The 2020 Real Estate Investing Forecast

At the end of each year, we explore market reports and other research to determine the forecast for the new year. This process is important in helping develop a real estate investment strategy. Understanding market trends aids in deciding whether to adjust the types or volume of investment deals focused on during the year.

At Real Estate Investing Women, REIW, we work with likeminded female real estate investors to provide education and community connection. If you want to start or grow your real estate investment business in 2020, schedule a call with REIW!

One of the things that keeps real estate investing interesting is the dynamic nature of the business. The real estate investing industry changes and evolves constantly. These changes not only tie to the economy, but social perceptions and behaviors also influence real estate trends.

What is Happening in the Housing Market in 2020?

The forecast for 2020 predicts the markets will stabilize and adjust versus the rapid growth of the last few years.

  • Home prices will stabilize throughout the U.S. According to realtor.com, home prices in some metropolitan areas may fall. These include: Chicago, Dallas, Las Vegas, Miami, St. Louis, Detroit and San Francisco.
  • Inventory of listed homes will remain low. Inventory rates may hit the lowest levels in recorded history. Demand to buy will continue to exceed the available supply of homes for sale.
  • Mid-size price ranges, which change based on geographic location, will be the preferred purchase for home buyers and investors.
  • More Millennials are finally entering the home buying market. However, Baby Boomers are holding on to their primary residence instead of downsizing. Many opt to buy a second home as an investment based on the favorable economic conditions.
  • Demand for rental properties will remain strong. Due to stricter mortgage requirements and the rapid home price increases over the last few years, many people cannot afford to purchase a home. The recent growth in home prices exceeded income growth.
  • With new technology and innovative platforms entering the real estate industry, the concept of virtual real estate investing will become more mainstream.

How Do the 2020 Predictions Impact Real Estate Investors?

The good news is there are a lot of opportunities to find creative financing options for real estate investments. In fact, in 2020 many private investors have cash, meaning liquid funds, available for investors.

These private investors include individuals with healthy saving accounts, IRAs and retirement accounts that prefer to invest in real estate instead of buying stocks. Look for appealing interest rates through institutional private lender organizations and REITs.

For real estate investors, finding properties for investments should be more challenging than finding funding in the new year.

What are the Best Real Estate Investing Strategies for 2020?

Fix and flip is the best and most lucrative real estate investment strategy for 2020. Many people don’t want the hassle of fixing up a property and prefer to buy a move-in-ready home. With demand exceeding supply, especially in the mid-range market, fix and flip creates a wonderful opportunity to meet this need.

Where a few years ago home buyers did not mind buying a property at a bargain to fix up, today’s busy homebuyers don’t want to invest in their “sweat equity”. This means, that with the right method for fix and flip, you can see solid profits this year.

Wholesale real estate investments are also a great strategy for 2020. Rehabbers desire properties to flip but often don’t want to spend the time searching for those properties. Work as a wholesale investor to locate undervalued properties that need repairs to provide for the rehabbers on your buyers list.

The rental properties in the affordable rent range will continue to have a high demand. These homes will make a solid investment in 2020 and beyond.

Finding the right strategy depends on your experience and finances as an investor. Wholesaling is a great option for new real estate investors to learn the industry. Wholesale deals take little financial backing and can help build your investment portfolio to gain traction for larger deals.

With plenty of private funding available, new and seasoned investors can find funding for both fix and flip and buy and hold. If you are a new investor, you will need some basic experience as an investor to borrow and establish credibility and trust.

Continued Real Estate Market Strength in 2020

The real estate market in 2020 is still going strong! This is great news for real estate investors. If you want to grow your knowledge and connect with other female real estate investors in the new year, contact REIW. We offer women investors both online and live resources to help you succeed in real estate investing.

Contact us today to schedule a call to discover how we can help you meet your goals in 2020!