What does the new year mean for the 2020 housing market? Let’s take a look at the outlook of the housing market nationwide and what this means for Florida’s market!
2020 Housing Market, Good News or Not?
As we prepare to say goodbye to 2019 and hello to 2020, we want to know the outlook for the 2020 housing market nationwide and how Florida will be affected. What does this mean if you are looking to sell your home or buy a new one?
Nationwide Housing Market Outlook for 2020
The outlook for the housing market across the states is looking grim. In fact, some are saying the housing market crash is already here. Although the economy is stronger than it has been in recent years and unemployment rates are at their lowest, it doesn’t mean that the housing market is going to follow suit.
Signs of Trouble
According to CCN, the mega-giant, Home Depot is already preparing for a housing market crash. This well-known home improvement store believes we are already seeing signs that the market is in trouble.
One of the most concerning signs is a severe shortage of entry-level homes on the market. Entry-level homes are considered to be homes below $200,000. October of 2019 saw a 15.2% decline in entry-level inventory compared to October 2018. The bad news doesn’t stop there. November 2019 saw an even sharper decline of 16.5% compared to November of 2018.
However, it is not just entry-level homes that are experiencing an inventory shortage. Mid-level homes are also experiencing shortages. The bottom line is that there is an overall shortage of affordable housing inventory for buyers to choose from.
Predictions for the New Year
According to Realtor.com, housing inventory will remain in short supply through the foreseeable future in 2020. Mortgage rates are also expected to rise. This is not good news for the housing market. Sales could very well drop due to a lack of inventory and higher rates.
What Does This Mean for Florida’s Housing Market?
So, what do these predictions mean for Florida’s real estate market? The good news is that Florida is an anomaly when it comes to the housing market. People want to move here to retire. This means that Florida seems to be insulated from the housing crash going on in the United States. In fact, Florida’s market is seeing consistent growth in sales and housing prices. However, Florida is seeing the same inventory shortage as the rest of the nation. I guess time will tell if the 2020 housing trends for Florida hold true.
This is Gitta, with Gitta Sells & Associates. My team and I are happy to help you with any and all questions you have regarding home buying and selling. Until next week!