In 2019 we experienced a great home shopping season for buyers. So, what does our countries “Crystal Ball” say about 2020?? We as a Powell Team are putting our necks on the line and making BOLD PREDICTIONS! However, first we want to encourage you to not sit around waiting for doom and gloom! Job rates are up and people are looking to buy.
If the current trend holds in 2020, then our market will remain stable. There will be a lot of new construction in Central Oregon, and we will see smaller, and more affordable homes on the market. People love to retire or own a second home in Central Oregon.
Single-Family Homes Will Continue to Shrink
· Baby boomers are looking to down size and first-time home buyers often buy smaller homes.
· Since 2016 the size of homes has been SHRINKING.
· Tiny homes are trendy, and Millennials want dense and more eco-friendly urban homes. A few weeks ago, we discussed what makes your home easier to sell and we joked that it’s easier to sell if it’s close to a “Starbucks”. We’re kidding of course, but many people do want to be walking distance away from shared amenities.
· People are looking to simplify.
Economists predict the United States will not enter a recession in 2020 and here’s why
· Consumer’s confidence remains intact which equates to more spending.
· Recent data shows employers have added more jobs and wage growth is up by 3%. When wages rise, it’s a good indicator that people are still buying.
· We have seen an 8.3% increase in medium home value over this last year and it has continued to climb currently standing at about 4.7% since October 2019
· The United States house value will also increase about 2.8%.
· Fannie Mae and Freddie Mac have increased their predictions of home sales over the coming year.
· Economists predict mortgage rates will stay low which makes the housing demand high. It’s a tension rod economy because there isn’t a ton of inventory, but interest rates are low so the supply and demand ratio is great.
Home values and rents will continue to slowly rise in 2020
· Home sales will continue to climb slowly…. If builders deliver on their promises then we will see more affordable new construction with less square footage.
· Due to Oregon’s new “Rent Control Law” rent values will continue to slowly rise. Most investors will probably raise rent so they can continue to do so each year and keep their rental in the right market range.
· Designers predict Scandinavian influences of grays and whites will fade, and shift toward playful, creative designs
· Fun patterns of wallpaper is back, we are already seeing them
· Colorful kitchen cabinets, appliances, lighting fixtures, interior doors, and moldings
Invest or get involved in the 2020 housing market because it’s going to be a steady and good market!