2020 Real Estate Trend Predictions
It was a crazy year for the housing market; the prices of homes went up 3.3% more than it did last year. The question is, will the prices continue to rise or will they plateau? Whether you’re buying or selling a home, find out what real estate trends are coming your way for 2020!
Home Prices on the Rise
Sadly, home prices are going to continue to rise, at least they chose to rise at a slower rate. They predict that it will only rise by 2.8% in 2020. These high prices may benefit you if you’re selling your home, but if you’re planning on buying a home you may be outpriced.
When selling your home, make sure your home stands out from the rest. Maybe make a couple remodels and always keep your house in tip-top shape!
You want to wait for the right offer; buyers may try to get you to lower your asking price. If you aren’t in a rush with selling your home, wait for the offer that fits best with your financial situation.
These higher home prices can really break a buyer’s bank. Make sure you take the time to calculate what you can afford before making any decisions. Figure out how big or small of a monthly payment you can handle and go from there. If you aren’t quite ready to put at least 10% down on a 15 year fixed rate conventional loan, then you should hold off on buying a home at the moment.
Buying a home is definitely stressful, but if you work hard and save your money you’ll be one step closer in no time!
Mortgage Interests Rates are Dropping
The mortgage rates in 2019 were steadily dropping below 4%. Interest rates for 2020 are expected to stay around 3.2% for a 15-year mortgage. However, there is never a guarantee because of tariffs and trade wars.
If rates are low, buyers will have a frenzy. If they start to increase it might turn buyers away from homes, leaving sellers stuck. Although rates are low, you still want to shoot for a 15 year fixed conventional loan. With this loan, you will always know exactly how much your payments are.
Millennials are Taking Over the Market
Millennials are taking over the housing market and are the largest group of home buyers for 2019. They make up 37% of home buyers and since millennials are buying the majority of homes, you need to make sure you appeal to their wants and needs.
Knowing your buyer will definitely help you when selling your home. Millennials are all tech-savvy and know how to do their research. They are always on their phones, so it’s never hard for them to find information anywhere they go.
Always make sure to upgrade your listing. 98% of millennials use the internet to search for homes and around 80% found their homes through their phones last year. Highlight your home’s features; upgrades, appliances, pools and school zones. Millennials would rather buy a home based on a school zone rather than size or price.
Although millennials use their phones for basically everything, including home buying, 90% of them still use real estate agents. Buying a home is difficult and you can always use the extra help no matter how much information your phone has for you.
Because of the rising prices, buyers may be less picky. They may settle for neighborhoods that they never thought they would be in. Buyers aren’t particularly looking for neighborhoods as much as they are looking for affordability.
Grab the Wheel
Whether you are selling or buying, you can take control of the housing prices in 2020 by partnering with a wholesale mortgage lender. Bluepoint MORTGAGE was rated Top Workplace for 2019 and would absolutely love to help you find your next home! Call us today to see how we can help you buy a house in 2020!