Punxsutawney Phil declared spring will come early on Groundhog day, but if you are in the housing industry, you already knew that. The start of the homebuying frenzy that usually accompanies the spring melt has crept all the way up to January. With an increased number of potential homebuyers on the prowl for a new home, builders and other industry professionals are probably wondering how this demand will translate into the price they can list their homes at—and it’s looking good. With interest rates down, inventory tight, and buyer demand up, the cost of a home is rising in many markets nationwide. Find out what the average price of a home is in the U.S. and in your metro area.
Home buying is expected to keep picking up in 2020, with mortgage rates around a full percentage point lower than they were this time last year.
Prices are getting a boost in many markets, too, with housing inventory low across the country. To get a sense of how much you can expect to pay if you are in the market for a home this year, Zillow provided CNBC Make It with figures for what the average home is forecasted to cost in the U.S. overall and in 11 markets across the country in 2020.
The prices reflect the typical monthly mortgage payment for buyers in April 2020, based on a 3.6%, 30-year fixed mortgage rate. The 10% down payments include a typical PMI payment. Your actual rates and mortgage payments will, of course, vary depending on your individual circumstances.