Housing market to remain a seller’s market in 2020, experts predict

Key in the front door to a home - Photo by PhotoMIX Ltd/Pexels

The housing market is likely to remain a seller's market throughout the United States, according to a survey of 500 of the top real estate agents across the nation that was conducted by HomeLight. This is largely consistent with other forecasts for the local market in Detroit.

Several other experts predict a generally positive housing market forecast in Detroit for 2020. While some skeptics argue that a real estate crash is imminent, the Warrendale neighborhood and other parts of Detroit simply do not have properties that are overpriced to anywhere near the degree that are cited in their alarming predictions.

The housing market is likely to remain a seller's market throughout the United States, according to a survey of 500 of the top real estate agents across the nation that was conducted by HomeLight. This is largely consistent with other forecasts for the local market in Detroit.

There is one cautionary note in the data released yesterday. While it is still a seller's market, with demand significantly outpacing supply in many parts of the country, there is a danger in overpricing a home that is for sale. No matter how hot a market is, there is always an upper limit to what buyers are willing to pay.

Individuals who are looking to sell an existing home in 2020 still have to balance their own desire to get the highest possible price with a realistic understanding of what the real estate market will bear. This is one of the key areas where the advice of an experienced real estate agent who knows the Detroit market can be invaluable.

With a cautionary note about overpricing duly given, the overall outlook for the housing market in Detroit for 2020 is a positive one. Existing homes that are in good condition and reasonably priced should continue to sell well. Moreover, the prices that these homes are sold for should continue to climb at rates that significantly outpace inflation.

My note about existing homes being in good condition is an important additional caveat. One of the things that the recent data also showed is that, as prices continue to climb, buyers are beginning to insist on more repairs being done to the home before they take possession.

This trend at the national level continues to be seen at the local level. Homes in the Warrendale neighborhood that are in good condition continue to command top dollar. Meanwhile, existing homes that are in poor condition and need many repairs are languishing unsold for months at a time.

Again, one of the things that an experienced real estate agent can help sellers with tremendously. They can point out what repairs are most likely to be an issue for the buyer and where to best invest a home improvement budget.

This, course, is simply a summary of their 43-page report. The full forecast of the housing market for 2020 is available in its entirety here.