Thinking of Buying or Selling Your Home in 2020?
If you’re in the market, consider these trends and tips.
In 2019, median home prices hit a record high and real estate experts predict that prices will continue to rise in 2020.1
Whether you’re planning to buy or sell, here are some 2020 real estate trends you should know.
- Demand for homes is predicted to be strong due to continued economic growth and low interest rates.
- Most buyers are expected to be millennials, though they comprised just 37% of all buyers last year.2
- As millennials acquire their first homes, many are leaving city apartments for homes in the suburbs or in more affordable regions.
- At the same time, baby boomers nearing retirement are downsizing to smaller homes—with the combination causing the supply of smaller entry-level homes to approach historic lows.3
- While the National Association of Homebuilders predicts an uptick in new construction, most will be larger homes, ideal for families looking to upgrade.
- A low interest rate environment will also make qualifying for mortgages relatively easy. Economists expect rates to remain around 3.7% for a 30-year mortgage and 3.2% for a 15-year mortgage in 2020.4
These factors will likely contribute to lots of real estate activity in the coming year. Are you ready to jump in?
Planning to Sell
If you’ve decided it’s time to sell, here are three quick tips:
1. Make your home stand out. Do some advance work to distinguish your home from similar ones in your area. If you’re considering upgrades, focus on popular features like laundry rooms, garage storage, and large pantries.
2. Update your online listing. Most millennials use their mobile devices for home searches, so your virtual first impression will be critical!
3. Work with a real estate agent to help you list your home at the right price. An experienced agent can help you set expectations for not only the price, but also for how long you may need to wait for the right offer. Working with a real estate agent who knows the local neighborhoods is the best way to find a home that fits your budget and your lifestyle. Not only can a trusted real estate agent to help you locate your next home, he or she will also help negotiate the price.
Whether you plan to buy or sell, make sure you take advantage of the current trends by partnering with a professional realtor.
Planning to Buy
Buying a home is one of the most important financial decisions you will make. Here are some tips:
1. Set your all-in budget before starting your search. Be sure to include expenses for not only mortgage payments and taxes, but also upgrades—both anticipated and unexpected. Consider factoring in an additional 2% of the purchase price for annual maintenance.
2. Distinguish your needs from your wants. If you can sacrifice some “nice-to-haves” in the short term, you can upgrade as you build your nest egg over time.
3. Keep an open mind. If you’re in a pricey market, consider expanding your search outside your desired area. Working with a real estate agent who knows the local neighborhoods is the best way to find a home that fits your budget and your lifestyle. Not only can a trusted real estate agent to help you locate your next home, he or she will also help negotiate the price.
1 “Housing Market Remains Strong,” Freddiemac.com, 2019.
2 “2019 Home Buyers and Sellers Generational Trends Report, “National Association of REALTORS® Research Group, 2019.
3 Realtor.com, 2019.
4 Payne, David, “Fed Signals Desire to Stand Pat,” Kiplinger, December 11, 2019.