I've Got Real Estate in LGBTQ Places

BY JENNIFER DAY

We compare forecasts for the 2020 real estate market – and how they overlap with places where LGBTQ people are buying property.

IT SEEMS 2019 WAS A BENEFICIAL YEAR FOR BOTH WOULD-BE HOMEOWNERS and real estate investors. The rise in home prices started to slow; mortgage rates dipped to unexpected lows. And many analysts predict a buyer’s market may be on the horizon. All of these trends are good news for anyone looking to buy. So, let’s take look ahead at the 2020 real estate scene.

EXPERTS ANTICIPATE STABILITY

It appears that the economy is currently holding. But with an election year upon us, that could quickly change. When it comes to real estate markets, some speculate that there could be another economic recession and housing market crash in 2020. In its quarterly Home Price Expectations Survey, Zillow asked experts and economists to provide their 2020 U.S. housing market predictions. Less than half (48%) said they expect the next recession to occur in 2020. However, while a housing bubble prompted the last recession, experts believe that a slowdown in the U.S. real estate marketing won’t play a major role in the next one. Survey respondents chose three likely triggers for the next recession: Their prognostications suggested that trade policy, stock market corrections or a geopolitical crisis are more likely catalysts for another recession than a housing market crash.

MORTGAGE RATES LOW

Mortgage rates in the U.S. real estate market hit their lowest point in late 2016 and are now available at rates below 4%, according to Freddie Mac. Experts forecast this trend will stick around in 2020. In fact, mortgage rates might dip even further. Doug Duncan, chief economist at Fannie Mae, was recently quoted saying, “The Fed has moved to a bias toward easing, as global economic activity has slowed. Interest rates have fallen as a result and could move lower if the Fed acts to lower rates as insurance for economic growth.” Freddie Mac also expects mortgage rates for the 30-year fixed-rate mortgage to increase only modestly - to 4.2% - in 2020.

INVENTORY IN LGBTQ PLACES

Forecasters suggest that the overall inventory of available homes for sale should remain stable. And while it’s still a seller’s market in most places, buyers can expect less competition than in previous years. In most cities, homes are now taking longer to sell and price reductions are more common. Combine that with low mortgage rates, and you can conclude it’s a good time to search for a home.

Where should you consider buying? Well, realtor.com based its list of the best places for LGBTQ people to live on areas where same-sex couples are a large portion of the population and local governments have strong anti-discriminatory laws and policies. (Though neither NYC nor LA cracked its top ten.) And PricewaterhouseCoopers recently issued a report on emerging trends in real estate for 2020. Fortunately, there seems to be significant overlap between the two lists in other cities.

San Francisco is ranked first for LGBTQ people and twelfth for real estate markets nationwide. Meanwhile, Austin has the best current real estate market and is the 10th best area for LGBTQ people nationwide. Other high rankers on both lists include St. Petersburg (which landed at third for LGBTQ, 11th in real estate), Denver (fourth for LGBTQ, 17th for real estate), Seattle (ranked fifth for LGBTQ and 10th for real estate) and Portland (sixth for LGBTQ, and 20th for real estate).

Although no one can predict real estate market trends with complete accuracy, experts can offer an idea of where things are headed. Overall, the US housing market predictions for 2020 aren’t overwhelmingly pro-sellers or pro-buyers. The good news for sellers is that there remains a healthy group of buyers looking for new property. And the good news for buyers is that prices aren’t rising at a rate they won’t be able to keep up with.