2020 Real Estate Market Optimism and Predictions in Fairfield County CT
National Association of Realtors (NAR) published the 2019 Home Buyers and Sellers Profile in November. A collection of data and statistics regarding consumer behavior in the real estate market nationally, There is 165 pages of information – I wanted to share a few highlights that will be indications for the market in 2020.
First, the median age of home purchasers nationally is 47 years old of all buyers. It’s the highest it’s been since the NAR has started collecting the data in 1981. First time home buyers median age is 33 years old and that is also on the higher end since 1981, but it is consistent with 2019. Repeat home buyers is 55 years old indicating the baby boomers are now downsizing. Additionally, 25% of home purchasers are 25 to 34 years old, the highest percentage of all age groups. This age group as spent more time either living at home or with friends, or renting in order to save money for their down payments. This year will be a big year for millennials as they are turning 30 years old.
First time home buyers make up nationally 33% of the market. In the Northeast, they make up 39% of the market. That is very valuable information on consumer behavior in this part of the country, knowing that almost 40% is first time home buyers!
The three top characteristics home buyers are looking for when they’re buying a home are desirability of the neighborhood, proximity to their job, and the third is affordability. Location, location, location and price, 2 main factors that we talk about when we are pricing homes for sale.
What are top economists predicting for the 2020 real estate market? Both Fannie Mae and Freddie Mac agree that the prediction is mortgage rates will stay low throughout the year. We are actually 1 percentage point lower than what we were a year ago today, and that will stay low throughout the year which will give buyers more buying power and a higher budget. That’s all good news for the real estate market. We’re expecting here in Fairfield County for the inventory levels to stay consistent with 2019. With a robust economy, labor market, low interest rates, we are optimistic for 2020!