Happy New Year, folks! What a great time to be alive! It’s the second decade of the new millennia and things are kicking off to a great start. We’re talking housing market of course. There’s every reason to celebrate this year’s forecasts. It seems there’s advantages for both buyers and sellers. This is what we call a ‘healthy market’ in the biz. The indicators we’re seeing for this year’s market usually spell bad news for those interest in the real estate investing arena.
Here’s where your probably wondering how this healthy market is different and can create opportunities for real estate investing, even for first-timers.
Usually, they don’t.
This market is promises to be a bit different though. There are factors here that may make investing in real estate a viable option for many people.
National Housing Forecast 2020 (Realtor.com forecast):
Housing markets search for new balance
– Home price growth will flatten, with a forecasted increase of 0.8 percent
– Inventory will remain constrained, especially at the entry-level price segment
– Mortgage rates are likely to bump up to 3.88 percent by the end of the year
– Tight inventory and rising mortgage rates will lead to dropping sales
– Buyers will continue to move to affordability, benefiting mid-sized markets
Realtor.com Forecast for Key Housing Indicators
|Housing Indicator||Realtor.com 2020 Forecast|
|Mortgage Rates||Average 3.85% throughout the year, 3.88% by end of year|
|Existing Home Median Sales Price Appreciation||Up 0.8%|
|Existing Home Sales||Down 1.8%|
|Single-Family Home Housing Starts||Up 6%|
There is potential for a variety of impacts on the housing market starting this year.
Millions of Americans will enter their 60’s and 70’s. Senior housing demands often mean downsizing and cost saving. This means the market could see a higher demand for smaller, more affordable inventory. These smaller one-level homes are limited across the board in the U.S., so competition could increase.
Plano is no different. The closest we’ve come to a tiny home village has been the Villages at Legacy West!
We’re seeing construction of new homes specifically for Seniors on the rise locally. Plano has consistently been named as one of the best places in the country to retire. This trend is one that will continue to rise.
It’s also time to say hello to Generation Z. According to a TransUnion report, the number of Gen Z shoppers who took out a mortgage more than doubled in one year. Year-over-year growth was 112 percent in comparison to 12 percent growth from Millennials.
It’s important to consider what the profile of a Gen Z home buyer looks like. Similar to millennials, they are riddled with student debt. That means smaller spaces and affordability are key. Combined with the millennial market and the Silver Tsunami, it’s easy to see why experts are predicting more of a demand for affordable inventory that is both senior- and starter home-friendly.
Life is full of opportunities if you know where to look. Usually they’re buried in the negative space. It’s kind of like the arrow buried in the FedEx logo. The good thing about them though is one you see them you can spot them easier.
Where’s the opportunity for some profitable real estate investing? You have to know the particularities of the niches that will affect the market and what will be left. That low hanging fruit is ripe for investments.
We can’t say to go and buy every kind of one particular style home. It’s not that black and white. We can we are watching and being ahead of the curve is our game.
Getting into the game now and into position to buy when opportunity arises can mean a possible payoff for you. How do you do that?
The first step is to find your buying power. How much you can afford and how fast you can move will mean the difference between a big win or a loss. Strategy means everything.
The second step is to be always watching the marketplace of homes in your area to see what’s available. Once you have your strategy you’ll know your search perimeters. Until then you can browse our site to see what’s available and become familiar with your area’s marketplace of homes.
Real estate has always and will always be a sound investment. The trick is knowing when the time is right.
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