The month of December has arrived, which means it's time for our annual real estate predictions. Below we've identified 8 key market trends for the coming year. For a look back at our 2019 predictions, check out this article which we published at the end of last year.
Our 2020 Madison real estate predictions
#1: Mortgage rates will remain well below 5 percent.
We're not economists and we're not experts in the mortgage market, but we do know 2020 is an election year. Because of this we expect mortgage rates will remain near historically low levels throughout all of 2020.
#3: Home and condo sales will be roughly equal to the sales levels from 2019.
Buyer activity is strong as we head into 2020, and there are also many people standing on the sidelines waiting for the right opportunity to purchase. A large, pent up demand for real estate should lead to sales totals within 5 percent of the sales totals from 2019.
#4: Home and condo prices will rise by 3 percent.
Due to low inventory and solid demand, we expect another year of price growth in the Madison area real estate market.
#5: There will be more confusion about the market.
Confusing and contradictory messages from political candidates and the media will be the norm in 2020. Some pundits and politicians will claim the economy and the real estate market are as strong as ever, while others will claim they are on the verge of collapse. What's more, politics could impact the normal rhythm of the market that we usually take for granted. We saw this happen in 2019, when the government shutdown during the holidays contributed to a slow start for the real estate market at the beginning of the year.
#6: Expired listings and days on market will rise.
Although it will be a good market for sellers, we expect it will be a little more challenging for sellers than it has been in the past few years. On the whole, sellers will need to put more thought and effort into their pricing, staging, cosmetic updates, home maintenance, and marketing. Because of this we expect the average days on market and the number of expired listings to rise above historical lows.
#7: Competing offers will decrease.
Similarly, the number of competing offers will decrease from the record high levels in 2019, but the competition for listings will still be strong.
8) More consumers will seek local, professional real estate advice.
Due to more mixed messages from politicians and the media, a growing number of buyers and sellers will seek the assistance of local, full-time professionals who have in-depth knowledge of the Madison area real estate market. The good news is all of us at Mad City Dream Homes are here to help you cut through the noise and make sense of our local market. We're well-prepared to serve you with competent and professional real estate services in 2020 and for many years to come.
If you have questions about how you can achieve your real estate goals in the coming year, please reach out to your favorite Mad City Dream Homes realtor for a short conversation. Also, if you're not already doing so, we encourage you to sign up for our newsletter and check in regularly with our blog. Both are excellent resources for anyone looking to stay on top of the latest trends affecting buyers and sellers in Dane County.
For more articles on the Madison area real estate market, check out our market updates blog. We update our blog each month with the latest real estate trends in Dane County.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred