Being successful in real estate is all about knowing the trends. Whether you’re a real estate investor, looking to sell your home, or planning on buying a home this year, coming out on the good end of the deal hinges on finding a way to be ahead of the trends. Here’s a look at some of the trends that are expected to dominate the real estate market in 2020.
A large number of economists have forecast a recession to hit the US in 2020 or 2021. Fortunately, it’s not expected to impact the housing market as significantly as other areas this time. A myriad of factors could put the housing market in a more stable position in the event of another economic downturn.
Several experts believe that due to high demand and limited inventory that real estate prices will continue to rise. Daryl Fairweather, chief economist for Redfin explains that the demand for housing is still high, but there is a sharp downturn in new listings coming onto the market. This will benefit you greatly if you’re looking to sell a home, but if you’re a buyer you may need to wait things out.
Suburbs on the Rise
The mass move to urban areas that defined the early 2010’s is now in decline and people are moving back into the suburbs. This fact is compounded by the fact that the same millennials that flocked to urban/metropolitan areas a decade ago are now having children and want them to grow up in a more suburban area.
As millennials are looking to upgrade from small urban apartments, baby boomers are looking to downsize. Now that their children are grown up, moved out, and having children of their own, many baby boomers have decided they no longer need the large homes and big yards that require significant maintenance. Many of them are looking to multi-family housing options and opting to rent instead of carrying a mortgage into their golden years.
The housing market is always subject to change. A couple big events could easily shift things from a seller’s market back to one that favors buyers. What’s important is that you are aware and ahead of the trends as they come.