There are so many ways in which 2020 is not turning out the way most Americans expected. In terms of real estate, we were hurtling toward a busy spring season.
2019 was quite a year for the U.S. housing market. Median home prices went all the way up to $316,000—a record high!
Will 2020 bring more of the same results? How will the housing market shake out in the current economic climate? Whether you’re selling, buying or staying put, here are the 2020 real estate trends you need to know!
Real Estate Trend #1: Home Prices Are Still Rising Slowly.
A nice profit may be on the horizon! But also keep in mind that a lot of buyers are being priced out of the market at the moment, which could lead to fewer offers for your home. So, what should you do about this? Be aware of your competition. With less offers to go around, you want your home to really stand out from similar ones in your area. Prepare your home for potential home buyers and work with a real estate agent to help you list your home at the right price.
Commit to staying within that budget amount. Don’t rush into a home purchase that doesn’t make financial sense for you no matter how much pressure you feel watching competitors pluck good homes off the market. You could screw up your finances!
Real Estate Trend #2: Mortgage Interest Rates Are on the Decline (for Now).
If interest rates stay low, buyers will be more motivated to buy your home sooner than later. But if interest rates do start to increase later in the year, just plan for your house to be on the market a little longer. A mortgage is a big commitment, and adding higher interest rates to the mix will make many buyers pause.
An experienced real estate agent can help you set expectations for how much you can make, and how long you’ll have to wait for the right offer.
Even though interest rates are relatively low, if you’re not buying with cash, be smart and go for a conventional 15-year fixed-rate mortgage. That way, you know exactly what your payment will be over the life of the loan.
Real Estate Trend #3: The Majority of Home Buyers Are Still Millennials.
That’s right, our final trend is about who is buying homes. And once again, millennials took the lead as the largest group (37%) of home buyers last year.
What is a millennial exactly? Well, the nerdy answer is anyone born between 1980 and 1998. The easiest way to spot a millennial home buyer? They can’t wait to post a pic of their new home on Instagram!
Read the full article here.
