US Real Estate Predictions: What You Should Expect in 2020

  • December 26, 2019
  • admin@ohi

We are just a few days away from 2020, and naturally, everyone is curious to understand how the real estate market in the US will turn up in the coming year. With the real estate industry taking up a considerable portion of the US economy, we can expect a lot of changes in the next few months. Let us move forward and see what these changes could be.

Real Estate Predictions for 2020

Recently, Freddie Mac released a forecast stating that, even in a situation of an economic slowdown across the globe, the housing market in the US will stand firm. The existing home sales, housing permits, and new home sales will outperform expectations. Keeping this steady growth of real estate in mind, here are some of the predictions about the housing sector –

Sales Will Increase

One of the most valuable predictions by Freddie Mac for 2020 is that the sales of the housing sector will only increase in the next year. They believe it will reach up to around 6.1 million at the start of 2020. While many others predict that the real estate market of the US will go down, Freddie Mac is firm on the belief that it will expectedly increase due to the decrease in the mortgage. This point is discussed later in the article.

Further, they expect a competitive market in 2020 due to low supply and demand. However, as the prices rise in the next year, the gap in supply and demand will reduce.

Inventory Challenges Will Continue

As already noted in the above point, there is a shortage of supply. As a result, we are currently facing inventory challenges, which are likely to continue in the next year. These challenges will restrict the real estate market despite the high demand.

These have been termed as inventory challenges or supply-side challenges by many experts. These are in addition to the existing bottlenecks in the market such as low availability of labor and land.

Moreover, the scarcity will hit first-time buyers hard due to low availability of lower range real estate properties. Hence, the new-comers should start early next year and hold on to their patience.

Mortgage Will Fluctuate

The mortgage interest rates will remain low in the coming year as the economy is going down. However, it is not expected to go much lower as investors are already smartly preparing for the recession. If the economy faces trouble, then the mortgage will lower to 3.5%. If the economy improves, the mortgage will slightly increase to up to 4.1%.

Home Prices Will Also Increase

Similar to the pattern in the last year, Freddie Mac predicts a rise in the home prices in the coming year as well. This is expected to create a bottleneck for buyers looking for affordable homes.

Housing Will Not Get Affected by Recession

The housing market will not be affected much by a probable recession. The primary reason is that we are currently facing low inventory. Hence, the price of entry-level real estate will increase. Furthermore, due to mortgage quality and low availability, the real-estate will reduce the impact of the recession.


In terms of real estate, the next year will be similar to 2019. No massive turns are expected in the market. The situation will stay equally tricky for first-time buyers, and low availability of inventory will continue to create a gap in supply and demand.


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