Looking back at real-estate trends in 2019, it was a really good year for property business. A median home sold in the market even priced up to $316,000. It was a high price for a medium-sized home. But, will 2020 bring the same trend to the property business, if not higher? Either you want to buy or sell a home, here are property trends in 2020 that you should know before starting the business.
#1. House Prices Are Rising Slowly
Speaking about trends in property, house prices are a good start. Compared to the home prices in 2019, the prices of houses in 2020 are predicted to grow slower. The home prices in 2020 are estimated to only rise by 2.8%. This is 1.5% lower than the prices of houses in 2019. As for sellers, this trend will bring more profit to their business. However, you need to keep in mind that with the slow rising of the house prices, many buyers will not rush to purchase a property. This means that the offers for your home might be fewer than expected.
#2. Declined Mortgage Interest Rates
Mortgage interest rates in 2020 are on the decline, at least for this moment. It continues the previous mortgage interest rates trend in 2019 that steadily dropping under 4%. Property experts predict that the interest rates in the current property trends will be about 3.7% for a 30-year mortgage. Meanwhile, the interest rates will stay around 3.2% for a 15-year mortgage. However, you should keep in mind that things like trade wars or tariffs may change the economy. This will push the Federal Service to increase the interest rates to get things balanced. So, the declining mortgage interest rates occur now is not a guarantee.
#3. More Listings for Luxury Homes
Property experts also predict that there will be more high-end homes put on the list in 2020. This is based on the fact that most sellers will get high incentives from the high prices of luxury houses. Some cities in the United States such as Seattle, San Jose, and Nashville are expected to list more luxury homes in the market. This is also expected that the cities will boost the growth of luxury homes inventory and spreadhead it nationwide. Though you might see a small reduction in the prices offered, this good trend is expected to continue positively in 2020.
#4. Millennials Are the Majority of House Buyers
Millennials as the majority of home buyers (37%) become one of the property trends in 2020 you should anticipate. So, if you are a buyer, make sure that you upgrade your online listing. This is because most millennials prefer to use the internet to find the house of their dreams. But, if you are a millennial who wants to buy your first house, make sure that you know what you want. Set up in your mind what you need the most from the home you would buy. This can be the first good start to find a house that meets your needs and budget.