Happy New Year! The start of the year is always an exciting time. It’s a chance to plan for the future and look back on the past year. Getting a perspective on the past year’s trends can help you to see how the future will unfold.  In this article, we’ll take a look at how the real estate market ended and where it’s headed.

With all the housing news in 2019 – from low interest rates to talk of a potential recession – what does it mean if you’re planning to buy or sell a home this year?

Here are a few of the key developments the real estate market experienced in 2019.

Interest rates were low, so money was cheap. While experts predicted a rise in interest rates last year, we saw drops below 4%. These low rates are expected to continue in this year, unless something changes bringing calm to the world economy.

Demand for housing was ample, although supply was limited. It remained a sellers’ market in 2019 across most areas at the low to mid-level price points, with a continued lack of inventory for sale.

Homeownership rates rose, thanks to low mortgage rates. Buying continued to be more economical than renting as rates dropped, and that brought a jump in homeownership rates, according to Census Bureau reports.

Healthy conditions were reported in the job and stock market. This past year had one of the hottest job markets in recent history, with healthy growth through the year. Likewise, the stock market hit record highs, and industry analysts see that continuing in 2020.

Concerns lowered for a potential recession. Economists talked about a potential recession in 2019 or 2020, but those expectations have dropped as the domestic economy is very strong.

Altogether, 2019 brought positive news to the housing market, and 2020 is likely to see the same. You can read more about our predictions for this year’s real estate market here.