The Nashville real estate market broke all kinds of records in 2019 and it looks like we may have another banner year for real estate in 2020. Here’s a look at some of the data that we’re keeping an eye on:
2020 National Forecast
Last year, the average home values increased nationwide by 3.5% year-over-year, but the new CoreLogic Home Price Index Forecast is predicting that home values will increase at an even greater rate of 5.6% in 2020.
Nashville Ranked #3 Market
The local real estate market in Nashville is expected to fare even better than the national average according to The Urban Land Institute which has Nashville ranked as the #3 Real Estate Market to Watch in 2020.
2020 Mortgage Rates
It appears that interest rates will not be a burden on homebuyers as Freddie Mac and Fannie Mae, each expect rates to average around 3.6% to 3.7% throughout 2020. These low rates will continue to give potential homebuyers more buying power even as home prices increase.
According to CoreLogic and RTI Research, three out of four millennials feel that they could qualify for a home loan. Furthermore, despite rising home prices, 25% of millennials surveyed planned to buy a home within six to eight months.
The Presidential Election Effect
We do predict, however, there will be one speed bump in the real estate market next year.
The Presidential Election.
According to Meyers Research, if you are planning to sell your home, it might be wise to do so before November as that is historically when we see a major shift in home-buying activity during an election year. November is normally a slower month in real estate to begin with, but people and businesses usually freeze many of their big purchases until after the elections due to so much uncertainty.
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