Perhaps the biggest controversy to hit the housing market for some time has been the number of predictions about whether the US housing market will start sliding or whether the downward trend will continue. Whatever happens in the coming months, and you can expect there to be at least a few more surprises, we are getting close to 2020 when housing data will be back on the charts.
As you can see from my past articles, the housing market has changed significantly since I last wrote one. Most of the people who have predicted a crash are either out of touch or not properly paying attention to how the real estate industry is currently doing. What I am about to share with you is a little bit of what the housing market will look like in the future.
You are probably saying to yourself; “What does this have to do with the housing market?” Well, what I am about to tell you has nothing to do with the housing market, it is all to do with financial predictions.
Now if you are the type of person who expects markets to be right, you are going to be holding onto the sheets that the housing data is going to be bad next year. But if you are more optimistic, you are going to be ready to buy housing in August. Which group will you fall into?
If you believe that housing data will be really bad, then you should buy now. On the other hand, if you believe that housing data will be okay, you should hold off and wait for the housing numbers to pick up a little bit.
It is as simple as that. There is no middle ground, so anyhow you try to look at this situation, you will see that we are headed towards the next upswing.
What makes it even more interesting is that the housing market is following a good pattern. Every cycle brings about its own issues, but it also brings about good opportunities for investors to make money.
Housing has always been a good investment. And the factors that have helped it over the years have always been the same ones that will be there for the next 20 years.
For example, financial markets tend to decline when there is a recession. That is why markets are currently down about 8%.
Since housing has not experienced any kind of recession, the most recent one, it will continue to enjoy its low inflation rate. As such, we will see a further appreciation in the value of homes.
So when you see the housing market dropping, don’t get too excited. The market should fall back to where it was before the recent downturn.