Is The 2020 Spring Housing Market Coming Sooner Than You Think?

Is The 2020 Spring Housing Market Coming Sooner Than You Think?


At New Western, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.

It may be cold outside, but as far as the housing market is concerned, spring is already here. When competition is this hot, it means the conditions that typically define the spring & summer market are starting now.

If you pay attention to the housing market, it’s no surprise that we’re in the middle of a national housing shortage. But it may come as a surprise that, according to Realtor.com’s 2020 National Housing Forecast, the shortage isn’t ending anytime soon. Rather, it’s projected to continue into the new year, with inventory reaching historic new lows.

What does this prolonged housing shortage mean for investors? On one hand, the housing shortage creates increased demand and higher prices, which is great news when you want to sell a flip. On the other hand, when home prices run high, it’s hard to find discounted investment properties.


Spring Market is Starting Now

Historically, January through March are slow months in the housing market. But this year, thanks to the housing shortage, homes are selling at spring prices despite the winter temperatures.

From 2015 to 2018, April was the top month for potential buyers to view home listings, with 16 percent more views than in January. All that changed in 2019, when January views beat out April in 100 of the country’s largest housing markets.

So far, 2020 is no different. Only one in 10 markets are experiencing inventory growth.

Fewer Homes on the Market

What does an inventory shortage mean for real estate investors? When demand rises and inventory drops, prices go skyward. And when home prices are high, many homeowners make the decision to postpone selling their current homes and buying new homes.

Why? Because they’re reluctant to risk giving up the home they already own, in light of much it’ll cost them to buy a new home.

For real estate investors, this means it’s much more difficult to find discounted properties to invest in.

Higher Selling Prices

The news isn’t all bad, though. High demand means selling prices rise, too, and that’s great for fix and flip investors. In fact, according to Forbes, 8 to 9 million first-time buyers are expected to enter the housing market, starting in 2020.

Buyers are still in the market for homes, thanks to low mortgage rates. Many industry experts predict that interest rates will remain low — even below 4 percent — in 2020. Some even project a decline in home prices in certain markets, which would allow buyers to purchase more expensive homes.

Nationally, however, the median sale price is predicted to increase by 4.3 percent to $270,400. Overall, that’s good news for investors.

The Bottom Line for Investors

So what’s the bottom line? For investors, now is a great time to sell. There’s a strong demand for housing this year, and that’s not going anywhere soon.

Of course, there is a downside: Increased difficulty finding discounted properties to invest in, but New Western Acquisitions offers a solution.

Let us help you find your next property! New Western Acquisitions has access to off-market listings that we’ll align with your investing profile. That way, you can spend your time and energy taking advantage of this hot market, rather than spinning your wheels scrambling to find properties.

Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.