Housing Market Forecast & Predictions

Housing Market Forecast & Predictions

Housing Market Forecast 2020 to 2024

All the talk of a housing market crash or recession seems outlandish right now. Employment is super and the stock market is booming.  And, housing sales and prices rose again in September according to NAR, although they declined a little from August.

In October 2019, home sales rose 1.9% from September to an annual rate of 5.46 million homes, up from Septembers total sales of 5.18 million sales, up 4.6% from one year ago. First time buyers were responsible for 31% of sales, down 2% from last month.

That’s pushed prices up a 5.9% YoY according to NAR’s September 2020 report. That makes it 91 straight months for advances (YoY). The median house price rose to $272,100 and average condo price to $248,600 up 4.5% from a year ago.

New Home Sales US

The bad news comes from HUD which reports construction starts were down 9.4% from August, and housing completions fell 9.7 % from August. Single housing starts fell 8.6% from August.  This might be why some experts are forecasting higher prices for 2020 and for the next 5 years.

They’re starting to believe in the strength and persistence of the US economy, yet see that construction will never keep up to demand.

NAR’s Lawrence Yun, reiterated how low interest rates, continuing job expansion, higher weekly earnings and low mortgage rates are encouraging home sales.  New housing construction starts rose in October too, the highest levels since 2007.

Residential starts grew 3.8% to 1.31 million (annualized basis). Single-family home starts rose 2% to 936,000 in October.

The forecast for new construction starts is at a 1.46 million unit pace. Since family starts rose 2% in October, the fastest pace since 2007. Multifamily starts grew 8.6% while permits for future units grew by a hefty 8.2%.

Existing Home Sales NAR

Infographic courtesy of NAR

There are still fears of a housing market crash, spawned by fears of a stock market crash and slowing global economy. Yet, the US economy continues on very well and the global economy is recovering.  Economic and political factors may point to a potential bull market in the US starting in 2020, together with low interest rates, although not good conditions for China (Trade deal looks on thin ice).

October home sales USA

Existing Home Sales — Infographic courtesy of NAR

NAR October 2019 Home Sales Report

Total Existing Home Sales

Total Existing Home Sales – Infographic courtesy of NAR

With tax breaks ending for high end homes, sales of luxury homes should moderate further. Million dollar home sales fell 10.7% YoY. NAR says the hottest cities were Columbus, Ohio; Boston-Cambridge-Newton, Mass.; Midland, Texas; and Sacramento and Stockton-Lodi, California.

See more on the California housing marketLos Angeles housing market, San Diego housing market and a thorough report on US housing on the ManageCasa property management software’s website.

Total housing inventory at the end of October was 1.77 million units. This is a drop of 2.7% from September and down 4.3% from last October (1.85 million units).

Regional homes sales and prices – infographic courtesy of NAR

Housing Starts Outlook Brightens

Builder confidence fell slightly in October, but the new construction stats were the best since 2007. Homebuyers are not as depressed about the outlook. as they see some opportunities to fulfill frustrated demand in the affordable homes market.

Multifamily construction grew strongly, above 8%. If trade deal worries ease and business confidence grows, the spring market could be a hot one.

New Residential home permits starts and completions

New Residential Permits Starts and Completions courtesy of census.gov

Forecast for New Residential Home Construction Next 5 Years

Home Construction Timeline. Next 5 Years. Screen capture courtesy of Statista.com

With 1.68 million homes available, buyers are waiting for the best time to buy. A NAR survey recently suggested that right now may be the best time to buy.

Why would buying this winter be a wise choice?

  • low interest and mortgage rates
  • new housing construction dropping
  • lots of new construction being released
  • recent economic data is positive
  • large number of homes now on the market

The chart below from Advisor Perspectives shows how lasting the last recession was, and that confidence and buying intent still is on the mend. With the recent economic setback overcome, consumer confidence should increase.

2020 Housing Factors Positive

The Job market forecast is excellent with unemployment falling to a persistent 3.6%.  And mortgage rates are forecast to fall.  S&P CoreLogic predicts home prices will rise 5% in the next 9 months.  The hottest cities now are Midland, Texas; Chico, California; Colorado Springs, Colorado; Spokane Washington; and San Francisco-Oakland-Hayward, California. Recession fears are causing some to think now is the time to sell.

The Los Angeles, Atlanta, Tampa SarasotaSan Francisco, San Diego, New York, Boston, Seattle, Houston, Miami and Chicago housing markets are ready to heat up in 2020.

Will the big markets in Florida and California bloom or will the smaller cities continue to draw workers, construction and home purchases? At this point, both look possible. More is better when it comes to housing, so a transition of workers and immigrants to the heartland could have more beneficial effects than many might expect.

This new update and projections for the 2020 to 2024 5 year forecast period ahead for the US housing market offers key facts, data, perspective, predictions, price factors, expert opinion and forecasted trends from top sources such as NAR, Trulia, Freddie Mac, Zillow, Case Shiller, Trading Economics, and more.

Although worries of a housing crash persist, a housing hungry Millennial middle class, and powerful economic performance will any outweigh housing crash indicators. As you’ll see in the charts, videos and opinions below this market is an interesting phase.

This United States Housing Report is the most widely read and thorough update/prediction for 2019/2020, and other housing and economic data to 2026. Please bookmark for coming fresh updates!

Looking for specific sales stats and predictions for major cities: Los Angeles, New York, AtlantaSeattle, Chicago, Philadelphia, San Diego, Miami, Boston, Bay Area, Tampa SarasotaDenver, and Houston. See forecasts for California housing, and Florida housing markets.

Mortgage Rate Forecast

It’s true, mortgage rates are forecast to fall and there’s some good deals for home loans and refinance loans. According to the latest Freddie Mac report, the average rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.64%.

Check out more on the mortgage rate forecast for US lending institutions and firms including Lendingtree, USBank, Bank of America, Quickenloans, Zillow Home Loans, HSBC, WellsFargo, Loandepot, Chase Bank, and more.

Why Will Rates Fall, and When Will They Rise Again?

Should you buy or refinance now?  The forecast is for lower mortgage rate quotes. We may get back to rates as low ast 3.6%.  Lower income buyers would be struggling to buy at current prices and as affordable homes hit the market, they can finally buy.

The democrats are promising to dry up all stimulus money and block President Trump any way they can. This conflict is critical to discouraging housing demand and threaten an economic recession.

Despite poor sales across the nation, particularly in the California housing, Attom Data reports homes are becoming even less affordable (prices outpace wages). Employment and wages are better in California, yet prices are still out of reach for most.

Will Home Prices Fall or Rise?

The Forecast: S&P CoreLogic predicts home prices will rise 5% in the next 7 months. And average monthly mortgage payments could rise from $912 last fall to $994 this September 2019.

In fact, Zillow reports the average price of US resale homes in October at $222,000. Zillow forecasts continued upward pressure on sales prices, rising $12,000 (6.4%) more by late 2019.  It seems it would take a major economic shock or failure to slow the house price trend and crash the housing markets.

Last month NAHB chief economist Robert Dietz: “While home price growth accommodated increasing construction costs during this period, rising mortgage interest rates in recent months coupled with the cumulative run-up in pricing has caused housing demand to stall.”

NAHB’s housing-market index dropped 8 points to a reading of 60 in November, well below economist’s expectations. Despite a positive economic forecast, and strong rental price growth and stock market outlooks, it is rising mortgage rates and political uncertainty that is casting gloom over the 2019 period for housing.

Which are the most expensive cities to buy a home?  San Jose, San Francisco, Los Angeles, and San Diego. Cities with the worst negative equity include Chicago, Las Vegas, Virginia Beach, Baltimore, and Memphis.  San Jose and San Francisco lead the way in positive equity. You’ll find better deals in Philadelphia, Atlanta, Chicago, and Houston. See the California housing market predictions, Florida housing predictions , Illinois housing market and New York housing predictions in more detail.

What’s Ahead for 2020?

The fall elections and 2020 Presidential elections are on people’s minds. Everyone’s eager to buy or sell at the right time and a Trump defeat could send both US stock markets and housing markets crashing.  The best guess is that Donald Trump will win narrowly in 2020 and keep protecting fragile US business startups.

However, new housing construction starts fell by 12% in June and multifamily dropped significantly.  Post free trade adjustments, higher mortgage rates, and economic uncertainty will reduce new home building. Lumber prices have dropped fast, however home prices are predicted to keeping rising. Good news for sellers.

Housing Market Synopsis: The US real estate market continues to grow with rising prices, new construction, supported by a strengthening domestic economy. President Trump as plenty of options to boost the economic forecast and city housing markets from California to Texas to Florida. It is a sellers market across the country, with persistent, buyer demand, despite gloomy housing crash forecasts for the last 4 years which missed the mark.

Check recent house prices in Los Angeles, San Francisco, San Diego, Sacramento, Denver, Chicago, and Atlanta. Also see how the Seattle, Houston, Miami, New York, Boston, Philadelphia and Orlando/Tampa housing markets are predicted to perform this year.

NAR Predicts Prices Will Rise Another 5% by end of 2019

According to new data released by NAR, home prices are still rising although a lack of listings are suppressing sales. It’s been 35 straight months of declines in homes for sale.

Sellers are demanding record prices while first time buyers can’t afford them or the prices of new housing stock being built. On a more positive note is growing listings and a booming US economy. That’s generated price rise forecasts of over 5% this year, or twice that of inflation and wage growth.

S&P Dow Jones Indices Managing Director David Blitzer says. “Home prices are up 54%, or 40% excluding inflation, since they bottomed in 2012. Reduced affordability is slowing sales of both new and existing single-family homes.”

With future mortage rates forecast to be on the decline, this is the right time to refinance. Will where be a housing crash in 2020? Is this the best time to buy a home?

The dwindling numbers of homes for sale are expected to push prices upward in Los Angeles, Philadelphia, San Diego, Boston, Atlanta, Chicago, Houston, Denver, Las Vegas, Dallas,  Seattle, New York and and in Florida. It’s all driven by a wildly successful economy and a resistance by local and state governments to support home development in their jurisdictions.


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It’s an important topic for buyers and sellers who wonder if this is the best time to buy a home or condo in 2019 as home prices and mortgage rates rise.

What’s Driving the California Housing Market?

In California, strong latent and active demand from an eager demographic and economy is clashing with local resident NIMBYism to create despair and homelessness.

Some cities will have their issues, however San Francisco, Seattle, Los Angeles, Denver, Miami, Houston, Sacramento, Philadelphia, Las Vegas and Phoenix look very good right now


Take a look at more detailed reports of major US city markets:  Sacramento Housing MarketSan Francisco Housing Market |  Boston Real Estate Market 2020 | Florida Housing Forecast 2020 | Miami Housing Market |  Los Angeles Real Estate Forecast | Chicago Housing ForecastNew York Real Estate Predictions | Houston Market Forecast |  Philadelphia Real Estate MarketSeattle Housing Report

Despite the market correction, experts feel this bull market could continue as long as business keeps coming back to the US. That’s a long process of repatriation. In the meantime, the US economy, low jobless rate, wage growth, investment, strong dollar, and profit growth are giving real estate participants a lot of optimism.

The US Economy Progress to 2020

These stats from Trading Economics show positive US economic fundamentals that will drive growth in the housing market, and in turn will bolster the economy, since new household consumer spending and housing investment is a key driver of the economy.

As President Trump’s Tax cuts wind down, the Fed has raised interest rates twice in 2019. It’s just one of the issues sparking stock market volatility.  Is it enough to scuttle optimistic stock market predictions? No one is quite sure if its a crash or continued booming cycle. More forecasts though are for a good economy, strong home sales, low unemployment, and a well performing stock market.

Home prices should begin rising again this late spring in FloridaNew York , Boston, San DiegoHouston, MiamiSeattle, Bay Area and the rest of  overheated California.

Buyers and sellers will enjoy reading the market trends, stats, threats, and the key factors including housing construction starts described below. Enjoy the big picture! Scroll down to see the stats, video, and charts on the strongest cities where you might buy or invest. And when is the best time to buy a house?

Inflation, Labor Shortages, and Building Supplies

Labor shortages, rising mortgage rates, and higher lumber costs are looming which could mean house prices will rise.  With nowhere to go, homeowners are resisting selling. The hope that the resale market will come to the rescue might be unrealistic and and perhaps even fewer resale houses will be for sale.

Hottest Cities for Investment Value

This chart from NAR shows where employment growth is strongest and the ratio of recent employment growth to homes being built. That’s a great stat for rental property investors looking for investment income in the best cities.

Compare that to wage growth and actual price appreciation. Again the Bay Area shows the best outlook for employment which has to be your top signal. However, rising oil and gasoline prices and predictions for more, Texas may be your hottest state going through the summer.

Salt Lake City, Denver, Tampa, Dallas, Cape Coral/Naples, Charlotte, Las Vegas, Houston, San Diego, and Grand Rapids have great employment outlooks.

How to Sell Over Asking Price | 14 Ways to Improve Your Selling Price | When Should I Sell My Home? | Best Time to Buy a House

What’s also a good omen is what you’re going to read in this post. It may help you do many things in 2019, from finding employment (see the US Jobs forecast), to understanding politics, discovering high performing best investments 2020 to researching the best cities to live or buy houses or property in.

Interest in rental income investment and apartments is particularly strong now in places like Miami, Dallas, Seattle and San Francisco.  The Los Angeles housing, San Diego housing, San Francisco Bay Area housing markets are just a few to look at.  Seattle, Denver, Boston, South Florida, Palm Beach, Philadelphia and New York  have a promising outlook too.

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If construction rates do moderate, prices in the hot markets of Miami, San Francisco, Los Angeles, San Diego, New York, Boston, and Phoenix should rocket to all time highs but what is the risk of a housing market crashHouse Renovation too is at an all time high in expenditure and this might have an impact on new housing starts.

US Housing Starts to 2024

There you have a quick graphical synopsis of factors that will support a strong US real estate market for 4 more years.

What’s Your Forecast for the next 5 Years?

What’s the forecast and trends for the next 5 years in your region? If you’re in Miami Fort Lauderdale, San Diego, San Francisco, Atlanta, Tampa, and many other US centers, you’re probably grinning from ear to ear.

If housing isn’t your cup of tea, check out the stock market forecast. See today’s stock prices on the NASDAQ, S&P charts and determine if a stock market crash is a possibility.

Housing Market Prediction 2020 | Should I Buy a House Now or Wait?Mortgage Rate Forecast | Mortgage Refinance | Dow Jones Forecast 2020 | NASDAQ Forecast 2020 | Is The  Housing Market Going to Crash? | Denver Housing Market ForecastFlorida Housing Market Predictions | California Housing Market Forecast | Will the Stock Market Crash? | San Diego Housing Market |   Miami FL Housing Market | Tampa Housing Market 2020 Forecast | Chicago Housing MarketAtlanta Georgia Housing Market 2020 | Houston Home Prices | Will Los Angeles Home Prices Fall? | When Will Housing Prices Fall?Bay Area Housing Market | Best Cities to Buy | Housing Market in Toronto | AI Marketing Agency Toronto

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