Updated: Dec 23, 2020
2020 Housing Market Sales and Interior Decor Trends for Single-Family Homes in the U.S.
Housing Market Sales Insights and Trends for Single-Family Homes
Many leading economists and home property market analysts are predicting that the year 2020 will show steady support for the residential housing market. With an increase in jobs and lower mortgage rates, the demand for single-family homes will be strong. Yet the inventory of available homes will be low. The unemployment rate across the U.S. is now the lowest in 50 years, and interest rates have also declined. This data sounds encouraging in many ways, but it is literally producing a squeeze on the buyer's market.
In general, the majority of homeowners are staying longer in their current residences than in recent years, and decidedly fewer new houses are being built. To the benefit of home buyers who do locate and purchase the new homes of their dreams, mortgage rates dropped significantly during 2019. The median rate of the popular 30-year fixed mortgage stayed below 4 percent throughout January of 2020 as revealed in Freddie Mac statistics, although the rate seemed ready to escalate above 5 percent (the 2011 rate) near the end of 2019.
Predictions from the National Association of Realtors are also for moderate growth in the home housing market and lower, more stabilized mortgage rates. Top markets for single- family houses in the U.S. for 2020 are expected to include McAllen, Texas, Colorado Springs, Colo., Boise, Idaho, Chattanooga and Memphis, Tenn., Winston-Salem, N.C., Charleston and Columbia, S.C., Tampa/St. Petersburg, Fla. and Rochester, N.Y. Average mortgage rates will be 3.85 percent, possibly rising to 3.88 percent by year-end.
According to George Ratiu, senior economist of Realtor.com, 2020 is expected to be a very challenging home buyer's year. The difficulty will not be the buyer's inability to afford single-family houses, but rather the shortage of homes for sale. Housing market trend experts warn that the sale of current homes will be hindered by the reduction in supply. However, the average sale price of existing single-family homes nationwide is predicted to increase to $270, 400. This is a rise of 4.3 percent from 2019.
Important Trends in Private Home Buying and Selling in 2020
Yet sales of newly built homes are expected to increase to 750,000. This rising trend equals an impressive rise of 11 percent, which is a 13-year high and definitely a strong and steady upward trend. Especially in some areas of the South and Midwest, more home property building will occur, and this new boost in supply should lessen general home price increases. However, fiercer bidding on fewer homes available for sale may drive the sales prices of some homes higher than expected by buyers and sellers.
Leading realtors expect U.S. housing market trends for home sales to be significantly more competitive throughout 2020. It is likely that one out of four offers on homes will be challenged with a bidding battle. With greater competition, price growth will escalate as much as 6 percent during the first six months of the year. During the remainder of 2020, with more equalized rates in supply and demand of available private residences, price growth may moderate by around 3 percent.
Major Interior Decor Trends for Single-Family Residences in 2020
It is interesting that as the current number of available single-family homes on the real estate market in the U.S. decreases, a strong trend in interior decor for homes is the reversal from minimalist to "maximalist" for 2020. Major trends in home interior design and decoration this year include the following:
• Maximalism in Interior Decor. According to enthusiastic interior decorators for 2020, "Out with minimalism and in with maximalism." This is the year to embrace and celebrate grandeur and excess. The use of big, bold designs and bright colors and patterns is growing rapidly. Abstract paintings are also increasing in popularity for large, dynamic wall displays. Many interior designers are following the trend shift from "less is more" to "more is even better." The main difficulty with this contemporary decor trend, however, is successfully avoiding a cluttered, "hyperactive" look and ambiance in your new interiors.
• Biophilia Design. This is a new trend in interior design and decor. It involves combining natural elements with a human design for an organic, non-commercial effect. Many consumers today desire stylish, updated home interiors. At the same time, they favor the use of green and sustainable materials and items. By including recycled wood and natural plants throughout the rooms of your home, you and your entire household can enjoy living in a clean, healthy and environmentally-friendly home.
A strong trend in home design and decor for 2020 is leaving high-tech influences behind to return to a nature-based interior. With the use of biodegradable metals, natural wood and stone, savvy designers are converting sleek minimalist or industrial-style kitchens and baths into aesthetically pleasing havens that are both earthy and ethereal.
• Engineered Environment Design. This trend in interior design and decoration involves the mixture of the two conflicting elements, nature and technology. It uses science and technology to produce sustainable items that are healthy for you and the environment and that exhibit genuine beauty. It repurposes old wood, plastics, ceramics and other materials to create new items for use in your home. This contemporary collaboration between environmentally-conscious and protective scientists and interior designers is producing some unique new home decor that both tech-savvy and artistic folks, as well as Mother Nature, can admire.
• Velvet Home Furnishings. Velvet is taking over as one of the hottest trends in home decorating this year. The main reason for this elegant fabric's strong and sudden rise to 2020 stardom is its outstanding balance of comfort and luxury. Velvet sofas, love seats and easy chairs will be high on the preferred decor list this year. Yet the color choices are more varied than ever. You can make your selection of rich, brilliant pink, blue, green, burnt orange or aqua.
If this sounds a bit too overstated to suit your taste, the quieter, more sedate color of taupe is also available. This is a shade that you can then adorn with brightly-hued pillows and strident tonalities and patterns in decorative mini-blankets and throws. No need to stop with a velvet couch, for the choices in velvet-covered items of furniture for 2020 are virtually endless.
• Geometric Designs. Patterns and designs in geometrical forms have been somewhat popular in home interior design for a number of seasons. Just as when using bright, vibrant colors, you can easily use an excess of geometry without realizing it. Yet home decorating for 2020 is focused on geometric balances. It stresses creating bold interior design statements in certain rooms or areas of your home like the bathroom, kitchen and breakfast nook or entertainment room.
In these rooms, vivid hues and designs in geometric floor or wall tiles and wallpaper can be quite pleasing. Bright, geometric backsplash designs are currently all the rage in kitchen decor. In other rooms, you can use calmer, less active patterns, colors, and materials or furnishings. This gives you, your household members and guests full enjoyment of this bright, active new decor style as well as a rest from it when desired.
For anyone who finds the new home interior design and decorating trend toward significantly bright, bold and even overstated color, form, pattern and size more than slightly excessive and unmanageable, there is no need for angst or concern. Believe it or not, both "Black and White" and "Neutral Shades" are also prevailing trends in home design and decor for this year.
This may seem odd since strong shapes and colors lead the way in popularity for 2020. However, this year's trends in interior decor are quite generous in allowing home dwellers the choice of calmer, more sedate and serene surroundings as well.