What Is Going to Help or Hurt The Housing Market for 2020?

clouds spelling the word hmm as a questionDeciding when to buy a house is an important decision and it seems like more and more people are starting to make the choice to start looking for a new home earlier in the home buying season. There is typically a lag in home buying during the winter months but that trend is becoming more and more obsolete. Weather just doesn’t matter as much when it comes to listing and selling your home or house hunting. Spring, Summer and early Fall still have an edge to Winter but it is slowly coming out of the doldrums. 
 
The low mortgage rates are actually acting as a double edged sword to the whole buying/selling process. Many new home buyers are managing to get mortgages that are more affordable and are making the chance to buy a home closer in their reach. However, homeowners are able to refinance their homes at the lower rate and subsequently stay in their homes longer. This causes a shortage of available homes to purchase making inventory low and prices of the available homes rise. 
 
New construction is on the rise in some areas which is helping to ease the burden on some of the inventory but it can only do so much. In some areas the cost of developing the land is creating a burden. The solution has been to build in already developed areas and suburban centers that are farther away from expensive city centers. 
 
All these reasons are creating the feeling that 2020 is going to be one of the most active years yet. The vast differences in some markets may cause bidding wars to occur when the stock of homes is low but demand is high. Will homeowners be content to refinance their current home or will they decide to upgrade themselves or perhaps downsize and finally put their home on the market? It will be interesting to see how the rest of the year turns out and how all these factors come into play. 
 
If you are interested in listing your home or if you are currently on the hunt for your dream home then please make sure to visit our agents page and contact one of our talented agents to help you through the process.