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Forecasting the future isn’t easy. But, at the end of each year, economists, experts, and analysts use various trends and indicators to make their best predictions for what will happen over the next 12 months. So what are they saying about housing market conditions in 2020? Well, the earliest forecasts are positive. In fact, according to Freddie Mac, the housing market is among the only parts of the economy that looks solid. “Economic growth has slowed significantly across the globe, but the slowdown has been more muted domestically,†Sam Khater, Freddie Mac’s chief economist, said. “However, the housing market remains on solid ground with housing starts, building permits, existing home sales, and new home sales all outperforming the broader economy.†That’s good news, but particularly for anyone thinking of buying or selling a home in the next year. Freddie Mac expects mortgage rates to remain low, price increases to continue to slow, and home sales to beat this year’s totals. In short, the housing market should remain on solid ground despite signs that an economic slowdown is on the horizon. More here.

Because building more homes is the easiest way to solve the problem of too few homes for sale, new residential construction gets a lot of attention. But the number of homeowners listing their homes for sale also plays a role in determining current inventory. And, if new numbers from the National Association of Realtors’ consumer website are any indication, there are fewer homeowners selling houses this year than there were last year at the same time. According to the numbers, new listings have fallen 3.4 percent since last year, with entry-level inventory seeing the largest declines. In fact, the number of homes listed for sale under $200,000 has dropped 15.2 percent year-over-year. Homes between $200,000 and $750,000 fared better, with a decline of 4.3 percent. Homes priced above $750,000 saw the only increase, rising 1.3 percent. What this means is that first-time home buyers and those looking for a mid-tier house may face increasing competition in the months ahead. Buyers looking for affordable homes should make sure to be prepared and ready to act when they find a home that meets their needs. More here.

Naturally, home prices are among the first things potential home buyers look at when deciding whether or not it’s time for them to make a move. After all, they are the easiest housing-market barometer to read. It requires no expertise, for example, to look up homes for sale in any area and get a feel for how expensive or affordable they are. So where are home prices today and where might they be headed? Well, according to the S&P CoreLogic Case-Shiller Indices – which is considered a leading measure of U.S. home prices – current home price trends are holding steady. The latest index shows national home prices up 3.2 percent over last year, which is about the same as they were the previous month. Overall, home price trends show increases have been slowing for a while now and there’s little expectation that they’ll change any time soon. “The U.S. National Home Price NSA Index trend remained intact with a year-over-year price change of 3.2 percent,†Philip Murphy, managing director and global head of index governance at S&P Dow Jones Indices, said. Regionally, southeastern cities saw the biggest increases, with Charlotte, Tampa, and Atlanta recording increases of 4-to-4.5 percent. San Francisco was the only city to show a year-over-year decline. More here.

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes is now 10 percent higher than at the same time last year. That demand remains above year-before levels despite low inventory and rising prices is further evidence that low interest rates continue to help home buyers handle today’s market challenges. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says the trend should continue. “Mortgage applications were mostly unchanged, with purchase activity rising 2 percent and refinances decreasing less than 1 percent,†Kan said, of last week’s results. “Purchase applications continued to run at a stronger pace than last year, finishing a robust 10 percent higher than a year ago. Considering how much lower rates are compared to the end of 2018, purchase applications should continue showing solid year-over-year gains.†Also in the report, average mortgage rates increased across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the FHA, and 15-year fixed-rate loans. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Pending home sales increased for the second consecutive month, according to new numbers from the National Association of Realtors. Their Pending Home Sales Index – which measures the number of contracts to buy homes signed each month – saw a 1.5 percent improvement over the month before. Signed contracts are now 3.9 percent higher than last year at the same time. Lawrence Yun, NAR’s chief economist, says historically low mortgage rates are the main factor driving sales right now. “Even though home prices are rising faster than income, national buying power has increased by 6 percent because of better interest rates,†Yun said. “Furthermore, we’ve seen increased foot traffic as more buyers are evidently eager searching to become homeowners.†But while low mortgage rates are helping to offset price increases, affordability levels are largely dependent on inventory. And Yun says more new home construction is the answer to balancing housing supply with the growing demand for homes. As the number of available homes for sale rises, price increases will slow and home buyers will have more options to choose from. More here.

Considering the popularity of home renovation shows, it’s easy to see why home buyers might be tempted to buy a fixer upper. After all, on TV, renovating a house can be budget-friendly, quick, and even fun. But prospective home buyers, who think they may want to look for a house that needs some work, need to first be realistic. Not everyone has the skills or time to take on a renovation themselves and hiring a contractor can get expensive. Not to mention, all the little details reality TV shows edit out that can cause stress and frustration for an inexperienced do-it-yourselfer. So before you buy a project, be sure you have a good idea of how much work the house will need, how much you’ll be able to do yourself, how much it’ll cost to hire contractors, and what the time frame will be. While a fixer-upper can be a good option for some buyers, it’s not for everyone. Being realistic about whether or not it’ll work for you can help you avoid taking on something that ends up costing you more time, money, and energy than originally anticipated.

Typically, if you’re buying a house, you’ll be required to have it appraised before your loan closes. Part of the reason for this is to ensure you’re paying a fair price for the property. Another is to protect your lender’s investment – since they’re going to be assuming most of the risk. Either way, it’s a good idea to have a third-party, unbiased, professional assessment of the property. Appraisal Institute president, Stephen S. Wagner MAI, SRA, AI-GRS, certainly thinks so. He says it’s important that anyone getting an appraisal know the purpose of having one. “When hiring a valuation professional, clients should first understand the role of an appraiser,” Wagner said. “The appraiser’s role is to provide objective, impartial, and unbiased opinions about the value of real property – helping those who own, manage, sell, invest in, and lend money on the security of real estate.” Wagner suggests asking certain questions to make sure your appraiser is highly qualified. For example, asking about an appraiser’s experience, licenses, certification, and clientele can help you avoid any potential issues that could affect the closing of the loan. More here.

There are several reasons new homes tend to be more expensive than previously owned homes. One is that they’re new. You’re going to pay more for any house that has updated fixtures and features, let alone one where everything in it is brand new. But though new homes generally go for a higher price, new data from the U.S. Census Bureau and the Department of Housing and Urban Development shows they’re currently more affordable than they’ve been in years. In fact, the median price of new homes sold in September was $299,400. That’s 8.8 percent lower than they were last year at this time and the lowest new-home prices have been since February 2017. But while that’s good news for home buyers who want to buy new, it didn’t lead to a significant sales bump. In September, sales of newly built single-family homes were down 0.7 percent, with only the Midwest seeing an increase from the previous month. Still, despite the slight decline, sales are 15.5 percent higher than they were last year. More here.

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates spiked last week from the week before. And though they remain low, rates increased across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Naturally, the increase led to a drop in refinance activity, with week-over-week numbers showing a 17 percent decline. Purchase demand was also down, though just 4 percent from one week earlier. Mike Fratantoni, MBA’s senior vice president and chief economist, says interest rates have been volatile lately. “Interest rates continue to be volatile, with Brexit votes and ongoing trade negotiations swinging rates higher or lower on any given day,†Fratantoni said. But while rates have been volatile, they remain low by historical standards. They also continue to be a motivating factor for potential home buyers. In fact, purchase demand, though down from the previous week, remains 6 percent higher than last year at the same time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

The supply of available homes for sale is limited. So, when you find one that fits your needs and budget, you generally want to move quickly. After all, there could be other buyers, with similar taste, who get an offer accepted before yours is even on the table. These days, that’s especially true. In many markets, there are fewer homes available for sale than is typical. That means, more competition and less time to deliberate before making a decision to buy. But while that’s true, new numbers from the National Association of Realtors show the end of the summer season has provided a little breathing room to interested buyers. According to the NAR’s existing-home sales report the number of days the typical property remained on the market rose to 32 in September. That’s an improvement from August, though no change from year-before levels. Still, while it’s an improvement, 32 days isn’t all that long. And, considering nearly half of all homes sold in September were on the market for less than a month, prospective home buyers still need to make sure they’re prepared and ready to move when they find a house they like. More here.