What to Expect from the Real Estate Market for 2020

Predicting the real estate market should be an Olympic event; everyone loves to predict the ups and downs of the real estate market. As we enter the last few weeks of the first quarter of 2020, buyer and sellers are wondering what to expect for the rest of the year.

Housing Market Trends 2020

Most analysts agree that we can continue to expect the same trends and momentum we saw in 2019. The foundation for growth is strong with low unemployment numbers, higher household incomes and high consumer confidence. Additionally, we are starting to see more Millennials enter the housing market than ever before.

Housing Stocks

More and more investors are realizing the value of adding real estate stocks to their portfolios. Shunting the value of owning rental properties, many of these investors, as well as new participants, are turning to REITs for investment diversification. REITs that are based upon hard assets provide stability as well as liquidity, making them very popular.

Also, the types of homes held in these products is changing. In addition to commercial and large scale buildings, many funds are adding small homes to their portfolios - taking advantage of the growing down-sizing trend as Baby Boomers move to their next homes.

Market Picture

Overall, buyers should find a nice selection of homes from which to choose. Interest rates are expected to remain fairly stable, and while nationally, prices may flatten from increased inventory, the Tampa Bay area is expected to see slight decreases in inventory, thereby increasing prices. Local buyers will need to move faster and sellers can expect the same competitive market for their homes we saw in 2019.