As we head toward a new decade, I wanted to talk to you about a few things that you can expect from the real estate market in 2020.
The new year is almost here, but what’s 2020 going to look like for our real estate market? First, we can use history to predict what will happen in the future.
From December 2018 to January 2019, we saw a 42% increase in new listings. That’s not surprising, because people tend to wait until after the holidays to list their homes. This means that the typical balance of supply and demand starts to balance out a bit. Therefore, appreciation and sale prices might not be as high for those first few months of the year.
As the year goes on, we should see some more appreciation and higher prices. This will encourage more sellers to get into the market, which will flatten prices and appreciation again. That’s why timing is so important if you’re thinking of buying or selling this year.
We know a recession is coming, but we don’t know when. How might a 2020 recession impact the Raleigh real estate market? Redfin recently did a study of 50 metropolitan areas and had Raleigh as the 5th-lowest city in terms of how much the recession would affect us. This means we’re pretty insulated.
The more a city is dependent on global trade, the harder it would be hit by a recession. Our market isn’t very dependent on global trade, as you can see.
What’s interesting is that Charlotte is the 10th-highest on the scale in their study, which suggests they might be impacted a bit more.
If you have any questions about my predictions or about buying or selling a home in 2020, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
Teaser: Since 2019 is drawing to a close, today, I want to take a look forward to 2020. A lot of people have been asking me what they can expect from the real estate market, so I’m going to offer up some of my predictions. Based on the numbers from December 2018 to January 2019, we should see a significant uptick in inventory come January 1. How will that, along with a possible recession, affect our market? To find out, watch my latest video.