Colors are in, a recession is out for 2020. As mid-December approaches, Zillow released a list of five bold predictions for the New Year. The housing market will not be entirely different from 2019, but the houses will continue to get smaller, mortgages will remain low, and housing sales will grow—slow but steady. It may not be the dramatic upswing in production that some would hope for, but slow growth may be a sign of a more stable comeback.
With the housing market stabilizing from the drama of the early years of home price recovery and the subsequent slowdown during 2019’s home shopping season, we have a rare moment of calm to reflect on what housing might look like in the year to come.
If current trends hold, then slower means healthier and smaller means more affordable. Yes, we expect a slower market than we’ve become accustomed to the last few years. But don’t mistake this for a buyer-friendly environment – consumers will continue to absorb available inventory and the market will remain competitive in much of the country.
But while the national story is a confident one, housing in some manufacturing-heavy markets may see adversity. The struggle could be even more stark, since similarly affordable housing markets with a more balanced job profile may be 2020’s rising stars.
Here are our bold predictions for the trends and styles that will dominate the housing market in the first year of the next decade.