Boom OR Bust For The 2020 Housing Market??
For the majority of 2020, the U.S. housing market is expected to remain strong says Yahoo as millennials are predicted to drive the market. Most of these individuals turn 30 next year and will consider buying their first home. In fact, millennials are anticipated to take up half of all mortgages next year, surpassing both Generation X and Baby Boomers, per Realtor.com.
Additionally, the 30-year fixed-rate mortgage for 2020 are expected to remain near historic low levels. Freddie Mac and Fannie Mae said that such rates will average around 3.6% to 3.7% through 2020. To top it off, healthy domestic economic growth, despite trade jitters and record low unemployment rates will boost disposable income, leading to higher demand for new homes next year.
The last housing bubble which had been inflating for over a decade before it collapsed had been driven by significant risks such as highly questionable mortgage lending guidelines which included stated income, stated assets, no-documentation loans, and adjustable-rate loans which turned disastrous for many borrowers states Forbes. These days are long gone!
To sum it up, experts say there is low probability of a housing crash in 2020. Currently we see little excessive risk and combined with modest overvaluation, the probability of a damaging housing crash is limited.
Are You Planning on Buying, Holding or Selling?