Foresight Is 2020 in the Real Estate Market

It’s a new year, and many folks are already planning to sell and/or purchase a home in 2020. But what will the market look like this year? Depending on which article or report you read, the real estate market is forecasted to be a bit better, a bit worse, or much the same as 2019. So, what to believe? And what’s in store for Granite Bay? While no one has a crystal ball, there are some trends to keep an eye on.

Home Sales Are Expected to Rise Slightly

According to Freddie Mac, the government sponsored buyer of mortgage loans, home sales are expected to rise from 6 to 6.1 million in 2020.

Inventory Challenges

With interest rates expected to remain low and mortgage rates only rising slightly in 2020, supply will be tight. People are also staying in their homes longer than in years past which cuts into inventory.

Home Prices Will Continue to Rise in Most Markets

Both Freddie Mac and Zillow expect the median home price to rise by about 2.8% in 2020.

Many Homeowners Will Refinance

Homeowners will take advantage of low rates and increased equity by refinancing. Freddie Mac predicts $785 billion in single-finance mortgage originations in 2020.

Technology Continues to Change the Way We Buy and Sell Real Estate

In the online newsletter Housing Wire (9/26/19), reporter Phil Shoemaker asserts that finance technology, or “fintech” will increase in 2020: “In fact, the reason for some M&A [mergers and acquisitions] activity is the inability of some lenders to keep up with the every-changing regulations and technological requirements.” More lenders will begin to integrate technology into their mortgage process in order to lower costs and streamline the borrower experience. In fact, companies such as Zillow, Quicken Loans, Opendoor, and Redfin are expanding their business models by offering real estate and lending products.

Shoemaker also states that the iBuyer model, where a company instantly buys a seller’s home, fixes it up, then sells it themselves, continues to grow in popularity: “The goal seems to be to become the next one-stop-shop for all your housing needs.”

The Suburbs Will Be a Big Draw

As prices increase in metropolitan areas, many buyers will look for more affordable places to purchase. Granite Bay and the surrounding areas, such as Folsom, Roseville, Rocklin, Lincoln, and El Dorado Hills have already experienced this trend. “Hipsturbia” – where people live-work-play in suburban neighborhoods is one of the top real estate trends to watch in 2020, according to the Urban Land Institute.

What About Granite Bay?

Overall, it’s likely that Granite Bay will continue to see reduced inventory push prices up a bit, with a lot of the demand being buyers moving from metropolitan areas, such as the Bay Area, as well as folks staying put longer. For those not buying or selling, there will be ample opportunity to refinance due to continued low interest rates. The key to success in any real estate venture in Granite Bay in 2020 will be working with a knowledgeable and strategic real estate agent and/or lender.

 

Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for over 15 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or www.debbieaustingroup.com.