2019 is coming to an end, and with a new year comes new trends in real estate.
Not only is it the start of a new year, but it’s also the start a new decade, and this might be the time for you to make a change and decide to buy a new home or put your home on the market.
Whether you plan on buying or selling this year, it’s important to have your finger on the pulse of the real estate market to know what to expect. Keep reading to find out the biggest real estate trends we see coming in 2020!
Slowly Rising Home Prices
The Economic Housing & Research Group found that home prices will rise by about 2.8% in 2020. This is slightly down from the increases we’ve seen in 2019 (3.3%) and 2018 (5%). While home prices have been slightly increasing over the past few years, the growth is steady and not too dramatic.
For sellers, increasing home prices mean that a nice profit could be coming for you. Now might be the time to prepare your home to go on the market.
For buyers, there are a few steps you can take to make sure you’re ready to shop for a home in a higher market. Crunch the numbers to figure out what your budget is, keep saving, and figure out what you are looking for in a home so you can start the search for the right home for you.
Increase in First Time Buyers
Anywhere from 8.3 million to 9.2 million first-time homebuyers will enter the housing market between 2020 and 2022, according to a study by Transunion. This is a steady increase from 6.67 million in 2013-2015, and 7.64 in 2016-2018.
In previous years, challenges like high home prices, slow wage growth, and limited housing inventory have contributed to a drop in homeownership rates. As unemployment has dropped and we’ve seen overall wage growth, this growth in first-time home buyers will contribute to an overall growth in homeownership in 2020.
One of the biggest trends we saw in 2019 which will continue to grow in 2020 is the rise of millennial buyers, which are now the largest group of home buyers. Unlike previous generations, where buying a home typically came along with getting married and having children, many millennials are citing more privacy and building wealth as a reason to buy a home.
If you’re selling a house this year, it’s important to consider what millennials want since they make up most of the buyers’ market. As a tech-savvy generation, almost all millennials use the internet for their home search, so many sure you have your home listed online with high quality images.
Expert studies on millennial home buying preferences have found that hardwood front exteriors, patios, garage storage, and walk-in pantries are a few of the features that they prefer, so consider making these upgrades to make your home more appealing.
As a millennial buyer, consider working with a licensed Realtor on your home buying search. Many first-time, younger buyers aren’t aware of all the options they have in the home search, especially when it comes to financing and mortgage, so having an expert to guide you through can make the process run smoothly.
Work with An Experienced Realtor in Southwest Florida
If 2020 is your year to buy or sell a home, work with a Southwest Florida Realtor to make the experience as easy and stress-free as possible.
Jay Montgomery is a licensed real estate agent that specializes in buying and selling homes throughout all of Southwest Florida with 14+ years of experience. His expertise can help you find your dream home or easily list and sell your property.
To get started, call Jay at (239) 301-9453 or contact us online today!