If the commentary from TheStreet.com is on-target, “housing and real estate experts” are largely in agreement about how real estate will fare in the coming year. And if the local Greenwich scene falls in line with their predictions, it will be a good year for home sellers.
That’s not to say the prognosticators haven’t left themselves some wiggle room—a good idea since future events rarely completely conform to expectations. But the drift of TheStreet’s 12 top predictions does point in a direction that holds ample encouragement for Greenwich home sellers. High points:
• There are many factors that point to a “more competitive” housing market. As fewer sellers list their properties, buyers will vie for what’s out there. 2019 found properties on average were on the market for a shorter period of time than 2018– 67 days less to be exact.
• A “return of bidding wars” is possible. Redfin is the most optimistic, putting a figure to the result—with the first half of 2020 notching prices up 6% year-over-year. In the second six months, it expects supply and demand to halve that rate. Though 2019 found the average sales price in Greenwich flat, our team and colleagues in the business experienced multiple bid scenarios in late 2019. Bring more on in the new decade!
• Mortgage rates are expected to “stabilize at the low end”—further encouraging buyers to strengthen offers.
• In the event that a recession occurs, housing won’t be affected. Again, the low inventory picture is expected to shield sellers.
• Overall, with demand exceeding supply and first-time buyers newly becoming “a very significant component” of the market, U.S. home values should rise.
These predictions do fall in line with trends already in place, so no raised eyebrows should result. Potential Greenwich home sellers who are in the process of making up their minds probably won’t be moved one way or the other by the soothsayers. As always, their own individual situation and goals should be the deciding factors but indicators do look promising for a busy 2020.