By Wendy Dessler
Real estate trends are constantly changing and if you aren't keeping track of them, you may lose sight of what's happening in the global marketplace. At the same time, certain aspects of this market will always remain the same. As an investor or potential homebuyer, it's up to you to stay on top of everything happening in the world of real estate so you don't make mistakes.
As you can imagine, it often takes time for trends to really dig in and take effect in such a large and unpredictable market. There isn't much that changes quickly in the real estate game, so this is a bonus for you and other investors attempting to stay on top of the latest developments.
But things are changing in the U.S. and other parts of the globe. To help you better understand the current direction of the real estate market on a global scale, here are some important trends and what they point to on the horizon:
Trend No. 1: Recession Fears May Spook the U.S. Real Estate Market
For better or worse, the U.S. tends to set the tone for markets all around the globe. Now that many people in the U.S. fear an impending recession, it's having a negative impact on the overall real estate market.
On the other hand, investors from other countries have an opportunity to purchase property cheaply. The impending recession could be a major boon just like it was when foreign investors gobbled up U.S. properties during the 2008 housing market.
When the recession finally begins, the housing market is going to soften. This could happen as early as the end of 2019 and get even worse as we head into 2020. So whether you're a foreign investor looking to take advantage of the soft real estate market, or a local investor with great credit and capital to back it up, you'll likely have a chance to buy fantastic residential and commercial property at a nice discount in the near future.
Trend No. 2: Top 10 U.S. Housing Markets
You may be surprised by the following list of exciting housing markets in the U.S. to invest in next year. The latest trends show that mid-size and large metro areas are predicted to be the hot real estate markets heading into 2020.
For the most part, the cities listed below are experiencing market booms for a number of different reasons. Much of the growth is driven by the tech industry, but the flourishing populations are also a big part of the reason why the housing market is becoming so valuable in these areas.
The top 10 U.S. housing markets include: Atlanta, Ga.; Austin, Texas; Boston, Mass.; Charlotte, N.C.; Dallas/Fort Worth, Texas; Los Angeles, Calif.; Orlando, Fla.; Nashville, Tenn.; Raleigh/Durham, N.C. and Seattle, Wash.
These cities aren't the only exciting markets to consider investing in next year. Other great cities to invest in include Charleston, S.C.; Indianapolis, Ind.; and Portland, Ore.; as well as areas like Northern Virginia and Orange County in California. Globally, the hottest countries to buy property in right now include Brazil, Belize, Montenegro, Panama, Portugal and Puerto Rico.
Trend No. 3: The Global Housing Market Could Unravel
Housing market leanings around the globe show that housing prices are extremely high currently; however, these prices aren't going to remain this high forever, and this is especially true in the U.S., where prices are already slipping in some places.
Remember, ordinary people have to be able to afford these homes in order for prices to stay high. Right now, affordability is at an all-time low and it's on its way to reaching its breaking point in many markets. Thus, housing prices will eventually come down because they're currently untenable at these levels.
So, if you plan to invest in real estate in the near future, you should wait a little while longer for prices to drop and then eventually level off. You'll be able to buy property for a much cheaper price if you remain patient.
There are many forces driving global property trends as we head into the next decade. The beginning of 2020 is going to be very interesting for buyers because prices around the globe are about to become much cheaper due to the impending recession.
Patient investors likely won't have to wait much longer for incredible real estate deals to present themselves. So if you're dying to begin investing, it's time to start looking for bargains that'll soon be appearing on the global horizon.
Wendy Dessler is a super-connector who helps businesses like I Sold My House find their audience online through outreach, partnerships and networking. She frequently writes about the latest advancements in digital marketing and focuses her efforts on developing customized blogger outreach plans depending on the industry and competition.
This article is intended for informational purposes only and should not be construed as professional advice. The opinions expressed in this article are those of the author and do not necessarily reflect the position of RISMedia.