The 2020 Davenport Real Estate Projections That May Surprise You

Dated: 01/02/2020

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There are two big trends that are kicking off the decade of the 2020s and both will affect Davenport Real Estate Projections here in Florida. 

First of all 10,000 boomers will turn 65 every day for the entire decade and significant groups of these boomers will relocate from the cold Northern climates to Florida. Davenport is perfectly positioned between Orlando and Tampa and close to Disney World, and has room to grow significantly! All you have to do is drive around and see all the open space we have to build upon. It will also be hard for you to miss all the new construction which is not setting around empty, but getting gobbled up by people relocating to the area. The migration to Davenport has only just begun.

Secondly, 10,000 millennials will turn 40 every day for this entire decade. For many millennials, this will be their first home purchase. What's nice about Davenport Florida is there is a great mix of new construction single family homes, townhouses and condos being built, but also many of the existing vacation homes (with pools) in Davenport are turning 10-25 years old. Much of the vacation home market is a bit worn out and dated which is perfectly positioned to be resold to full-time residents willing to invest a little sweat equity and own a fantastic pool home in resort style communities.

Source… KCM Lance Whipple Blog

The 2020 Davenport Real Estate Projections That May Surprise You

The 2020 Real Estate Projections That May Surprise You | MyKCM

This will be an interesting year for residential real estate. With a presidential election taking place this fall and talk of a possible recession occurring before the end of the year, predicting what will happen in the 2020 U.S. housing market can be challenging. As a result, taking a look at the combined projections from the most trusted entities in the industry when it comes to mortgage rates, home sales, and home prices is incredibly valuable – and they may surprise you.

Mortgage Rates

Projections from the experts at the National Association of Realtors (NAR), the Mortgage Bankers Association (MBA), Fannie Mae, and Freddie Mac all forecast mortgage rates remaining stable throughout 2020:The 2020 Real Estate Projections That May Surprise You | MyKCMSince rates have remained under 5% for the last decade, we may not fully realize the opportunity we have right now.

Here are the average mortgage interest rates over the last several decades:

  • 1970s: 8.86%

  • 1980s: 12.70%

  • 1990s: 8.12%

  • 2000s: 6.29%

Home Sales

Three of the four expert groups noted above also predict an increase in home sales in 2020, and the fourth sees the transaction number remaining stable:The 2020 Real Estate Projections That May Surprise You | MyKCMWith mortgage rates remaining near all-time lows, demand should not be a challenge. The lack of available inventory, however, may moderate the increase in sales.

Home Prices

Below are the projections from six different expert entities that look closely at home values: CoreLogic, Fannie Mae, Ivy Zelman’s “Z Report”, the National Association of Realtors (NAR), Freddie Mac, and the Mortgage Bankers Association (MBA).The 2020 Real Estate Projections That May Surprise You | MyKCMEach group has home values continuing to improve through 2020, with four of them seeing price appreciation increasing at a greater pace than it did in 2019.

Is a Recession Possible?

In early 2019, a large percentage of economists began predicting a recession may occur in 2020. In addition, a recent survey of potential home purchasers showed that over 50% agreed it would occur this year. The economy, however, remained strong in the fourth quarter, and that has caused many to rethink the possibility.

For example, Goldman Sachs, in their 2020 U.S. Outlook, explained:

“Markets sounded the recession alarm this year, and the average forecaster now sees a 33% chance of recession over the next year. In contrast, our new recession model suggests just a 20% probability. Despite the record age of the expansion, the usual late-cycle problems—inflationary overheating and financial imbalances—do not look threatening.”

Bottom Line

Mortgage rates are projected to remain under 4%, causing sales to increase in 2020. With growing demand and a limited supply of inventory, prices will continue to appreciate, while the threat of an impending recession seems to be softening. It looks like 2020 may be a solid year for the real estate market.

Whenever you’re ready, Here are 4 ways I can help you…

1. Join one of our "Daily Home Tours"

Come along on one of our “Daily Home Tours”, where we preview up to six homes that are for sale in the area. We hold tours at 10 am and 1 pm daily in and around Champions Gate, Clermont, Davenport, and Kissimmee. To join one of our Tours – Click Here: 

2. Get a FREE “Home Loan Report”

Whether it's your first home, and international loan or you are refinancing your existing home, let us help you with your home loan decision with a free report and expert resources – Click Here:

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Questions about the value of your home? Just click the following link and we can get put together a sharp estimate for you. Click Here:

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Thinking about selling? Curious about which repairs or improvements will help you sell faster or for more money? Schedule a free, no-obligation review. Start Here

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Lance Whipple PA

Lance is a Retired Air Force Officer and skip-generation real estate agent -- his grandparents ran a real estate brokerage in Oregon during the 1960s and 70s. Lance helps mainly vacation home investor....

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