Location, location, location: When it comes to the 2020 housing market, this phrase takes on another meaning. Without a recession that creates a common economic theme across the nation, the housing market trends will become highly local. One city could be a buyer’s market, one’s a seller’s market, and another could be split down the middle. So when the national housing forecast predicts a year that will be lukewarm on average, it misses the bigger picture of the fragmented market: Selling in Chicago could give you a headache while selling in McAllen, Texas sale could have you smiling all the way to the bank.
If expert predictions for the 2020 housing market come true, homeowners shouldn’t expect to enjoy the crazy price run-ups of a market boom, but they likely won’t face a devastating recession or crash, either. Outside of those two extremes, you’re going to see a lot of variance among markets and even within markets next year.
Remember that national trends are just averages of a bunch of different cities across the country. A “national” housing market doesn’t really exist — though when the Great Recession clobbered 49 of the nation’s 50 the largest metros, and much of the country went through the sharp recovery that followed in relative synchrony, it sure did feel like everyone was in the same boat.
That’s no longer the case.
Next year, if you don’t narrow your focus from the big picture, there’s a good chance you’ll miss the real story. Without the crisis or recovery uniting housing with a common theme, factors like geography, affordability, jobs and migration patterns stand to widen the gap among housing markets in 2020 and beyond.
