What to expect if you plan to buy a home in 2020

Dhara Singh Reporter Yahoo Money. December 16, 2019

If you’re planning to buy a home next year, you’ll have plenty of company.

More millennials are expected to jump in the market in 2020 as mortgage rates remain low. But some problems that plagued homebuyers in 2019 – namely a scarcity of homes for sale  – may be alleviated, at least a little, next year.

Here are five key trends experts expect for the upcoming year and how they could affect your home-buying plans. 

More competition

The number of new mortgages going to first-time homebuyers is forecast to increase to 8.3 million over the next three years, starting in 2020. That’s a 700,000 jump from the previous three-year period, according to a recent analysis by TransUnion. 

“We think there will be growth in spite of limited starter home supply,” said Joe Mellman, senior vice president at TransUnion “We’re actually anticipating interest rates will stay low, unemployment at an all time low, and real wage growth over inflation will be positive.”