2020 Housing Market Outlook

Higher Home Prices 

Overall, national home prices grew slower in 2019 (3.3 percent) than in 2018 (5 percent). 2020 seems like it will be no different. In fact, real estate gurus predict that home prices will rise by 2.9 percent. So, you’ll likely see home prices continue to creep up. Inventory will also be a major factor in pricing. New construction projects have been popping up throughout Alexandria. This will also help with inventory.  

Economy 

Consumer spending has picked back up, reflecting healthy consumer confidence. Job creation is on a steady path and annual wage growth has stayed at or above 3 percent since October 2018. Here in Alexandria, economic and home-value growth should continue into 2021. Even if a recession hits, it is not expected to affect our local or national housing market.  

Millennial Factor 

Once again, millennials took the lead as the largest group (37 percent) of home buyers last year. What does this mean for home sellers? Millennials are more concerned about their commuting costs and how close their new home is to great schools. They are turning away from the sprawling mansions and buying smaller homes that are convenient and of great quality. This means split level and space efficient homes are back in vogue. This also doesn’t mean that baby boomers are getting left out of the situation. 55-plus communities are now popping up in Alexandria. These communities like Walhaven at Kingstowne are offering three-level townhomes featuring private elevators, two-car garages, and designer kitchens. Baby boomers might be downsizing, but they are also choosing a high-end, low-maintenance lifestyle.  To hear the whole in depth conversation on 2020 predictions, check out The Patt Pod: the new podcast from The Patterson Group.   [audio mp3="https://alexandriastylebook.com/wp-content/uploads/alexandria/2020/01/Patt-Pod-Episode-1.mp3"][/audio]