Spring means a few things: warmer weather, deep cleaning, and the official start of real estate season. Thinking of selling, or looking to browse the market to buy? We are breaking down the top four real estate trends that you can expect to see in 2020.
Millennials At The Forefront: This generation is at pivotal ages when it comes to house-buying, with the younger end reaching the prime age for first-time homeownership, and the older end looking to expand their families (and therefore their square footage). This means a focus on smaller homes that are in more desirable locations – think close to lively restaurant scenes and attractions – and therefore require less maintenance. This also leads to another millennial must-have: move-in ready properties. Fixer-uppers are no longer as desirable as they once were, so this market will be looking for modern updates and pops of color.
Earlier Interest in House-Hunting: While the expected busy season is right around the corner, in some areas it’s already begun. Usually January heavily lags behind warmer months like April when it comes to interested homebuyers. However, many markets around the country are seeing earlier interest, as curious buyers look to capitalize on planning ahead of the trend. This makes it an ideal situation to list your home now – or start looking sooner rather than later if you’re a buyer– as inventory will be lower and desirable properties will get scooped up more quickly.
Slow Increases in Price: The market certainly expects home prices to increase every year, and this year will be no different. There will be a steady rise in home prices as compared to last year, however the increase may be slower than in previous years. What this means for homeowners is that it’s a great time to sell if you’re debating between this year or next, as this year will give you ample opportunity to get the value of what your home is worth. This is especially true if your home value is considered entry-level or mid-level for your city. Homes in these ranges will see the greatest demand, especially from first-time millennial homebuyers.
Interest Rates Will Remain Low: This is great news for both homeowners and buyers. The market is poised to bring in young buyers, with expected national rates at around 3.8%. This is great news for those in the city – which is where younger millennials prefer to be – and in the suburbs – where young families will look to relocate. If you’re a homeowner and you’ve been eyeing a few properties in the area, you’re poised to be in a good spot to bring in a competitive value for your home with a very desirable rate on your new home.
While we’re all looking forward to when the snow finally starts to thaw, we can start preparing now for these real estate trends. If you’re looking to get a jump-start on the buying process, or are thinking of taking advantage of the market by selling, give us a call. We can walk you through what you can expect to get you ahead of the curve.