It’s no secret that the housing market has seen a shortage of inventory. But, inventory may see some change in the near future.
Single-family housing starts will total 1 million in 2020, which is the highest since 2007, according to the National Association of Realtors.
Add that in with the prediction of price drops, and it looks like 2020 might have a bright future for real estate. Lawrence Yun, NAR’s Chief Economist, believes that prices for a new home will drop 4% in 2019 and remain almost flat in 2020, rising just 0.02%. This helps create more affordable houses.
And it looks like more support has been granted to help build entry-level homes. The Federal Housing Administration’s share of new-home mortgage financing rose to 19% in 2019’s second quarter, which is a six-year high.
Real estate experts will be keeping an eye on the year ahead, but it looks like inventory is a top priority.
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