The American Dream: there are few people in this nation that don’t know this long-standing tradition. For several decades, those from this country and even others have been longing to achieve the American dream. To buy a home and start a life in one of the greatest nations on the planet, where the streets were thought to be paved with gold, is quite the feat.
Now, people are still working hard every day in order to be able to purchase their one piece of America. The housing market doesn’t always make that easy, though, as it is incredibly unpredictable. Throughout the country, even throughout one single state, the prices and rate of the market shift dramatically from day today. This year is no different. Hang on to your hats, because it’s going to be a crazy ride.
So far, it seems that prices for U.S. homes are steadily rising, but the inventory on the market is declining at an even faster rate. People are grabbing at straws to get their chance to buy a house. The borrowing methods utilized by home buyers in 2020 is also changing, depending on the background of the buyer.
Economists are forecasting even more growth over the next 12 months. Check out the text below and stay up to date on the housing market.
1. Home Sales
Existing-home sales increased in the last month of 2019, a nice rebound following a slight dip the month before, according to the National Association of Realtors (NAR). From November to December 2019, there was an increase of 3.6%.
2. For Sale Home Inventory
Tight inventory continues to be a problem, with first-time homebuyers most affected. US for-sale inventory shrunk 14.6% in December from the month before, and 8.5% from the same time last year.
3. Unsold Housing Inventory
Unsold housing inventory is currently at a 3-month supply, down from 3.7-months from December 2018. That marks the 7th month in a row of declines in unsold inventory from the same times a year before.
4. First-Time Homebuyers
First-time homebuyers were behind 31% of sales in December 2019, a slight dip from 32% seen in November 2019 and December 2018.
5. Days on the Market
Homes typically stayed on the market for 41 days in December 2019, up from 38 days the month before and down from 46 days from December 2018. According to NAR, 43% of homes sold in December stayed on the market for under a month before being sold.
6. Median Price
The median price for a typical US home is $276,900 as of December 2019, up 8% from December 2018.
7. FHA Share
FHA-backed loans made up about 18% of the overall share of the home loan market in the calendar year 2019.
8. 30-Year Fixed-Rate Mortgage Rate
The current February 2020 30-year fixed-rate mortgage rate dropped to 3.45%, and the average rate for all of 2019 was 3.94%. The rate is forecasted to average 3.8% in 2020.
9. Total Home Sales Forecast
Freddie Mac predicts that total home sales will gain momentum and eventually increase to 6.2 million in 2020. Total existing-home sales ended the year at 5.34 million.
10. Home Price Growth in 2020
Real estate research firm Zillow predicts that home prices will increase 2.8% over the next 12 months, after having increased 3.7% over 2019.
11. West Region’s Existing Home Sales
Existing-home sales in the West increased by 4.6% to 1.14 million in December 2019, a 10.7% increase from the same time last year. According to NAR, the median price in the West was $411,800 by the end of 2019, up 8.1% from December 2018.
12. Affordability Remains an Issue
Affordability rankings dropped in 81 metro areas, according to NAR’s Home Affordability Index Ranking and Payroll Job Growth report.
View Current Mortgage Rates Aug, 07, Fri, 2020
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