Investing in the stock market and the real estate sector have traditionally been a great way to make money over the years. With the world's current economy and everything that has been happening, a lot of investors and other people are concerned about how these markets have been performing in 2020. Contrary to many popular beliefs, both markets have done much better in the middle of a pandemic than people might think. You might already know this if you're getting stock market alerts or have been looking into buying a new home. If you haven't already been looking into the stock market and real estate sector, read on to find out how they have performed through 2020.
Stock market performance
The stock market has had many sharp ups and downs throughout 2020. In March and April, the market took a hard dive and continued to stay down for months as the beginning of the pandemic unfolded and the world panicked. It stayed down for months and this caused many people to buy stocks as well as sell stocks out of fear. The younger generation of investors was buying more stocks than ever because they were able to get them at a discount and the older generation of investors were selling because they were closer to retirement and didn't want to hang on to stocks that could stay low for a long period of time.
After this plummet, the stock market started to steadily rise again in the summer of 2020 and into the fall where it hit its all-time high in late October/early November. This is where the stock market has sat at and it's unpredictable where the market might rise in the future. It could potentially go down for the last month of 2020, or it could soar to new heights that investors have never seen before. It's hard to tell, but one thing is for certain, all eyes have been on the stock market for the entirety of 2020.
Real estate sector performance
The real estate sector has taken a different turn from the stock market in 2020. The sector was steady in very early 2020 and when March came, it boomed. Demand for homes boomed and prices for homes skyrocketed as well. This boom in the price of real estate has remained consistent throughout the year and has actually gone up since the original boom. More people want to live in and own actual houses because they're unsure what the future of the real estate sector might hold. They're buying up houses in all kinds of neighborhoods and home values are skyrocketing. Analysts expect that this boom in real estate could possibly stay steady throughout all of 2021 because of how high demand was in 2020.
So many people are unsure about their futures and don't want to be caught without owning a home. Additionally, since the pandemic hit and more people started working from home, they have realized that working from home in an apartment is difficult to do compared to an actual house. Houses are bigger and have more space to move freely throughout. This way, your workspace doesn't mesh too much with your home space and you're able to have more of a balance between working and being at home. Many people will remain working from home into 2021 and the boom in the real estate sector will remain steady as long as this is the case. If you're a real estate investor, property manager, or real estate agent, you can expect to see a lot more action happening in the future.
The prediction for 2021
The stock market has been at its all-time high and has been really low in 2020. It typically isn't this volatile and more volatility can be expected in 2021 because of everything that has happened. The real estate market boomed in 2020 and will remain booming until the pandemic ends and maybe even after that. More people are working from their homes so more people are buying homes. The New York Times expects this trend could continue for all of 2021 depending on the state of the economy and the world. More people will continue buying homes and the prices of these homes will continue rising.