If one wanted to be really cute about it, one could sum up the 2020 real estate predictions in just a handful of words, which would be as follows. Low interest rates, adjusted inventory of the housing stock and the continuous digitization of real estate transactions.

Digitization

According to Sean Hundtofte, chief economist at online mortgage lender Better.com, “In 2020, we will continue to see Millennials increase their share of the mortgage market, which in turn, will serve as a catalyst for lenders to continue to innovate rapidly. its technology offerings to meet the expectations of an audience more used to a Venmo-like experience on Amazon. ” Although Mr. Hundtofte adapts to point out the importance of technology, he loses the sense of thinking that companies orient their technology to please a certain generational group, when in reality the engine of technology is to optimize the resources of a company with the purpose of pleasing. The expectations of Wall Street, not the Android-obsessed consumers who are more concerned with their latte than other important matters in life.

Adjusted inventory

As Daryl Fairweather, chief economist at real estate brokerage Redfin explains, “Right now we’re not seeing a ton of new listings. With no more listings on the market, there will be more competition starting in early 2020 and that will lead to more pressure on prices. ” And what this will mean is that more pressure leads to less inventory movement, which leads to tighter inventory. Great if you are a homeowner and sitting on a ton of equity, not so great if you are looking to buy a home but are stuck on the sidelines without much to choose from. Always a bridesmaid and never a bride? It is not a good place to be if you are sincerely looking to buy a home and cannot buy at your preferred price, and / or you have to commit to the neighborhood you would like to live in but cannot. the lack of movement in the housing market.

Interest rates

This will be very fast. Most economists predict that 2020 will be in the 3.7% to 3.9% range for a 30-year mortgage, while some of the more optimistic economists expect the rate to fall further, perhaps in the sub-range. 3.5% to 3.6%. That’s at least what the doctors who push the pencil at Fannie Mae say during their water-chilling breaks in Washington, DC. This is good news for everyone, as lower rates will allow you to buy more home than you could have bought just a year ago, assuming prices have not risen as much. If so, it means you are one dollar short, one day late.