2020 will be a challenging year for the housing market.

[Michael Corso]

2020 will be a challenging year for the housing market.

On the one side, there's a strong US economy that has driven the unemployment rate to record low levels, boosting disposable income, which makes a bullish case.

Then, there are low mortgage rates and housing shortages, which add to the bullish sentiment.

"We think the housing market will remain strong for the most part in 2020, as low-interest rates will keep demand high for new mortgages," says Josh Stech, CEO, and Co-Founder of Sundae, a site that helps sellers get a fair price for their house. "We also think there will continue to be shortages of new housing in many markets, which will contribute to overall price growth."

On the other side, there's the problem of affordability, which will put the brakes on the housing market. The Case Shiller Home Price Index in the US reached an all-time high of 218.27 Index Points in September of 2019, making it difficult for first-time home-buyers to afford a home.

"While sellers may be able to ask more for their homes, they're likely to get fewer offers in total due to more buyers being priced out of the market," says Stech. "This could lead to longer listing times and increased stress on sellers who go the traditional route of marketing their homes on the MLS."