Home Sellers to Remain on Sidelines in 2020

Realtor.com is forecasting that the U.S. housing market will continue to slow in 2020, due to inventory reaching historic lows, and economic uncertainty prompting consumers to pull back on their spending. And, according to the organization’s 2020 housing forecast, this could cause home sellers to remain on the sidelines due to potential dormant price growth and slowing activity.

It’s expected that low inventory (despite construction increases), won’t do much for the housing shortage, especially that of entry-level housing. This trend, combined with falling seller sentiment, could mean a slowdown in transactions. Given this, “there will be little incentive for baby boomers to sell in the coming year . . . (while) the younger Gen X is more likely to upsize and free up entry-level homes, but not fast enough to ease inventory woes,” the report said.