Planning Ahead With the 2019 Housing Market Predictions
Real estate investment is an intelligence game. That doesn’t mean you have to be a genius to succeed, it just means you need to have the information necessary to make the right tactical decisions for your portfolio and your goals. Without that information, you’re just making guesses when you buy and sell properties, and that’s no way to ensure success. That’s why you need to understand the housing market predictions at a local and national level, and you need to know the differences between them so you don’t accidentally take advice that was really aimed at people in a different location, with different economic factors influencing the housing there.
The 2019 national trends are generally toward increased property values in single-family homes, driven in part by demand as the available market shrinks from short-term rental investments. This is especially notable in metropolitan areas that see a lot of travel for business and tourism. Investors looking for a good return on income property should look for localities where the cost of those single-family homes has spiked in recent years, causing a demand backlash. These areas tend to see rising rents as demand increases and new construction works to catch up with it, so they are prime for real estate investment.
If you’re buying to resell, the key is to find the places where demand has not reached a peak yet, but where it’s likely to increase soon. That means finding a place that’s enjoyed slower than average growth for a little while, but that will soon see an increase in population pressures that lead to a demand in housing. Look for cities that have recently been awarded major contracts for corporate headquarters, new manufacturing facilities, university satellite campus construction, and other events that are sure to bring new jobs, because new jobs will bring new workers. If it’s something like a university, there’s a good chance you can get into the student rental market as well.
If you’re currently only investing for rental income or reselling and you’re not combining tactics, this is the year to change that. The housing market is reaching a bottleneck in many locations due to rising costs pricing a number of would-be home owners out of the market. Expanding your portfolio quickly and reaching a stable balance between growth and income you can count on means having the versatility to use whatever strategy is best for a given property, and to diversify your investment formats to better meet the market wherever it moves.