2020 is proving to be an interesting year for the real estate market. The COVID-19 pandemic is definitely creating a worldwide economic uncertainty which is affecting the housing market and real estate trends. As new trends and predictions continue to change, it’s important to keep up with new developments no matter if you’re selling, buying or just staying informed. If you want to make easier sense of the real estate market of 2020, here are some trends you should keep in mind.
Prices are still going strong
Let’s start with the most important aspect—prices. By April 2020, prices of homes grew a little bit but had a big fall from the astronomical growth rate in March. This pause in price growth is probably due to the panic caused by COVID-19 and future uncertainty people started living in.
However, as things started stabilizing and people started to get used to their new reality, prices moved to their normal growth rate in May. This trend might mean that real estate is regaining momentum, however, while they might continue to grow, they won’t shock you by skyrocketing like in previous years.
Mortgage rates are dropping
On the other hand, mortgage rates are steadily going down (this started happening even before the pandemic). For instance, prices of average interest rates for a regular 15-year mortgage dropped to 2.69% which is the record low in over seven years. Experts think interest rates will stay low and affordable until the economy goes back to normal or at least come close to normal.
Planning industry is blooming
The future of cities looks a little uncertain since controlling pandemics from such densely-populated places is hard. However, thanks to excellent experts in urban development, people can get useful advice and achieve positive outcomes for everyone. Infrastructure planning and environmental assessment are also important, so agencies that handle everything connected to property and infrastructure have the right future in real estate in the future.
Millennials are taking over
The next trend in real estate concerns the buyers. In 2020, Millennials still have the lead as the main home buyers. In the last year, almost 40% of all buyers were born between 1980 and 1998 which puts them in the Millennial category.
Online listings are the main source of information
Since the Millennials took over, the importance of the internet for home search is skyrocketing. Almost all Millennials use the internet to look at properties and almost 80% of them found their future home on a mobile phone. So, sellers in 2020 need to leave the best possible impression on buyers with online content and virtual tours, especially since COVID-19 prevents in-person tours.
Square footage is not everything
Square footage was always important in real estate, but it’s not everything. In recent years, with the Millennial buyers breaking through, people are more concerned with costs and commuting opportunities than with square footage. The proximity to good schools is one of the key factors in deciding which home to buy. Sellers should put their practical location, handy features and highlight eco-friendly benefits instead of relying on the size of their property. Some of the more coveted features among Millennials are laundry rooms, patio spaces and garage storage, so if you have a property for sale that has these amenities, make sure to highlight them.
The location is not so important
Home prices are having a more-or-less steady climb, even in 2020, so some buyers are getting a little desperate. This trend results in buyers willing to compromise and opt for properties in less-developed and less-connected neighborhoods. So, if a seller has a property without easy highway access or proximity to work and education, now might be the perfect time to sell since buyers don’t have much choice.
The real estate market might be a little shaken, but judging by these trends, 2020 will be a good year for real estate. No matter if you’re buying or selling, knowing what’s what is a great way to strike a good price and be happy.
By Chloe Taylor