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Top 10 Housing Market Predictions For 2020


We’ve collected some of the most notable housing predictions for 2020 from industry experts, including Freddie Mac, Redfin,© and more.

Here are the trends to look out for!

Now let’s break it down and take a look at what everything really means.

  • The Market Is Not Expected to Crash – Turns out, the sky is not falling after all! There has been tension in the air as a result of a slow global economy and a trade war between the U.S. and China. It has led many to previously believe there will be a market crash in 2020. However, the overall U.S. economy is actually pretty strong on most accounts, including the lowest unemployment rate since 1969 (3.5%), solid wage growth, and steady GDP growth. As a result of this and the other predictions below, Freddie Mac predicts the housing market will “continue to firm” instead of crashing.1


  • Mortgage Rates Will Continue to Remain Low – In 2019, we’ve seen a number of Fed rate cuts that lead to a $789 Billion refinancing surge among single-family mortgage originations. Naturally, lower mortgage rates also increased affordability and purchasing power for buyers, like you. This trend of low rates is expected to continue in 2020. 2 Some financial analysts, like Matt Frankel, CFP of Motley Fool, predict the Fed may even end up cutting rates a couple more times in the coming new year and, “wouldn’t be surprised to see mortgage rates fall to a new all-time low in 2020.” 3 In either of these scenarios, it means 2020 will be a great year for buyers and sellers alike!


  • Home Sales Predicted to Increase – Although the overall inventory of for-sale houses is at an all-time low, the aforementioned decrease in mortgage rates going into 2020 means there is still ongoing demand among buyers. In fact, instead of sales cooling down, it is estimated home sales will rise from 6.0 million (2019) to 6.1 million for 2020.4


  • Home Prices Slowly Rising, Too! – Although prices aren’t expected to rise as much as 2019, a nice profit may still be in the cards if you are looking to sell this year. That’s because, in 2020, home prices are still expected to rise according to Freddie Mac. This modest increase will also help ensure fewer buyers are priced out of the market, while still allowing them to likely see the appreciation on their purchase.5


  • Millennials Will Remain the Majority – For 2019, the National Association of REALTORS© Research Group found millennials were the largest group of home buyers. If that’s you, then you currently represent roughly 37% of buyers in the housing market, and this trend is expected to continue into 2020.6


  • Climate Change Will Become a Buying Factor – 2020 will kick-start the first decade where climate change factors into purchasing decisions. According to, “The financial costs of climate change are already becoming more tangible as fire and flood insurance premiums rise.”7


  • More Competition Means More Balance Between Supply and Demand – Economists at Redfin are estimating one in four offers are expected to face a bidding war in 2020 compared to only one in 10 in 2019. This is expected to tempt more homeowners and builders to list properties, helping improve the balance of supply and demand by the end of 2020.8


  •’s© Top 10 Housing Markets – For 2020, the hot housing markets are basically small towns that are growing up: 1. Boise City, ID; 2. McAllen-Edinburg-Mission, TX; 3. Tucson, AZ; 4. Chattanooga, TN-GA; 5. Columbia, SC; 6. Rochester, NY; 7. Colorado Springs, CO; 8. Winston-Salem, NC; 9. Charleston-North Charleston, SC; 10. Memphis, TN.9


  • Big City Living vs. Back To The ‘Burbs – With millennials now representing the majority of home buyers and reaching the age of having children, buying preferences are changing. Millennials have shown a strong interest in finding locations that offer a hybrid of suburban stability and affordability, mixed with city-like amenities. As a result, suburban communities that offer walkability, fun, and accessibility are in high demand. This trend has even birthed a new term, “hipsturbia”, and has been growing in smaller areas outside of locations like NYC, LA, San Francisco, etc.10


  • Luxury Real Estate Growth – The number of listings for luxury homes is expected to increase in 2020. Add to this the fact that luxury home prices are expected to slightly decrease and you can see it creates the perfect market if you are looking for a more affordable luxury home, either for yourself or as an investment. 11


What does all of this mean? There is a lot of stability going into 2020, despite all the uncertainty that has loomed over this past year. Buyers and sellers alike have a lot to be excited about, so it’s going to be an interesting year!


Make sure you start the year off right by working with a professional who can craft a mortgage solution that works for you this year. Contact a Loan Advisor to get started.



Terms, conditions, and rates are subject to change without notice. This does not constitute a rate commitment. Flagstar Bank, Equal Housing Lender, Member FDIC. Visit  for additional disclosures.

While Opes Advisors, a division of Flagstar Bank, Member FDIC, uses all reasonable efforts to ensure that this information is current, accurate and complete on the date of publication, no representations or warranties are made (express or implied) as to the reliability, accuracy or completeness of such information. Opes Advisors, a division of Flagstar Bank, Member FDIC, an Equal Housing Lender, therefore, cannot be held liable for any loss arising or indirectly from the use of, or any action taken in reliance on, any information appearing in this.