Yesterday I went back and looked at some of the predictions for the housing market for 2019. Many of the articles I saw were written in December of
2019 and most of them were about the national housing market.
Several experts predicted that there wouldn’t be as many buyers and that the housing market would start to become more of a buyers market and that would the increase in prices.
Real estate really is local. We have not been seeing any kind of slow down in demand or housing. Buyers are still buying and prices are still rising. The one thing the predictions did get right is that the year will end with fewer home sales. it isn’t because no one is buying it is because fewer are selling.
I’ll go out on a limb and predict that home sales in 2020 will be down from 2o20 as compared with 2019 and that prices will rise. Interest rates will remain very low because well you know it is a presidential election year.
People used to live in the same house an average of 7 or 8 years. As of this year, that number has gone up to 13.3 years. People are moving less and spending more money on renovations. The trend seems to be local and national.
As for the housing market as long as the population continues to grow and as long as the current trend of not building affordable housing continues the seller’s market will remain strong. It is unlikely that baby boomers, especially those who are not wealthy will sell because there really isn’t anywhere for them to go. There isn’t enough affordable housing for seniors or for anyone else.
If you live in the Twin Cities metro area the local newspapers and blogs like mine are a better source of information than the coastal media.