Housing Market Trends Expected In 2020

The world of real estate investing is always experiencing major shifts. In fact, real estate investment strategies that were once effective can become risky and unprofitable in an instant. In light of this, real estate investors have to be vigilant and up-to-date with every development in the housing market. This article will focus on some of the real estate strategies that we think will still be effective in 2020.

Before delving into the real estate strategies that you should implement, we should first go over the trends that we expect will dominate the US housing market in 2020:

Property prices will continue to increase

Investment property prices have been increasing for the better part of a decade. As a matter of fact, prices have soared past their peak before the recession. Experts predict that prices will continue to rise next year despite a relative cool-off in recent months. The recent CoreLogic Home Price Index Forecast projects a price increase of around 5.4% over the next 12 months.

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Mortgage interest rates are likely to remain at their current levels

The mortgage rate is one of the most important factors in real estate investment. Changes in interest rates determine the type of real estate investing strategies that you could implement. As for 2020, most observers believe that they will stay at their current levels. It’s worth noting that rates have remained relatively low amid a massive wave of refinancing. While nobody is privy to the future monetary policies of the Fed, all signs point toward a light-touch approach on interest rates.

Millennials will be the main driving force in the housing market

Millennials have been driving the real estate market for quite some time now. Recent data from the National Association of Realtors (NAR) has revealed that 37% of all homebuyers in 2018 were Millennials. The reasons for this shift are quite simple. Millennials have simply reached an age where they have enough income to buy a property and are increasingly opting to settle down. As more Millennials reach this age, the trend will continue to gather steam in the next few years.

The disparity between markets will persist 

Different real estate markets are impacted by a wide range of dynamics. For example, certain markets are favorable to buyers whereas others lean toward sellers. This will probably persist for the foreseeable future as conditions will continue to vary from market to market.

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