2019 was a year of great returns for those who invested in the stock market and those who invested in real estate or purchased or sold properties. With low mortgage rates, it was an ideal year to purchase a home despite the low inventory nationwide. For those selling a home, returns were also consistently high with the majority of sales coming in at a 97% list to sale price return. With mortgage rates projected to stay low for the foreseeable future and the passing of a higher conforming loan limit by the FHFA for 2020, buyers will be presented with a greater array of loan options to satisfy their buying needs thereby increasing buyer demand in 2020. If inventory, particularly in the entry-level price point bracket can increase significantly, the year ahead in real estate will shape up to be another banner year.
For the economy as a whole, it may be tough to beat 2019 stats for it was a year in which the US economy in fact outperformed expectations and broke from recent trends by a significant margin. While the GDP for 2019 was predicted to grow in the first four quarters by 2.0% it actually grew by a compound annual rate of 3.2% in the first three quarters. Similarly, while unemployment was predicted to decrease by .1 % it actually decreased by .4 % to a near 50 year low of 3.7%. Furthermore, employment growth averaged 223,000 jobs per month in 2019! So has the bar been set high after a banner year economically in 2019? Yes, very much so. Will we continue on this path economically as a nation in 2020? Some are skeptical as seen in the article below. In real estate, however, the majority of national market forecasters and this LOCAL RI Realtor feel confident in stating that 2020 looks to be a great year to be involved in real estate in the Ocean State. With several listings of my own set to pop in the early spring all over RI and dozens of buyer searches being done daily for my clients, I can attest that RI real estate will be strong and lucrative in 2020 and I am ready for it!!! Please reach out to me if buying or selling real estate in RI is on your 2020 vision board! I’d love to jump in and guide you along! Happy New Year to all!