What Will the Housing Market Look Like in 2020?

The new year will be a positive one, according to economists. They do not predict any crazy growth, but low mortgage rates, new construction, and moderating prices are expected to buoy sales. One of the biggest changes to the market may be how it operates as iBuyers increase their influence and more people sell directly to real-estate companies. But as with any economic forecast, unforeseen curveballs could shape what actually plays out to be different than what we were expecting: Just months ago, all the talk was on an impending recession. Now, economists aren’t so sure.

Economists say that 2020 will be a positive — though not exactly stellar — year for the housing market. And that could be good news for renters and home buyers alike.

But that’s assuming experts’ forecasts are right.

“If interest rates go up 100 basis points, we’ll be off,” Doug Duncan, chief economist at Fannie FNMA, +2.62% said. “When you sign on the bottom line your willingness to be a forecaster, that’s what you’re signing up for.”

If the past year is any indication, predicting the housing market’s trajectory a year or more out can be something of a fool’s errand. At this point in 2018, mortgage rates had just hit their highest level in years and seemed poised to crack the 5% threshold in 2019.

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