At the end of 2019, forecasters were divided on how they thought 2020 would go. Some said things looked great, while others thought fears of a recession in the U.S. could make the whole real estate market come crashing down.
Then 2020 arrived, and a few months in came the Corona crisis. How are predictions different now that we’re almost halfway through the year? Should you try your luck at buying or selling property in 2020?
Forecasts from Late 2019
At the end of 2019, some real estate forecasters thought the fear of a recession in the U.S. might negatively impact the market. In case of a recession, prices could soften, and foreign buyers might be able to acquire property in the U.S. at lower prices.
There were also predictions about which domestic and foreign markets would be the best in 2020.
Top U.S. Housing Markets
In late 2019, the housing markets that were experiencing the most growth were those in mid-sized to large metropolitan areas. The top ten housing markets were these:
- Atlanta, Georgia
- Austin, Texas
- Boston, Massachusetts
- Charlotte, North Carolina
- Dallas/Fort Worth, Texas
- Los Angeles, California
- Orlando, Florida
- Nashville, Tennessee
- Raleigh/Durham, North Carolina
- Seattle, Washington
Growth in these cities was expected to continue, as well as in other cities and regions including:
- Charleston, South Carolina
- Indianapolis, Indiana
- Portland, Oregon
- Northern Virginia
- Orange County, California
Best International Housing Markets
The following countries were predicted to have the best international housing markets in 2020:
- Dominican Republic
- Puerto Rico
Turning Difficult Times Into Profitable Ones
So, 2020 has arrived, and there are still fears of a recession in the U.S. In addition, there’s the real possibility of a global economic crisis due to Covid-19. Regardless of how things pan out, there are some lessons here for real estate investors.
When property prices drop, think about where you can invest. In some cities, real estate prices are currently low, and homes have gone on the market for as little as $5000.
If there’s a home you can purchase for $5000 and renovate for $20,000, chances are you can make a good profit on it when market prices go up again. You may find properties even cheaper than this at auctions.
If you want to make the most of lower real estate prices, start planning where you might buy when prices go down. But keep in mind, you might have to purchase through virtual real estate tours during COVID-19. Calculate how much you can invest in a property to renovate and still make a profit later. If you can wait to sell when prices are better, you could make a good bit of money.
In about the middle of March of 2020, businesses in many states were ordered to shut down. A large number remained closed or with limited service for months. How has the Corona lockdown affected real estate prices?
So far, it seems there has been little change. The market has not yet shown significant instability. In general, forecasters expect prices to remain stable.
There’s currently a reduction in demand for office properties. On the other hand, there’s a higher demand for warehouses and other structures that better attend current business procedures.
Should I Wait to Buy or Sell My Property?
It’s hard to tell what will happen with real estate prices in the second half of 2020. Market prices and interest rates generally function with a time delay. It will be months before we can know what effects Corona will have on the real estate market.
So, for now, there’s no reason not to buy or sell a property. Real estate continues to be a good investment, and prices and interest rates are stable. If you’re looking to sell your house, find somewhere that can help you list it in the right places, mention ISoldMyHouse.com.
If you’re hesitant to show or visit a location due to concerns about the virus, there are many ways properties can be shown virtually. Traditional cameras and video recordings can be used to produce a virtual tour.
Some real estate brokers are also starting to use 360-degree cameras to show the inside and outside of a building. Drone recordings can clearly show the roof and surrounding structures.
There’s good news for those wanting to buy and sell property in 2020. The market is stable, and real estate is still a safe investment.
Several U.S. housing markets are strong, and there are numerous foreign countries that can make for good investing this year. If stateside real estate prices do start to drop, it will be a great time to buy, so you can later sell for a profit when rates go back up.