December 03, 2019
As we round out 2019, the news is full of predictions for 2020. The coming year will bring a challenge with limited homes on the market, millennials trying to break into the housing market, baby boomers holding on to their properties, and prices stabilizing.
Realitor.com boasts some of the most comprehensive data in the industry and makes its 2020 predictions. “2020 will prove to be the most challenging year for buyers, not because of what they can afford but rather what they can find,” said George Ratiu, senior economist at realtor.com. With limited homes on the market, movers can expand their criteria to ensure they connect with enough homeowners to fill their calendars.
Some say that 2020 could bring the worst housing shortage in US history. The demand from millennials will heat up in the spring, but with weakening affordability and Baby Boomers holding onto their homes, the supply will be low. Direct mail works well in this type of situation as movers can expect to make contact with every possible homeowner who is looking to move.
Millennials, individuals born between 1981 and 1997, are expected to be responsible for more than half of all mortgages next year, outnumbering Generation X and baby boomers combined. Movers need to keep this growing, younger generation in mind as they build out their marketing plans.
As sales are predicted to fall by 1.8 percent and supply reaches historic lows, home prices will rise by a mere 0.8 percent. While a 2020 recession isn’t likely, the economy is expected to soften, and this uncertainty is incentivizing baby boomers to stay put.
The drop in mortgage rates caused an uptick in purchase activity and are expected to stay low next year. Prices will continue to rise as inventory tightens and millennials will be enticed by technology advances in home buying.