2020 Real Estate and Mortgage Outlook at a Glance

March 2020

2020 Real Estate and Mortgage Outlook at a Glance

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

Be Aware of Headwinds that Include
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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

Favorable Rates and Economic Conditions are Driving Home Buying

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.

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NOTICE: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. Information and offer are subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states.

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