2020 MARKET FORECAST
Since 2017, I’ve been bracing for the next recession. We all know it will come eventually, although most economists are predicting a more normal market correction rather than the devastating recession we experienced most recently. And even though the news cycles are enough to frighten the most lion-hearted, the facts are, the economy is stable. Not spectacular, but steady. And most economists (including Leslie Appleton Young of CAR) agree that the next downturn won’t be driven by the housing market. With unemployment at historic lows and interest rates remaining in the basement, things are actually good.
So what to believe? Well, my advice this year will be the same as last; If you are ready to buy a home, buy a home. Even if the market dips, you’ll still build equity over time. Historically, the real estate market has ALWAYS gone up. And if you’re listening to the folks who are telling you it’s cheaper to rent than buy..well, they’re talking about a monthly budget and not taking equity gains and tax advantages into the equation. Making your dwelling a long term investment is always a good idea.
And if you’re selling, even if you bought as recently as 2 years ago, you probably have equity. Maybe it’s time to move up to your dream home! And with my new affiliation with Compass, I have even more tools to make that a reality.
The charts below show the average market time and sales price for 92104 in 2019. My prediction is you can expect more of the same in 2020—market times under 60 days and prices increasing at much the same rate as the last 2 years.
So bring it on roaring ’20s, we’re ready!!