It is no question that the housing market is a tricky thing to deal with. Economics, as a subject, has never not been complicated. We are here to hopefully help you better understand what the housing market will look like in the new year of 2020 so that you can make the best decisions to suit your financial needs. The outlook for this year is looking rather optimistic compared to the last ten years or so. We hope to explain all the nitty-gritty details in a way that can hopefully help you get the most from your home buying or home selling experience. Buying or selling a home is never an easy decision to make and many times, it’s hard to even know where to start. Selling a home is risky, but we’re here to make it as easy as it can possibly be. El Paso Cash Home Buyers is here to help you navigate through this tricky system.
Optimistic but Slow
Overall, the outlook for the 2020 housing market is looking pretty optimistic for home buyers and home sellers, but there are still some drawbacks. Things are looking probably the best that they’ve looked within the past ten years or so, but we’ve had a long road of recovery from the 2008 recession and housing crisis. In regards to the last ten years or so, things might seem great but compared to the last fifty years, we’re still not at our best.
We have developed a strong job market, which means that more people (young people especially) are ready to buy homes as they start their professional and lifelong careers. Mortgage rates are also significantly lower than they have been since 2000. This means that people purchasing new homes will get better deals in regard to how long and how much they pay for their homes every month.
Not Enough to Go Around
Unfortunately, there are not enough homes being built and there are not enough people moving out of their homes to make up for how many people are now entering the housing market. The problem this year isn’t necessarily the cost of housing, but finding a home in the first place. More homes need to be put on the market to account for all the new families that need places to live.
Given everything that was just explained, if you are looking to sell your home, you are more likely going to get more for it than you would have just a few years ago or even last year. The sale price of an existing home is expected to go up as much as 4.3 percent this year, but the expected existing home sales are thought to go down by 1.8 percent. Putting your house on the market can wield a lot of cash, but it might take a while to find someone who is willing to buy it.
The initial prices of homes are expected to increase, but mortgage rates are actually expected to go down with these new home sales.
Hispanic neighborhoods, in particular, are expected to find price increases because there is such a high demand for housing in these areas because the Hispanic community is the biggest amongst new home buyers.
Home sales are, without a doubt climbing, but they are doing so very slowly. This is making the housing market even more competitive than it was last year. Finding a house is more difficult with unemployment steadily decreasing as well as mortgage rates.
However, builder confidence is higher than it’s ever been in the past two decades. This means that more houses are looking to be built this year. It’s still not great compared to the last fifty years, but compared to the last ten, we are doing a lot better.
So what does this all mean? Well, it means that the housing market is about to get a lot more competitive. For example, because of a steadier job market, purchase applications will slightly rise, but because of better mortgage rates, more people are looking to stay in their homes longer and seek out less refinancing options. This is great news if you are looking to sell your home, but not so much if you’re looking for a new one. It’s a bit of a double-edged sword right now, but things are slowly being to look up and all of these complicated numbers might actually become more evened out toward the end of 2020.
How We Can Help
Lucky for you, if you are looking to sell your house, you don’t need to look any further. We buy any kind of home in almost any condition. You leave the “find new owners” part to us. If you have any questions about selling your home, don’t hesitate to contact us. We are here to help you make selling your home less complicated and quick.
Has your home been on the market longer than six months? If it has, there are reasons behind it and some of them are no fault of your own. Selling a home in the El Paso market is tricky. While our beloved city is certainly expanding (Forbes once named it one of the fastest-growing cities since the 2008 recession), the real estate market in the Sun City can be a hit or miss.