Predicting the housing market should be an Olympic event; everyone loves to
predict the ups and downs of the real estate market. As we enter 2020 consumers
are wondering if it’s a good time to buy? What can home buyers expect this year
and is it time to move?
Housing Market Trends 2020
Most analysts agree that 2020 should see a continuation of the momentum which
built in 2019. The foundation for growth is strong with low unemployment
numbers, higher household incomes and high consumer confidence.
Additionally, we are starting to see more Millennials enter the housing market
than ever before.
More and more investors are realizing the value of adding real estate to their
portfolios. Shunting the hassle of owning rental properties, many of these
investors, as well as new participants, are turning to REITs for investment
diversification. REITs that are based on hard assets provide stability as well as
liquidity, making them very popular.
The types of properties held in these funds is changing also. In addition to
commercial and large scale buildings, many funds are adding smaller homes to
their portfolio – taking advantage of the growing down-sizing trend as Baby
Boomers move to their next home.
Market Picture for Buyers
Overall, buyers should find a nice selection of homes from which to choose.
Interest rates are expected to remain reasonable and home prices should flatten
a bit with the increased inventory of homes. All-in-all, 2020 should be a
continuation of the past year with no extreme moves expected in the market.
Before you list your home, you want to feel confident in the market and the opportunity to sell your property at a competitive price. And in Q2 2019, it looks like that confidence is on the rise.
According to the most recent Homeownership Opportunities and Market Experience (HOME) Survey from the National Association of REALTORS®, nearly ¾ of people—73 percent—believe that now is a good time to sell a home. That’s up from 65 percent last quarter (Q1 2019), a jump of 12 percent. The percentage of people who are strongly optimistic that now is a good time to sell is also on the rise, increasing from 37 percent to 46 percent.
The TakeawayThe jump in optimism points to favorable market conditions for sellers. So if you’ve been thinking about selling your home, now is a great time to make a move.
The jump in optimism points to favorable market conditions for sellers. So if you’ve been thinking about selling your home, now is a great time to make a move.