As recent wage talks have caused some waves in terms of the cost of living for the average American worker, it is a good idea to look into the future and try to make some predictions as to what the real estate market will look like in 2020.
Beyond examining the best places for young adults to live, we’ll also explore what the market might look like for buyers, sellers, and real estate in general.
The West Will Be The Best
According to US News & World Report, the top three cities to live are Austin, Denver, and Colorado Springs.
Austin has made a strong showing by making number one on the list for the past three years, with a boom from the tech industry creating a strong job market paired with a buzzing art scene, many outdoor activities, and low home prices.
Denver also has a growing young population, but the median home price is growing as well, causing some slowing when compared to Austin.
Finally, Colorado Springs has remained a consistent option for young residents thanks to a strong job market, affordable home prices, and high education marks.
2020 Will Be The Time to Buy
If you’ve been doing research on the housing market over the past two years, you’ve probably noticed that market has been leaning toward the seller, but has nearly been deadlocked in terms of supply and demand.
However, The Home Buying Institute, based on a quarterly survey of 100 real estate economists and experts nationwide, is looking for 2020 to become the year of the homebuyer. The switch won’t be immediate, and due to a potential supply shortage, it may still hold as a seller’s market at the beginning of the year, but the turning point should happen at some point during the year.
If You’re Going to Sell, Do It Soon
If you’ve been putting off renovations and dragging your feet during the selling process, now is the time to buckle down and get your property sold. While supply around the US is relatively low, the tide will seemingly turn soon, and this is something you want to be ahead of.
Selling your home while the supply is limited will give you a better chance at getting close to your asking price since there will more than likely be more than one buyer bidding for your home. Once the supply increases, buyers will have the ability to look elsewhere if they sense the price is being over-inflated.
Pay Attention to Localized Research
The housing market in the United States, much like the customs and opportunities in the country itself, varies greatly from one city to the next. While it is important to investigate national trends, it is also extremely important to do your research and understand the localized market for cities and states you’re interested in. As young people flock to the next big booming city, paying attention to these trends could help you ride the wave and get a great deal on a home in a city that is just starting to be built up.
This is opposed to moving to an overpriced area where home prices have begun to outpace the local economy. For instance, if a city like New York or Los Angeles sees a decline in home values while cities like Dallas or Austin see a large growth in home value, that is something that is important to keep in mind when making your long-term investment.
Will the Bubble Burst?
Some economists and analysts have worried about the inability for seniors to sell-off their homes in smaller, less-desired cities. As senior citizens get older and retire, they will need to sell their homes, but the problem will be that people will not want to buy these homes in cities that aren’t seeing economic growth.
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So, sites like QZ.com predict that baby boomers will be willing to sell their homes, but not be able to find buyers for those homes, simply based on the younger buyers’ preferences of location and home type.
This will cause some seniors to have homes they can’t sell or care for, causing their homes to lose even more value until they give up on the idea of selling and walk away from their home altogether. Whether this will come to fruition is yet to be seen, but it is certainly on the radar for some economists.
While it’s unclear what will happen in 2020, it can be said with relative confidence that if you’re considering selling your property in a budding city that’s seeing a solid economic and population growth, now is the time to close the deal. If you’re looking to buy, you may benefit from waiting another year or so if you can hold off.
If you’re unsure what to do in your situation, it is highly recommended that you seek the advice of a realtor you can trust so you can make a sound decision in 2020 that you won’t regret years down the line.
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