2019 has been quite a year for a lot of investors, especially home sellers! In some areas across the U.S., median home prices have continued to increase, even if modestly. As we bring in the new year, what can sellers expect when it comes to making a profitable sale in 2020? How will the housing market fare this time around? Let’s take a look at some of the expected real estate trends for 2020, and what they mean for sellers and investors alike.
HOME PRICES ARE STILL ON A STEADY RISE
Let’s take a look at some of the numbers. If we compare home prices from previous years, 2019 had a slower climb (3.3%) compared to 2018 (5%). This coming year might be no different. Some experts predict that home prices will rise about 2.8% in 2020.. Though modest, an increase is still an increase.
This leaves a lot of hope for home sellers. Bear in mind that, not only does this trend attract sellers, buyers are expected to be riding on the bandwagon as well. Deals are happening, even as you read this article. If you’re a seller looking for a bunch of offers to trickle in, at your price, you’ll want your home to really stand out in your area.
MORTGAGE INTEREST RATES WILL DECLINE
As home prices are expected to rise for the coming year, mortgage interest rates, for now, have decreased. Overall, 2019 has experienced a rate decrease, where some have even seen rates dip back below 4%. For next year, some say that interest rates will stay around 3.7% for a 30-year mortgage, whereas a 15-year mortgage will warrant a rate of
Low interest rates essentially means more buyers can be in the game. Lower mortgage rates allow more buyers to afford purchasing a home. An increase in the number of buyers, bodes well for sellers. Higher home prices, and lower mortgage rates is good news for Sellers.
MILLENNIALS ARE LOOKING TO BUY HOMES
Millennials are finally coming out of their shell and starting to venture into the real world. Why is this a relevant trend for 2020? For the entire year of 2019, this younger market segment took the lead as the largest group of home buyers (spanning over 37%) according to the National Association of Realtors Research Group.
Millennials are often tech-savvy and do most of their shopping online. If you want to attract a lot of buyers from this certain age demographic, you need to step up your game, especially in the online world! Let’s take a look at some strategies you can use:
Establish a STRONG online presence
If you haven’t done so, NOW is the right time! Almost 80% of millennials in 2019 found their home just by using their mobile device. Establishing an online presence is a must based on that finding alone. First impressions definitely last, and they can be an important factor in the Buyer’s decision making process. Stock up on high-quality photos of the interior and exterior of your home. A popular trend nowadays is taking video footage of the home. This gives your buyers a virtual tour of their soon-to-be dream house.
Highlight neighborhood perks
Although it’s important to give out important details such as the square footage and number of rooms, millennials are also after how close the home is to amenities, and access to public transportation. A well-kept curb appeal, while important, isn’t necessarily, the number one item Buyers are looking for. Proximity to their workplaces, schools, and shopping centres are high on the list too. Focus on these amenities that are close to your property to increase the chance of it being sold.
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