So far, 2019 has been a promising year for homebuyers and real estate investors in the Houston housing market. From the first quarter of this year, the rise in prices started to slow down, and the mortgage rates dipped to surprising lows. If you specifically talk about Houston, the housing market of the city performed significantly better than in 2017.
Economists, experienced realtors, and industry leaders believe that Houston is on the verge of economic growth. The unemployment rate is down, whereas the job market is robust; all these make it the best time to invest in Houston’s real estate market. But before putting your money into Houston’s real estate, you will probably like to know what housing trends will be there for the next 20 years.
We have entered the last quarter of 2019, and it seems that Houston is still a seller’s market. Some economists and housing experts have predicted the next recession is likely to begin in 2020. After knowing about this anticipation, you must have started to have a lot of questions. While no one can make accurate predictions about future trends, we can anticipate based on thorough research. Let us take a look at the current real estate market trends to predict the real estate market forecast for mortgage rates, home sales, home prices, and more.
Home Prices and Appreciation Will Grow at a Slower Rate
In 2019, NAR predicted that the national median home price to be increased by 3.1% from 2018, which makes around $266,800. Almost three months far from 2020, NAR predicts an increase of $274,000 in the median home price. This indicates that house prices in Houston will continue to rise in the upcoming years. Furthermore, most of the first-time homebuyers in the city will continue to rent. Experts have similar predictions for home appreciation rates; a report shows the average expected appreciation rate for houses to be 3.7% over the next year.
New & Existing Home Sales Will Remain Low
Compared to the first quarter of 2018, home sales have been slowed down since the beginning of 2019. Some real estate experts have predicted that this trend will occur again at the start of 2020. Moreover, a survey reveals that the demand for buying a home will be lower in the next year. However, this trend can after a couple of years.
Mortgage Interest Rates Will Remain Low
In late 2016, the mortgage rates hit their lowest point; however, today, mortgage rates are below 4%. Many real estate experts forecast that this trend will remain stuck in 2020 and probably change over time. Some experts even believe that mortgage rates can go lower. Bankers Association predicts that 30-year mortgage will be between 3.9% and 4.1%.
While no one can predict that housing market trends with complete accuracy, thorough research can give us an idea of where the real estate trends are moving to. Overall, the housing market of Houston shows favorable trends for 2020 and the upcoming years.