What Can Home Buyers Expect in 2020?
Louisiana Realtors • December 31, 2019
2020 marks not only the beginning of a new year but also a new decade. Furthermore, it’s an election year. This means it’s a year that marks many milestones. Is one of those going to be the purchase of a new home? If it is, it’ll be helpful to know what you can expect in terms of the real estate market and economy in 2020. Here is a quick forecast of the year to come.
Home Prices are Rising
While prices rose more slowly in 2019, a 3.3% increase, compared to 5% in 2018, they are still on the incline. 2020 is forecasted to see a 2.8% increase in sale prices. This trend will play an important role in not only your mortgage process but also the neighborhoods that you shop in. Entrust your time with a professional, knowledgeable REALTOR® who listens to your list of needs and be able to communicate your expectations from the beginning. Be sure that you understand the inventory of what is available on the market and how much house you can afford by first talking with a trusted lender.
Millennials Will be the Largest Group of Homebuyers Again in 2020
As in recent years, Millennials will be the leading demographic of home buyers. Last year this generation accounted for 37% of home purchases. This means that home shoppers in this age range need to understand what they want and need now, as well as in the future. Are you married or planning to be? Do you have kids? Expecting? Lots of things need to be considered when looking for a new home.
Mortgage Rates Will Continue to Decrease
Some good news in 2020 for prospective home buyers is that mortgage rates are expected to remain low. Rates are forecasted to stay below 4% again, with an expected average rate of 3.7%. This is an excellent opportunity for home buyers to get a low, fixed-rate mortgage.
No matter where you are looking, what you need, or anything else, if 2020 is the year you by a new home, entrust the process to knowledgeable, professional REALTOR®.
NAR is pleased to share the latest consumer guide focused on state and local tax (SALT) deductions . This guide explains federal tax law changes that temporarily quadruple the amount of state and local taxes (SALT) that taxpayers can deduct and will make homeownership more accessible and affordable, especially for people in higher-tax states. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: Assistance Programs Real Estate Auctions Working with a Real Estate Attorney Making Your Home More Energy Efficient Buying a Historic Property Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on August 6, which will cover packing tips and tricks.
The Louisiana REALTORS® Board of Directors will elect six (6) LR At-Large Directors at its October 8th meeting. Qualifications and an application for the position can be found below.
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