Housing Trends In 2020 & Beyond

Source: https://www.realtor.com/research/2020-national-housing-forecast/

According to a study by Realtor.com, Millennials are going to make up more than half of all mortgage originations next year. This is due to the effect of supply and demand with home prices prospectively reaching equilibrium as a result of mortgage rates incrementally rising; this as a result of an influx of buyers and mortgage refinancers after an extended supply glut of homes at exorbitant prices.

Millennials that were born between 1981 to 1997 are increasingly becoming first-time home buyers and are projected to make up more than 50% of all homeowners in the US next year. This is due to an aging population with shifting goals: these people will soon become parents that have a need for more stable environments for their families, and are moving out of expensive coastal areas to cities or towns that provide value and affordability.

As the market shifts to that of a buyer's, and as Millennials age and experience a paradigm shift in importance of priorities, the housing market will equalize. Coastal and major metropolitan areas, like Chicago or New York, that once drew in droves of Millennials, also brought along with it increase in housing development costs. During a buyers' market, this might perhaps bring about long duration home sales and an outflux of New Yorkers in a bid to find the best life for their money.

Housing Trends In 2020 & Beyond Housing Trends In 2020 & Beyond Reviewed by Alex Sung on March 19, 2020 Rating: 5

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