What if 2020 could be your biggest real estate year yet?
This can often be a very tricky market because the trends change from year to year. But by understanding the most important real estate trends of 2020, you can get an edge over your competition.
Want to learn what the trends are that are transforming the real estate market for 2020? Keep reading to discover the answer!
1. Slowly Rising Prices
At the center of any real estate discussion are home prices. So, what's going on with home prices in 2020?
It's a bit of "good news, bad news." While home prices continue to rise from year to year, the rise is relatively slow. In fact, experts predict home prices are only going to increase by 2.8% in 2020.
Low as it may be, the constant rise in value from year to year makes real estate a great investment.
2. Focus On Starter Homes
The real estate market is largely determined by buyers. So, how are buyers influencing the current landscape?
One short answer to that question is that they are driving a focus back towards starter homes. Such homes make real estate more affordable while also attracting buyers who are likely to move to find a new job.
In fact, this focus on starter homes is related to another major trend: the rise of millennial buyers as first-time home buyers.
3. Rise of The Millennials
Millennials are the largest single group of homebuyers. As of 2015, a whopping 37% of millennials had become homeowners.
This "rise of the millennials" means that sellers may need to adjust how they sell homes. For example, millennials respond better to more robust online listings.
Additionally, millennials are more interested in various perks of real estate location rather than raw house size. Factors like proximity to schools, museums, and art galleries can sway a millennial to buy a home.
4. The Owner/Renter Gap
Here's another bit of mixed news for those in the real estate market: the gap between homeowners and renters continues to grow.
Despite the low unemployment rate, the truth is that many people can't afford to buy a home. Therefore, the rental market continues to grow each year.
That means now may be the perfect time to begin renting out property. In more urban areas, you may consider renting out different areas of a single-family home for maximum value.
5. Concentrated Demand
A final trend that won't be going away anytime soon: homeownership is growing in areas where new jobs are being created.
When a small area begins to grow, it creates the new for a variety of jobs. This includes traditional office and service jobs and the various jobs that help support the surrounding community.
If you're looking to break into real estate, the importance of "location, location, location" is greater than ever. Invest in a growing market and your profits will grow accordingly.
Real Estate Trends: Your Next Move
Now you know about the top real estate trends of 2020. But do you know who can help you make the most of this market?
We specialize in the buying, selling, and marketing of real estate. To see what we can do for you and your properties, contact us today!