The U.S. Housing Market is Picking Up Steam as the New Year Unfolds

It seems like 2020 could be a big year for home builders. The U.S. market closed out the last month of 2019 with the highest level of new housing projects since 2006. The surge of home starts was even higher than what economists had predicted – by a decent margin. Economists point to the stable job market and low mortgage rates among the factors contributing to this growth. As we head into the new year, buyers and builders alike are optimistic as the market gains momentum.

How Much Growth, and What Does That Mean?

So, the last month of 2019 saw the highest rate of home groundbreakings in 13 years. How much is it actually growing? According to Bloomberg economists:

Single-family homebuilding has risen 11.2%
Residential home groundbreakings rose 16.9% (the biggest in three years)
Homebuilding permits rose to 3.9% at the end of 2019

The rise of single-family housing is particularly important because this segment has the largest share of the housing market. An 11.2% increase is higher than the U.S. has seen since 2007! And what does all this mean? More homes (often entry-level or “starter” homes) are coming to the market, bringing in new homebuyers and possibly converting renters.

Good News: Rates Are Likely Staying Low

Of course, mortgage rates and housing prices play a critical factor in the market’s growth. When mortgage payments stay affordable, more people can afford to buy a home. There’s good news on that front for 2020: Keeping in line with 2019’s low rates, 2020 is expected to see 30-year fixed mortgage rates around the 3.8% mark. This could lead to more renters making the leap to buying a home.

What’s Ahead

Optimism is growing along with the housing market, which is rising alongside a stable job market and low mortgage rates. Groundbreakings have surged at the start of this new year, prospective homebuyers and renters are taking advantage of the low mortgage rates, and the market is looking good. If you’re looking to buy a new home in 2020, keep an eye on rates and new developments in the coming months.

Testimonials

PJ and Tiffany were able to find the exact home they envisioned that checked every mark on their wish list when they decided to build with Tuskes Homes at our Maple Shade Estates Community.

Positive Review for Tuskes Homes in Lehigh Valley, PA

PJ & TIFFANY

Play Video

Lehigh Valley locals Jill & Matt were looking for a home with more space for their family and we were able to deliver everything on their wish list.

JILL AND MATT

Play Video

The Swauger family chose Tuskes Homes and our Wolf's Run community to call home, where Lily finds her dream room- a space she had always imagined.

THE SWAUGER FAMILY

Play Video

Ken and Theresa were looking to downsize after they became empty nesters, and they were thrilled to find a ranch-style home that offered single floor living and a finished basement for additional space.

KEN AND THERESA

Play Video

The U.S. Housing Market is Picking Up Steam as the New Year Unfolds

View Category

Testimonials

Questions? I'm here to help