We see the real estate market remaining strong. Robust markets will remain so, with a downturn unlikely. This is based on the fact that strong markets are backed by healthy economies, which we have here in the San Francisco Bay Area. Opportunities are available and jobs are plentiful. 

Unemployment staying low
N.A.R. Chief Economist shared that a recession is unlikely and expect 2020 to continue to grow, but at a much slower pace.
 
Mortgage rates actually being cut in early 2020
The average 30 Year fixed mortgage rate predicted to be 3.8%. The Fed’s low interest rate policy makes purchasing a home in 2020 more affordable, especially among the 46 million 24-35 year olds, the largest segment of buyers in 2019.

Home sales expected to have a modest increase
In the East Bay the lack of housing has been the primary hurdle for buyers. Home owners, especially Baby Boomers and Seniors, are hesitant to sell their home, knowing it may be challenging to find another. Thus, we’ll continue to see more contingent offers. 

Housing supply is not expected to meet the demand
New construction of residential properties will continue, but there’s a long wait until it catches up. some say we’re still a decade away.

We’ll continue to see more Californians moving out of our Golden State than people moving in
The reasons range from affordability, high tax rates, traffic congestion, politics, and wanting to be closer to family. There will be a continued exodus to AZ, TX, NV, OR, ID.

We will continue doing what we’ve always done, building long-term relationships with our clients and referral partners.

There is a lot of new and innovative technology, and some of these tools and systems are helpful to give clients a better experience overall. But, we see clients continuing to choose the value our real estate team brings: consistent follow-through, effective communication, honesty, integrity, local expertise with a global reach.

Our vision?

– Sellers moving on with Smiles
– Handing Buyers Keys to their New Homes
– Memories and Stories being Created, One Address at a time.

How can we help make your 2020 vision a reality?

Wishing you and yours a Healthy, Happy and Prosperous 2020!

Dayna

This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.