Based on this forecast of housing trends for 2020 there will be a great opportunity for buyers and sellers. Nonetheless, there are still challenges that have to be taken into account before making any decision. Some of them include difficulty finding the right home and competition with other buyers for affordable price points. Here are some of the factors that will affect the real estate market in 2020:
Prices for homes are still on the rise
Compared to 2019 with a 3.3% in growth of prices, it is predicted that home prices will only rise by 2.8% in 2020. This indicates that buyers need to be aware of their budgets and what they are willing to pay. Whereas for sellers it indicates a nice profit.
Millennials buying new homes
People in their 30s tend to buy their first home and based on the forecast mentioned above. “The largest cohort of millennials will turn 30 in 2020”. The generation will account for more than 50% of mortgages taken out in the US.
This means it is important for sellers to upgrade their online listings and make the best possible impression on the internet. They can improve their chances by sharing high quality pictures, video footage and a lot of information on the home. Believe it or not, 98% of millennials use the internet when home searching -and more than 80% have found their homes on their mobile devices last year.
There is a lot of competition expected. This means that buyers need to know exactly what they want. Making a list and listing every important thing and little details is essential.
Achieving price points is another crucial factor to buyers. Many times people prefer to go to different cities with achievable price points that to cities with a great location because of prices.
If you do not feel prepared to buy, don’t rush! Here are some options you can consider before buying:
- Expand your search of homes. Reconsider the location you are looking at. Remember there are less popular neighborhoods that have beautiful houses. Also, working closely with a real estate agent that knows the areas, if you haven’t done so, is a great way to find a home that fits and stays within your budget.
- Save in a smart way. If you are willing to wait a little bit longer you can think of saving for a down payment on a house.
- Wants and haves. Sometimes you have to be willing to sacrifice the house and features that you want for the ones you really need and must have. Finding a house lower in price in a great neighborhood is a way to go. You can upgrade it overtime once you are settled.
Whether you are buying or selling, one of the best ways to take advantage of the current trends is by partnering with a professional real estate agent. This is one of the most reliable and professional ways to find the home that best suits you. If you want individuals that care about your financial goals and have earned a trustworthy reputation in the market, contact us!