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Date Archives: December 2019

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Richmond, VA | 30 Posts
December
24

 

This coming year the housing market will be defined by 3 things- inventoryinterest rates, and appreciation.  But the biggest issue the housing market will face in 2020 is an inventory shortage.  There aren't enough homes on the market for buyers, especially on the lower end of the market. This is a topic that has come up frequently within the past several months.

Based on what is forecasted, we know that interest rates are projected to remain low and that appreciation is expected to continue as we move into 2020.  Additionally, the upcoming election will provoke many unique perspectives on the health of the US housing market. The challenge will be understanding what is actually happening and how you can best position yourself if you are thinking of buying or selling your home.

Here are several perspectives to consider on the inventory issue facing housing next year:

According to realtor.com:

"Despite increases in new construction, next year will once again fail to bring a solution to the inventory shortage that has plagued the housing market since 2015. Inventory could reach a historic low as a steady flow of demand, especially for entry level homes, and declining seller sentiment combine to keep a lid on sales transactions."

Diana Olick at CNBC:

"Inventory has been falling annually for five straight months, after it recovered slightly toward the end of last year, due to a spike in mortgage rates. Rates began falling again by spring of this year. Homebuilders have been increasing production slowly, but it's not enough to meet the increasingly strong demand."

George Ratiu, Senior Economist with realtor.com

"As millennials — the largest cohort of buyers in U.S. history — embrace homeownership and take advantage of this year's unexpectedly low mortgage rates, demand is outstripping supply, causing inventory to vanish. The housing shortage is felt acutely at the entry-level of the market, where most millennials are looking to break into the market for their first home."

Bottom Line

The most important thing you can do is understand what is happening here in Richmond and your defined market by connecting with me to do a market review.    You may not be able to avoid some of the issues brought on by low inventory, but you can be educated and prepared.  

 

December
10

All signs indicate another successful 2020. Increases in total jobs, existing home sales, median home price increase, new housing starts and a slight increase in the 30-year mortgage rates are heading our way.  

 

 

Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information on this site was last updated 08/18/2022. The listing information on this page last changed on 08/18/2022. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of CVRMLS (last updated Thu 08/18/2022 1:07:51 AM EST) or Bright MLS (last updated Thu 08/18/2022 12:56:29 AM EST). Real estate listings held by brokerage firms other than Joyner Fine Properties may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. All rights reserved. --

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Agency License Information: Joyner Fine Properties and its agents are licensed in the Commonwealth of Virginia.

 


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