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With the new decade comes new trends in real estate. Strong economic growth and more millennials making moves will likely keep the market strong. However, it pays to take note of all trends affecting buyers, sellers, investors, and renters. Here are a few real estate trends and predictions for 2020.
Most Buyers Are Millennials
The children of the 80s and 90s will account for over a third of all homebuyers. If you're a seller, make sure your listing ranks high in web searches and features detailed photos and possibly a video tour. Be available via email, text, and social media. Spotlight not only the features of your home, but the perks of the location. And if you're a buyer, be sure to hire a real estate agent to make sure everything goes smoothly.
Interest Rates Will Remain Low
Continuing from a 2019 decrease, interest rates will likely remain low throughout 2020. However, the trade war, tariffs, and the presidential election may shift the market in the later part of the year and into 2021. A potential economic shift may prompt buyers to secure a deal sooner rather than later.
Rent Control Will Continue to Spread
With more states adopting bills limiting annual rent hikes, property owners may see a drop in revenue. Prospective investors are wary of purchasing multifamily properties and may consider slimming down their existing portfolios. With owners having a reduced budget, renters may see a drop in the quality of rental homes and maintenance services rendered.
Home Prices Will Continue to Rise Slowly
Experts predict that home prices will rise by approximately three percent in 2020. For sellers, this may shrink the pool of potential buyers. However, those with the finances to purchase will still be inclined to purchase, giving sellers a nice profit. If you're a seller, marketing is your ace in the hole. Highlight what makes your home stand out from the competition, and advertise through multiple online and offline venues.
Buyer Interest Will Remain High
Rising home prices will likely cause many buyers to forego a few items on their home checklist. Eager buyers may consider less convenient locations and older homes that may need some renovating. Now is an ideal time to sell, even if your home isn't the pinnacle of desirability. Making a few smart upgrades to your home may be just the thing to nudge a buyer over the fence.
As the next presidential cycle approaches, we will likely see new real estate trends emerge and old ones fade. The economy is strong, and jobs are plentiful. One thing's for sure; great deals are to be made whether you're buying or selling.