It was quite a year for the U.S. housing market where median home prices went all the way up to $316,000—a record high In 2019! Will 2020 bring more of the same results as what the previous year had shown? How will the housing market shake out in the current economic climate?
Whether you’re home selling, buying or staying put, here are the 2020 real estate trends you need to know!
Home prices grew slower in 2019 (3.3%) than in 2018 (5%). And the year 2020 seems like it will be no different. In fact, real estate gurus predict that home prices will only rise by 2.8% in 2020. A nice profit may be on the horizon for the sellers. However, 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 prepare your home for potential home buyers and work with a real estate agent to help you list your home at the right price.
For the Buyers, keep saving! If you stay patient and motivated, you can save for a five-figure down payment by this time next year.
Sacrifice some wants. If you can’t afford to buy the house you want, be willing to give up some “nice-to-haves” for your “must-haves.” Find the least expensive home in the best neighborhood you can afford and you can upgrade as your income and savings increase over time.
Mortgage interest rates have been going down in 2019—steadily dropping below 4% for common types of loans In 2020, economist geeks think interest rates will stay around 3.7% for a 30-year mortgage and 3.2% for a 15-year mortgage (the only type of mortgage we recommend.
But this is never a guarantee because things like tariffs and trade wars might gradually shift the economy, which could result in the Federal Reserve slowly increasing interest rates to balance things out.
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. But 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.
Once again, millennials took the lead as the largest group (37%) of home buyers last year. They can’t wait to post a pic of their new home on Instagram! So upgrade your online listing. Virtually all millennials (98%) use the internet for their home search—and more than 80% of them found their home on a mobile device last year. So, you need to make the best possible impression on the internet. Make sure you invest in high quality listing photos, and, for extra measure, consider taking video footage to give them a digital tour of your home.
Know popular features. Here are some of the top home features millennials want: laundry room (86%), hardwood front exterior (81%), patio (81%), garage storage (80%), and a walk-in pantry (79%) If you’re thinking of making some upgrades to your home, choosing one of those might have millennials showering you with offers when you’re ready to sell.
Hire an experienced pro. Last year, nearly 90% of millennial home buyers used real estate agents to purchase their homes.10 Think they’re onto something? You bet! Save yourself the stress of trying to buy on your own. Get the help of a real estate pro so the home-buying process is smooth for everyone involved.