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.