For investors, owners, and renters alike, it’s crucial to have a grasp of the real estate market. The residential real estate market is always changing and in flux but having a good idea of where it’s heading can help steer your financial decisions. Winston Deloney is an expert real estate investor and entrepreneur, who has a good idea of where residential real estate is heading. We sat down to interview Winston Deloney, to talk about 2020 real estate trends you should know.
Winston, why should people be interested in residential real estate trends?
I think that understanding real estate trends is beneficial for everyone. If you’re a renter or a homeowner, knowing where the residential real estate market is heading can help you save money, big time. Knowing what’s going on will help you decide whether to move or stay put, buy or sell, or even maybe enter investing spaces. Making an uneducated move can be really damaging to your personal finances.
And what about from an investing standpoint?
It’s the same logic. An educated investor will make much better financial choices than an uneducated investor. Of course, the market is unpredictable, and no one knows for certain what will happen. But that being said, it’s very possible to have an educated guess about what’s going to happen, by analyzing the past and current state of affairs.
What are some of the housing market trends right now?
Housing prices have been on the rise for more than 30 consecutive quarters, and that trend doesn’t seem to be slowing down. Even more recently, we’ve seen just slight increases, but they’re still increasing. In the earlier part of 2020, sellers definitely were at an advantage. It’s still a good market for sellers on paper, but the coronavirus pandemic has led to things being very unpredictable.
How are mortgage rates looking?
Thanks for bringing me to my next point. We’ve been seeing record low mortgage rates, in the wake of the coronavirus pandemic. The pandemic has obviously had a lot of economic impacts, and mortgage rates is one of them. But at the same time, home sales themselves have actually declined, because of the pandemic. Less people were able to get out of the house to actually see homes on the market, for example, and because of the other economic impacts, less people have been in a position to actually make purchases in general. Now the question is: will mortgage rates stay low during the Coronavirus crisis?
Where do you think the residential real estate market is heading?
I think the mortgage rates will stay low for a while, but competition for properties will increase, as people recover economically, and things stabilize. While the pandemic is still creating ripple effects economically, things are starting to settle finally. But of course, before you make any financial or real estate choices, do your homework, and make sure you consult professionals.