It’s been a challenging year so far, not just for the real estate market but for all industries. With so much going on, sometimes it is hard to predict the outcome of the situation.
Regardless of the new situation, the real estate business cannot stop, and you have to be aware of the latest situation, whether you are selling, buying, or staying put.
In today’s article, we will cover some of the top real estate trends you need to be aware of just so you can make the right decisions.
1. Home Prices Are Still Rising
Many people expected a massive drop in the home prices just because of the situation with the coronavirus, but actually, they are still registering a slow but steady rise.
In April 2020, the home prices grew by 0.6%, which is a small rise compared to last year’s 4%.
However, home prices started to get back on the same rising trend, and by May 2020, the price increased by 3%.
So, you don’t need to sell your property if you thought that there would be a considerable price drop.
2. Mortgage Interest Rates Are Very Low
Even before the pandemic, the mortgage interest rates have been trending down, and the situation will continue until the end of this year.
Some countries have mortgage interest rates lowest that they’ve ever been in more than ten years.
In fact, you can get a 15-year- a fixed-rate mortgage for as low as 2.69%, which is an excellent interest rate.
This is a win-win situation for both sellers and buyers. Sellers will be able to sell homes much faster since buyers are more motivated to buy their dream home, considering the low-interest rate.
On the other hand, buyers have the opportunity to save money that usually would go for paying higher interest.
3. Majority of Home Buyers are Millennials
Who is buying homes is an interesting debate that could change the whole way the real estate market is working.
Currently, millennials lead the largest group for new home buyers with close to 40%.
Millennials are people born between 1980 and 1998. The first trend that the real estate industry will go for is transforming how they present properties to buyers.
For instance, millennials will prefer to use the internet for a home search, so real estate agencies have to target this audience group. No wonder why there is a huge rise in starting an internet business.
Additionally, square footage is important, but millennials are more concerned about commuting costs, and how close is their property to schools and good quality neighborhood.
4. Very Unlikely to see the Real Estate Market Crash
Even though we live through possibly the biggest economic crisis the world has ever faced, it seems like the real estate market will come out barely untouched.
However, there is always a chance to see the housing market collapse again, but it is impossible to predict.
If you base your decisions on current standing, it is a good time to buy and sell houses just as you would typically do.
The only trouble is that some real estate agencies have trouble finding customers since people are saving money due to the pandemic, and some of them lost their jobs.
5. There is a Market for Every Home
Regardless of your neighborhood, buyers are still interested. We have experienced rapid growth in home prices in the past couple of years.
In fact, the biggest rise happened in badly rated neighborhoods. That is why sellers are investing their money into buying properties in low-rated neighborhoods and expect to score a huge profit when the price goes up.
These are some of the real estate trends you need to be aware of in 2020. The real estate business is hard, and you need to do a lot of research in order to have a small projection of the future.
Until now, everything goes well despite the economic crisis, but only time will tell if this story would have a happy end for everyone.