Real Estate is a fun adventure for everyone that's involved in it: agents, homeowners, and buyers alike.
One of the most fascinating parts of the real estate market is that it's constantly changing. The current setbacks that you're experiencing could become a benefit depending on how the market shifts.
Because of that, there are several trends to keep up with and jump all over when the time comes.
In order to act on a trend, you have to know when it's coming and be prepared to strike.
Here are the top real estate trends heading into 2020 and kicking off the new decade.
1. Home Prices Are Rising
Depending on the person that's reading this article, this first fact could be viewed as a good thing or a bad thing.
However, both sides should view it as a level piece of news. One that has pros and cons for either buyers or sellers.
For sellers, higher home prices mean the obvious benefit of a higher return than you might have gotten a few years prior. However, it also means you'll receive fewer offers on the home.
Homebuyers are smart. They either study the industry or hire someone that studies it for them. That means you need to be prepared to battle through lower offers or wait for the right offer to come along.
For buyers, higher home prices mean taking a more strategized approach. You simply cannot afford (no pun intended) to pay for a home above your budget.
Buying a home when the market is high means reducing the likelihood that you'll receive a profit as you go to sell it down the line. It makes it harder to gain home equity.
Regardless of which side you're on (seller or buyer), be patient and wait for the right situation to come about. When it does, act on it... they don't come around often.
2. Quicker Home Insurance Claims Process
This is music to any home insurance holder's ears. Who wouldn't be praying for an expedited claims process when you need money most?
In fact, a private insurance adjuster can help you calculate the amount of damage and rebuilding costs to get the amount you need.
They don't just attack your insurance company and put a strain on that relationship.
Instead, they'll work with your insurance provider and provide you with safety in the form of tracking payments and the payment amounts. All in all, this means a quicker and more efficient claims process.
3. Corporate America Continues to Feed Markets
Most of the top markets (in terms of cities) have remained consistent over the past several years.
Needless to say, most of the top cities on that list such as Seattle, Los Angeles, Orlando, Dallas, Atlanta, Nashville, and Boston, wouldn't surprise anyone.
However, that doesn't mean there isn't room for smaller markets to grow as well.
In fact, markets like Indianapolis, Portland, and Charleston (South Carolina) are thriving off a market flooded with millennial homebuyers.
So... what's the big secret? Why are these markets continuing to grow at a rapid pace? In short: they're home to big-time companies. Take Seattle, for example, which is home to titans such as Amazon, Microsoft, and Starbucks.
Atlanta is home to companies like Home Depot, Delta Air Lines, Coca-Cola, United Parcel Service (UPS)... You get the idea.
Where big companies grow, the market follows. Thus the need for housing explodes and the entire city benefits. Looking to buy a home in a city that will soon be thriving? Your best guess is finding a city where people are flocking to.
4. Millennials Continue to Be a Majority of Homebuyers
Remember those pesky millennials that used to fill your neighborhood streets with street hockey games and watch VHS videos? Well... now they're buying homes.
Not only that, but they make up a majority of all homebuyers.
So... what does that mean if you're selling your home? You need to cater to them.
Place your home online, use social media to push it, find the sites they're going to when browsing the market. Be sure to list any and all benefits and amenities. They focus on those more than anything else.
In fact, here are some things that millennials are prioritizing most: in-home laundry, walk-in closets, a garage, and hardwood floors.
If you're a buyer, this means that the house you deem as your "dream home" will have a lot of competition in order to close on it. You'll have to separate yourself from the pack in order to beat them out.
How do you do that? Try handwriting a letter to the seller explaining why it's your dream home, get a real estate agent on your side, and build a relationship with the selling family/agent.
5. Mortgage Interests Rates Should Stay Low
For the past four years (since 2016), mortgage interest rates have stayed consistently around 4-percent.
Experts are saying that they expect this to remain the same going into 2020.
In fact, they believe that the average 30-year fixed mortgage will hover around that range of 4 to 5-percent.
If you've ever considered buying a home and are tired of the high rental rates from month to month. Now would be a great time to escape those in favor of owning your own property.
Take These Top Real Estate Trends into Consideration
Buying or selling a home should always be carefully considered. However, some of the top real estate trends are justifying your decision now more than ever before.
If you're not sure what your next move should be, seek out professional help and ask them questions about what they would advise for your situation.
Be sure to read our other articles that pertain to both this topic and others just like it.