2020 Real Estate Market Outlook
Updated: Mar 6
We are barely two months into the year and the real estate market is already beginning to heat up! Here's some highlights of what's happening in the economy and what it means for the real estate market.
- 2019 inflation rate was 1.76% and unemployment is at 3.6%, which are very low.
- Labor participation rate and consumer confidence are both very high.
- Interest rates are at a historic low!! Money is cheap right now.
- Solid economy is expected to continue despite an intense political climate.We will hear talk of a recession coming, which is likely years away. However, this is not a bad thing. This keeps the economy healthy by letting some pressure off.
What does it mean for the Real Estate Market? This is all good news!
- New-build home sales, existing home sales, and average prices will continue to rise in 2020.
- The current average residential home value is 243,500 in Kent County and $275,000 in Ottawa County.
- There will continue to be a shortage of inventory.
- Average days on market will be short. The current average for Kent County is 26 days and Ottawa County is 38 days.
- Home values in West Michigan will continue to appreciate at a much faster rate than the national average.