2020 Real Estate and Mortgage Outlook at a Glance
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Steady job growth, rising wages, low mortgage rates: The conditions for a solid housing market are lining up. Whether it is for a primary residence, a second home, or investment purposes, buying property in a booming housing market can help diversify and grow household assets.
Strong Housing Market Projected for 2020
Low Mobility
Homeowners are staying in a home an average of 10-13 years — an all-time high — up from the historic average of 7 years.
Slow Inventory Growth
Housing inventory is projected to expand in only one out of every 10 markets in 2020. Inventory remains especially tight in western and southern states. Source: National Association of Realtors, 2020 National Housing Forecast
Down Payment Woes
First-time buyers struggle with having the funds required for a down payment: 80% of millennials say that not having enough money for a down payment or for closing costs is an obstacle to homeownership. Source: Freddie Mac, "Profile of Today’s Renter & Homeowner," 2019
Primary reason Americans think it is a good time to buy a home
35%
FAVORABLE RATES
27%
FAVORABLE ECONOMIC CONDITIONS
12%
MANY HOMES AVAILABLE
8%
LOW HOME PRICES
5%
EASY TO QUALIFY
5%
DON'T KNOW
For more information, contact your Key Private Bank Advisor.