2020 could be the sweet spot for selling
According to Forbes, today's mortgage rates — at about 3.75 percent — will stay low in 2020. At the same time, market watchers expect home prices to continue to increase due to low inventory and high demand.
Without more listings on the market, competition will increase early in the year. Low-interest rates and the lack of starter homes will continue to raise prices.
To meet demand, new construction is thriving. According to the National Association of Home Builders, new construction in late 2019 reached a 20-month high.
Realtor.com reveals Millennials constituted almost half–46 percent –of mortgage originations in September 2019, up from 43 percent in 2018. At the same time, Baby Boomer and Gen X mortgage activity faded.
Boomers are staying in their homes, not downsizing as did previous generations. Older people are working longer and young people are staying at home longer. In 2016, 16.1 percent of senior households had younger generations living with them, up from 14.4 percent in 2005, according to Trulia and Census figures.
But Boomers might be missing a sweet spot in the market, with high demand, high prices, and low inventory. Should they sell in 2020? According to the Federal Reserve, household equity in real estate has more than doubled since its shortage in 2012. Mortgage equity is at an all-time high today. In the next few years, new construction could eat up demand and lower prices.