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2020 is a great year to land your dream home and invest in the housing market for many reasons. First and foremost, interest rate projections stay consistent for the rest of the year. It’s also an election year, which means the federal government usually takes a backseat to the campaigns and elections. The government usually steps back in after the election cycle is complete and stimulate the economy. It’s safe to say that no significant changes are in the forecast to our attractive interest rates right now until at least the end of 2020.

In 2020 anywhere from 8.3 million to 9.2 million first-time homebuyers are predicted to enter the housing market between 2020 and 2022. That’s up from just 6.67 million between 2013 to 2015 and 7.64 million between 2016 to 2018. Millennials are revolutionizing the home-buying process. Millennials may wait longer to buy, but that basis is mainly in part thanks to the economy and society of their upbringing. The cost of living, education, and job scarcity have skyrocketed while the rate of pay has remained mostly stagnant over the last fifteen years. For the second year in a row, NAR’s study found that Millennials made up the largest group of recent buyers at 32%. More than half of 18- to 34-year-olds have expressed a desire to buy a home in the next five years. A recent report by Harvard predicted an increase in the number of Millennial households by 2.7 million in the next ten years, which is powerfully boosting the demand for new housing.

After emerging from the financial crisis and recession of the early 2000s, housing prices skyrocketed, and inventory plummeted. It was pretty apocalyptic for the housing industry for about 10 years. Builders weren’t producing and going out of business, and it was increasingly difficult to get help from a lender.
We are entering 2020 on an optimistic note. It seems the economy is recovering thanks to improved political governing, more supply and demand, and better tax systems. In 2019 we noticed that prices were beginning to slow down and even fall. The National Association of Realtors has predicted a slowing of the housing market around two percent, and prices are already falling.

Sellers are aware that housing markets fluctuate, and nothing is promised. Based on everything mentioned above, interest rate steadiness, new buyers entering the market, better taxes, and more supply and demand, it is better to make a move, than wait. Now is the time to capitalize on earned equities, especially if the home was purchased post-recession, and sell.

It is essential to keep in mind that there are no emergencies in real estate. Every real estate transaction has the potential to be a win-win-win. With proper planning, a realistic attitude, and the right support, the goal of a win-win-win becomes a reality. Listen to the real estate professional on your team, and you can land the home of your dreams.