The Bay Area and California has witnessed years of a Real Estate boom. Even though thought things slowed down a bit in 2019, the latter half of the year has proved the market’s strength. The following are four predictions for the 2020 real estate market:
Prices will Remain Stable or Possibly Dip Slightly
While mortgage rates are currently low, the anticipation of increased mortgage rates along with continued high home prices make it very likely that the housing market will see more price stabilization or even a modest decrease in pricing. Despite such, the real estate market will still be ideal for buying and selling with the strong economic conditions of the Bay Area.
Increases in Inventory
A common issue over the past several years has been the lack of inventory in many areas, particularly in the Bay Area. We anticipate this will change in 2020 as prices stabilize and mortgage rates rise up. The increased inventory is great news for home buyers. The selection will allow families to have the ability to choose among a diversity of houses and be more picky about their dream home.
Affordability Issues Will Continue
The slight slowdown and change in the housing market will not have any impact on the big issues of affordability in the Bay Area. The price of housing is not suddenly going to drop dramatically and incomes are going to stay at similar levels. In fact, according to the C.A.R. (California Association of Realtors), only 32% of Californians can afford a home. This will also be a contributing factor to the change in the 2020 market compared to the last few years.
Rental Rates will Rise
The challenge of pricing goes beyond just home prices. Rental rates have been rising at dramatic rates throughout the Bay Area over the past decade. This doesn’t appear to be slowing down due to the high number of renters within each community. Quite simply, demand for rental units exceeds supply.
Should you have questions about the 2020 real estate market in any of the East Bay cities such as Pleasant Hill or Martinez, contact the top realtor in these areas, Laura Wucher at 925-595-8047.