2020: 5 considerations that can affect the real estate sector

Why does the price of real estate change, by various amounts, over different periods of time, etc.? Those who, seeing this, from a historical perspective, realize that the only predictable thing is that it is a challenge to know in advance what will happen in the near and more distant future. In recent years, the cost of homes, in many areas, has increased, for a variety of reasons. Some of them include: historically low interest rates (which have brought very low mortgage rates); seven consecutive years of quality economics; consumer confidence; a feeling of job security; etc. At the same time, some factors present challenges, such as: the current high level of house prices; politics; Tax laws; and forecast future economic conditions, etc. With that in mind, this article will briefly attempt to consider, examine, review and discuss, 5 considerations that may affect the real estate market in 2020.

1. General economic conditions: Will the economy continue strong or will we witness certain warning signs of a possible recession or slowdown? What will be the public perception, etc.? Will the job market be strong and will it result, in the future, in greater participation, in the so-called American Dream, of owning a home of your own? What will the cost of rents mean for people looking to buy homes? Will all segments of the housing market strengthen, weaken, or remain more or less the same? Will the upper market be stronger or weaker than the middle or lower market?

2. Interest rates: We have witnessed very low mortgage rates for several years, so will this trend continue or will these rates start to rise? Since low mortgage rates mean that you can buy more home for your dollars, if your dollars go up, what effect will this have on home prices?

3. Impacts of tax laws: Tax reform legislation, passed in 2017, imposed a cap on state and local taxes, or SALT, which are deductible, for income tax purposes. In states, where there may be an impact, high-end real estate may be adversely affected.

Four. Consumer confidence: The higher the consumer confidence, the stronger the housing market! When people believe, things will go well, they are more willing to commit to meaningful investments, and for most Americans, the value of their home represents their largest financial investment.

5. Housing prices: How high, can house prices rise, before there is any short-term correction?

Be a smart consumer and know, as much as possible, about the real estate market and its possibilities! Are you ready for this task?

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