Excitement can be felt all around as we say goodbye to the last decade and hello to new opportunities!
With a fascinating political environment and the economy looking positive yet unpredictable, real estate is a big topic to explore.
An election year is always a wild card, yet California is expected to perform strong and stable, despite previous predictions. However, it is important to remember that no one knows what will transpire for sure. Below, we present to you what experts are guessing for the real estate market as we voyage into this new chapter:
-Summary of SoCal real estate in 2020-
- It is unlikely a housing crisis is on the horizon- at least for this year. We know, this is not the news some folks want to hear, as they have been waiting months, maybe even years for housing prices to drop. The US market as a whole is flourishing, and we could be seeing upward movement in housing prices for longer than anticipated. Our advice to buyers: If you need to buy, do it now.
- Zillow has ranked San Diego the 10th hottest city to buy a home in the US! Rents are predicted to rise 8.4%, and property values are expected to rise 4.7%. Although, we think this seems a generous forecast.
- For most people, buying a home in Los Angeles is way out of reach. The current stats show us that only 25% of LA residents own their home. This statistic is not looking to change in 2020. Home values will continue to rise, although at a slower rate than San Diego. Home prices are forecasted to elevate 2.5% in 2020 and rent will increase around 3% on average. Investing in a home in Los Angeles, although competitive, will continue to be a great investment.
- Mortgage rates are expected to be even lower than last year! The Freddie Mac 30-year fixed rate may average 3.4%, and it is predicted to possibly go down as low as 2.8%. This is great news for buyers, but is reflective of the home sales volume decreasing by 8%. This means more competition in the marketplace overall. Those thinking to sell their home would be wise to do so in 2020.
With next year predicted to offer us less inventory, an increase in home values, and low interest rates, it's obvious buyers and sellers alike will need an expert to guide their real estate decisions.