What is the USA housing market going to be like in 2020? Although this may seem like a straightforward question, it can be really hard to answer. There are many things that influence the US housing market. Therefore, taking them all into account and producing a meaningful prediction is something even the best real-estate economists struggle with. But, by doing ample research and studying the modern history of the real-estate market we’ve come up with certain USA housing market predictions for 2020 that should help you out. So, let’s jump in.
Our USA housing market predictions for 2020
What’s 2020 going to be like for real-estate? Good, but not as good as the previous years. So, should you buy a home? Well, let’s elaborate. The USA housing market has been growing since the 2008 crash. Since there haven’t been any large booms or turbulence, the steady increase shows promise for future buyers. But, in order to be wise with real-estate you need to be aware of a common fallacy that usually plagues gamblers. And that is “just because something is going well, doesn’t mean that it will keep going well“. The USA housing market, like any market, has its limits and setbacks. And our understanding of it tells us that 2020 is definitely going to be a year where the housing market starts to slow down considerably.
Is 2008-like crash imminent?
No. The real-estate market crash of 2008 happened due to many factors. But, most of all, it happened due to misinformation, greed, and stupidity. Not that those three are not present in today’s economy. But, the people who have been hit by the 2008 crash have learned a thing or two from it, which is why it is unlikely that such an event will happen in the following years. Sure, there are some danger signs, and you should definitely not consider the USA housing market to be as secure and predictable as home sellers would like you to believe. However, it is far from the situation in which it was in 2006 and 2007.
Should you buy or sell?
Again, a straightforward question, with an impossible answer. This depends on your area, the type of real estate that you are selling and your financial situation. But, let’s give you a piece of advice based entirely on the USA housing market as a whole. Don’t buy unless you plan on living in it. The odds that you will be able to flip real estate or rent it for a nice profit are minimal. The housing market is slowing down, which is why you shouldn’t expect quick earnings and large profits from real-estate investments. So, if you plan on moving to the US and buying a home to live in, go ahead. Just remember to contact JP Urban Moving Brooklyn to help you out. Buy having a stress-free move, you’ll be able to focus entirely on real-estate.
What to keep in mind
Making a wise estimate about the USA housing market is never easy. The USA as a whole is very large and the housing market is connected to other markets and influences that can drastically change it in a short span of time. Just figuring out whether to buy a home or make one can have huge implications. So, to give you a better idea on how to make your own estimations and predictions, let’s go over some important factors that can influence your particular real-estate investment.
Different housing areas
Figuring out the area is almost as important as the quality of real-estate. There is an old saying that describes how the cost and the resale value of real estate are determined and it goes: “Location, location, location”. So, when considering a real-estate investment, always keep in mind the location in which you are purchasing. Sure, the quality of the real-estate is important. But when it comes to value, other factors can easily play a much larger role.
There are a lot of things you can say about Trump, but one thing is certain. And that is that he is a polarising figure. Some of his decisions, like tax reforms, have had a beneficial impact on the real-estate market. But, as it is with all politicians, it can be hard to predict their future moves and how they will impact the market.
Beachfront property is always a risk. It sure seems nice to own a house right next to the beach. But, if you factor in global warming and the continuously rising sea levels, you might reconsider. Buying beachfront properly is becoming riskier by the day. You can go the extra mile and reduce the carbon footprint of your home, but the damage is already done. Which is why you need to consider your piece of real-estate carefully before buying it. Furthermore, real-estate that is in warmer states can also be under risk. We are not yet sure of how much global warming will impact us and how much of its influence will be able to mitigate. But, one thing remains certain and that is that things change, and every change comes with a certain risk.
Another thing to keep in mind when considering the USA housing market is the US population. It has never been easier to come to the US and it has never been more difficult to get legal permission to live here. And most of the people that come to the US choose to go to big cities. Which, in turn, makes regular residents leave. This is why many will decide to move from New York to Boston in the following years. Information like this can drastically change the way people value real-estate, which is why you need to be aware of it. There is no market without people, and if you do not consider what people want and what the current market trends are, you can hardly make a wise investment.