Whether you’re a real estate investor or someone looking to buy or sell a home, you have probably figured out that success in real estate is all about trends. Knowing if the market is currently favoring buyers or sellers can be the difference in a successful real estate transaction or a failure. As 2019 comes to a close, let’s take a look at some of the trends that should shape the market in 2020.
Continued Recovery
The economic downturn of 2018 had a positive impact on the real estate market in 2019. A 19.7% increase in investments in 2019 meant that over 470 billion dollars flooded into the market in the bounce-back of 2019. Forecasters believe this trend is likely to continue as investors continue to focus on low vacancy rates of rental properties in markets all over the country. Despite the crash of 2018, real estate continues to be one of the most secure investments you can make going forward.
Know the Market
As is the case with any business venture, knowing your customer base is vital. Shockingly, market research shows that millennials are currently making up a baffling 45% of the buyers in the country. Millennials say they prefer homes that are either upper-class or at least upper-middle class, which means they are willing to spend significant money to obtain the home they want. Millennials do extensive internet-based research before making significant purchases. This means that you should find ways to effectively market your property (whether it’s for rent or sale) online to get it in front of the largest group of potential buyers possible.
Life in the Burbs
The pricing increase mentioned above had its most impactful price hike on properties in urban areas. Large metropolitan cities have become more and more expensive to live in, which has driven people to look for homes on the outskirts of sprawling metropolis areas. Suburbs are becoming more and more popular as the millennials who are flooding the housing market become parents and establish families. Don’t be afraid to invest in properties in the suburbs going forward.
Real estate is an ever-changing market, and the only way to succeed is to stay one step ahead of the trends.