With 2019 coming to an end, it’s time to look to the new year and the trends that come along with it. The real estate market has had plenty of ups and downs over the past year, such as low rates and limited supply, and many experts are claiming that 2020 will be somewhat the same, but will definitely see a few differences. Read on for a few of the real estate trends you can look out for in 2020.
Due to such a high housing demand and a not so great inventory, home prices will likely continue to rise in 2020. Recent reports from property data firms such as CoreLogic predict that prices will increase by 5.6% before the end of 2020, which is even higher than the 3.5% increase we saw in 2019. Ralph DeFranco, a chief economist for Arch MI, believes that entry-level home prices will begin to overtake incomes by the end of 2020 and blames the fact that not as many lower-profit homes are being built due to home-builders having more focus on higher-profit homes.
Suburbs Will Be Popular
Since home prices will likely be rising, potential buyers with less money will want to find more affordable areas to settle down. The best places to do that will be suburban towns outside of major cities. Many real estate professionals call this “Hipsturbia”, specifically cities that are diverse, walkable, and in favor of retail, recreation, density, and transit access. Examples include Yonkers in New York and Hoboken in New Jersey. This “live-play-work” formula has led to a revival in major urban towns around the country.
As the baby boomer generation begins to enter their retirement years, the need for senior housing will rise with it. Within the next twenty years, the number of Americans over the age of 80 is expected to double from 6 million to 12 million. This means that a wave of seniors will be looking for housing, many of them wanting an active lifestyle living. While it’s still a while before those numbers occur, it might be wise to start early.