It is hard to avoid talk about a recession with the slowing pace of economic growth and the widespread expectation that the lengthy economic expansion, which began in 2009, is nearing its end. National Association of REALTORS ® Chief Economist Lawrence Yun says however, a recession is unlikely in the year ahead, “We expect 2020 will be a year of slower growth but not a recession year. However, an all-out trade war would lead to an economic downturn in every country, including the U.S.”, he says.
What factors are we anticipating in the coming year?
- Low unemployment
- Slow economic growth
- Low mortgage rates
- Modest improvement in housing supply and sales
- Modest improvement in median price
Here is a snapshot provided by the California Association of Realtors ®
What this means for Buyers:
- Low mortgage rates + slow increase in prices = better affordability
- It still can be more cost effective to own vs rent
What this means for Sellers:
- Equity is still building so selling can mean capturing that equity and putting it toward a move-up, relocation, or retirement.
- With low inventory, Buyers may be lining up to purchase your property on good terms.
P.S. There is no such thing as a bad market. Markets go up and down. Plan for it and you will succeed
Do you have questions about the 2020 Forecast for the San Diego real estate market or your are considering buying or selling in 2020, just send me an email or call 619-888-2117.