Chief Economist Dr. Lisa Sturtevant predicts a strong year for real estate in 2020
Virginia’s largest trade association has released its first Economic & Housing Market Outlook, taking a look at what’s ahead for Virginia in 2020.
Dr. Lisa Sturtevant, Chief Economist of Virginia Realtors, has analyzed economic and housing market data in order to create an outlook regarding Total Jobs in Virginia, Home Sales, Home Prices, New Home Starts, and Mortgage Rates.
- Total Jobs in Virginia: Job growth has been strong in Virginia for the last several years, and this trend will continue into 2020. We expect about 48,000 net new jobs in Virginia in 2020, a 1.2% increase over 2019. Dr. Sturtevant says, “Despite talk of a national recession, the economy here in Virginia is strong and should be insulated from any national downturn, if it happens.”
- Home Sales: In 2020, we’re forecasting 129,343 total home sales in Virginia, up 3% over 2019. Two key drivers of home sales are job growth and the growing millennial population entering the age group of first-time home buyers.
- Home Prices: We predict home prices will continue to rise in Virginia in 2020, and the median home price will be $308,819, a 4.6% increase over 2019.
- New Home Starts: In regard to new home construction, our estimate is that in 2020, there will be 35,450 new housing starts, an 8.9% increase over 2019.
- Mortgage Rates: The 30-year mortgage rate has been at historically low levels throughout 2019. There is no evidence to suggest rates will rise significantly in 2020. The 30-year rate will end up around 4% at the end of 2019, and we’re expecting it to hit 4.25% by the end of 2020.
Click here for more details on the Virginia Realtors 2020 Economic & Housing Market Outlook.
Click here for the Virginia Realtors 2020 Economic & Housing Market Outlook infographic and summary video.