Realtor.com predicts dip in South Florida housing market in 2020

    The housing market in South Florida will have a decline in both sales volume and prices in 2020, according to the experts at Realtor.com.
    The Santa Clara, California-based home listing company, part of News Corp. (Nasdaq: NWS) and the operator of most MLS listing services in the nation, predicts a 1.8% slowdown in U.S. home sales in 2020.
    For South Florida, Realtor.com predicted a 1.1% dip in sales volume and a 1.2% drop in price.
    So far in 2019, sales volume has been up slightly in South Florida, with modest gains in value.
    Nationally, the biggest issue will be the lack of supply of homes in price ranges that buyers can afford. New construction will mostly be for the upper tier of housing, not for first-time homebuyers.
    “Although economic output is expected to soften – influenced by clouds of uncertainty in the global outlook, business investment and trade – real estate fundamentals remain entangled in a lattice of continuing demand, tight supply and disciplined financial underwriting,” said George Ratiu, senior economist at Realtor.com. “Accordingly, 2020 will prove to be the most challenging year for buyers, not because of what they can afford but rather what they can find.”
    Luxury homes will likely sit on the market longer in 2020, requiring greater incentives to close deals. However, markets with relatively affordable homes will see higher sales volume because many millennials are looking for obtainable starter homes.
    South Florida is one of the most expensive markets in the country, so it is a tough place for first-time homebuyers to find a deal.
    Original Content SFBJ

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