit a record low, with outsized pain at the lower-priced segments.
Meanwhile Realtor.com expects to see a rise in demand in the entry-level segment – driven by an uptick in Millennial activity – it expects competition to be expand.
All those young buyers who are on a house hunt might want to consider using a broker to help them lock in best deals, Ishbia said.
LendingTree predicts sales will rise by 2 percent to 5 percent year over year by virtue of both low rates and more millenials entering the market. The largest online lending marketplace also predicted tightened supply at the lower-priced segment of the market will persist this year.