It’s 2020 and a new decade brings with it exciting new opportunities, as well as unforeseen challenges in the D.C. housing market. More than the Amazon effect, interest rates well below industry norms and a continually stronger than expected job market will bolster an already strong D.C. real estate market. That’s not to say local homebuyers won’t see their share of struggles as demand will continue to exceed supply given the scarcity of housing available.

For those looking to buy or sell in D.C. in 2020, here are three of the biggest challenges you may encounter along the way.

1. The first half of 2020 will be busy, the second half will (likely) be distracted by the election cycle.
This year, real estate is off to a strong start across the country. Consumers are optimistic and eager to make moves in the housing market. However, the closer we get to the presidential election, the less likely consumers will be to engage the housing market as their attention shifts to the current political turmoil.


2. The competition will increase as first-time homebuyers contend with baby boomers and investors. In 2020, with a shortage of affordable real estate, everyone will be competing for entry-level housing. Millennials and first-time homebuyers will not be the only consumers looking for an affordable place to call their own. Baby Boomers will also be in the mix and they might have the upper-hand as they tend to have a great deal more financial clout than their millennial competitors.


3. Consumers will become more exposed to the harsh realities of “do-it-yourself” and discount brokerages.
Successful real estate agents are more knowledgeable and do more than merely facilitate real estate transactions. Homebuyers may save a couple of bucks with a discount brokerage, but buyer beware, consumers should be cognizant of the hidden fees and the lack of guidance provided when it’s time to buy or sell.