2020: Predictions for the Year to Come
With the New Year comes resolutions, aspirations, and goals for what the twelve months will bring. Plus, with this being a whole brand new decade as well, it’s hard to not be extremely hopeful of the year to come.
As part of my job as a Realtor, it’s important that I not only stay on top of the market trends but also make some projections for the year to come to better serve you. Below are a few of my expectations and forecasts for the Omaha-area real estate market in 2020 as well as some other fun predictions.
Mortgage Loan Interest Rates: In my opinion, interests rates will continue to stay historically low around 3.85%-4% (30-Year Conventional Loan) for the first quarter, raise a little in the middle of the year and go back down as we get closer to the election.
Housing Inventory (Existing): I predict that the first half of the year will be strong, meaning the pool of potential buyers and lots of sellers will enter the market in the Spring. I think the upper end market will be strong the first half of the year and then level off the second have with the uncertainty of the election.
Home Prices: Home prices for both new and existing will continue to rise slowly. Last year we saw an overall average increase in pricing at approximately -3% and we will see those numbers continue to trend upwards.
Economic Outlook: There’s been some murmurs about a potential real estate bubble for some time now, but from what I can determine, that is unlikely for 2020 although we may see a level market come Fall. As long as there’s nothing major that impacts the economy, unemployment rates will likely continue to trend lower and and consumer spending still up. Of course each local market is sensitive to particular conditions and we may see some minor ripples through the shakeups at the major Omaha employers such as Union Pacific and TD Ameritrade.
Buyer Trends: With more millennials approaching first time and move-up homes, there is a focus more on features rather than size. Important features include updates, hardwood flooring, great outdoor living areas, and creative storage solutions. Additionally, I think move-in ready and newer under $300,000 will be a hot commodity again this year.
Decor Finishes: While white kitchens are still a classic choice, I think we will see a lot more bolder kitchen designs. Bold painted cabinetry with dark counters and flooring started popping up more in custom-homes at the end of last year and I think we will see more color options trickle down to the general market. Also non-traditional backsplashes for kitchens such as stainless steel or shiplap. Interesting architectural details such as arched doorways, custom windows, and exposed beams are also making an appearance in home renovations.
Hot Purchases: Experiential gifting will be more apparent throughout the new year. For birthdays and holidays there will be an increased focus on gifting ways to learn a new hobby, try a new restaurant, or try a new service instead of actual items.
Oscars: The end of 2019 brought some really great films. I am thinking Netflix will take home some wins with their release of The Marriage Story. Little Women also is a well-beloved story with an all-star cast that I’m sure will do super well come awards-season.
Superbowl: …Wait, never-mind, you’ve met me right? The only thing I’ll predict about football is that I’ll be bringing the chips and queso.
One thing that is not a prediction, but a fact, is that I will be hard at work this coming year making real estate dreams a reality! If buying, selling, building a home, or investing in real estate is in your future, I’d love to be a part of it! Please give me a call!
Cheers!
Megan Owens, Realtor
“Delivering extraordinary care for extraordinary clients.”
Berkshire Hathaway HomeServices Ambassador Real Estate
Phone | 402-689-4984 Email | [email protected]
©Copyright. January 2020. Megan Owens.
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