What Are the Top 2020 Trends in Real Estate?
2019 was a great year in the United States for the housing market. Looking forward, we should see some similar results. Let’s take a look at a few of the top 2020 real estate trends.
Trend #1: Home Prices Will Continue to Rise
In 2019, home prices grew, but slightly slower compared to 2018. In 2020, you can expect to see a similar trend: home prices will continue to rise but at a slightly lower rate than 2019. In fact, according to FreddieMac research, prices are expected to increase only by around 2.8% this year.
Of course, higher prices for sellers means potentially higher profits. At the same time, it’s important to remember that many buyers are currently being priced out of the housing market, which may mean fewer offers on your home. Be sure to get your home ready for sale and work with a good real estate agent that can help you move your property at the right price and at the right time.
For buyers, the perspective is naturally reversed. Higher prices for buyers means they must be clear about how much house they can actually afford. A mortgage calculator is an excellent tool to see what payments would be at different home price levels and interest rates. This will help buyers determine the price range that will fit into their budget and then commit to staying within those boundaries.
Trend # 2: Mortgage Interest Rates Will Likely Continue to Decline
Mortgage interest rates steadily declined in 2019, ultimately going below 4% for most common loans. Mortgage interest rates in 2020 should continue to decline slightly, with 30-year mortgage rates expected to come in around 3.7%, and 15-year mortgage rates coming in closer to 3.2%. Of course, no one has a crystal ball, so be sure to keep in communication with your realtor about possible changes throughout the year.
Trend #3: Millennial Buyers Dominate
In 2019, millennials (born between 1980 and 1998) were the largest home-buying group taking around 37% of home sales. This is expected to remain consistent in 2020. This group is internet savvy, with nearly all using researching homes online. What this means for home sellers is they need to focus on creating a quality online presence, including quality photos and perhaps digital video tour of the home.
Hire a Quality Real Estate Agent
Berkshire Hathaway HomeServices John M. Brabham Real Estate Agency is a quality realtor serving greater Sumter, SC region. Our expert and top-performing agents will help you make the most out of these 2020 trends whether you are looking to sell, rent, or buy real estate. Call us TODAY at (803) 775-1201 to schedule an appointment or visit us online. Please also ‘Like’ on Facebook!