Real Estate Market Trends You Need to Know for 2020
We experienced median home selling prices rise to $316,000 in 2019. This is an all-time record high! With 2020 in full swing, let’s take a look at what’s expected for the real estate market in the upcoming year. We have listed the top real estate market trends you need to know to be prepared for the 2020 housing market.
Real Estate Market Trend #1: Millennials are Still the Dominant Home Buyer
The millennial generation consists of those born between 1980-1995. Millennials can be characterized as being highly confident, technologically advanced, having a high education level, and being socially connected. This generation is now considered the largest in history, so it is important to understand their buying habits.
Technology and the rise of the internet have become a vital part of the home buying process. Thus, millennials are more likely to search online to start the purchase of a home. Over half of millennial buyers start their home search on a mobile phone, as they tend to prefer doing their own research first before contacting an agent. Also, according to the National Association of Realtors, when looking on a desktop computer, high-quality photos of a home are what millennials consider to be most crucial when searching for a listing.
Tips for Selling to Millennial Home Buyers
- Update your online listing. Since most millennials use the internet to search for a home, it is imperative your listing has an exceptional online presence. With that said, include high-quality listing pictures of the home. Including video or drone footage, if possible, can also give your listing extra attraction.
- Highlight the features and perks of your home over the size. Make sure to include a thoughtful list of features and perks for your listing to capture a millennial buyer’s attention. Millennials tend to care more about how far the commute is to work or the quality of the neighborhood over actual square footage. In addition, home features such as patio, garage storage, walk-in pantry, and laundry room are ones that millennials are highly interested in when purchasing a home.
Real Estate Market Trend #2: Selling Prices of Homes are Still Rising… Slowly
According to real estate market sources, home prices are predicted to rise by 2.8% in 2020. The Atlanta real estate market has seen a 6.7% increase of home prices since 2018, and the demand for homes is still high. Although prices have risen more rapidly in previous years, price growth continues to be positive for sellers.
What does a higher selling price mean for sellers?
While higher prices could provide sellers a larger profit, it is important sellers consider the competition. Pricing your home correctly is the key to receiving the most offers and making your listing stand out from the rest.
What does a higher selling price mean for buyers?
Buying a home in an expensive market can be daunting. Calculate your budget and stick with it. Be aware that purchasing a home in this market may cause you to sacrifice some of your wants for necessities. Also, be willing and open to find a more affordable home and then upgrade later as you save over time. It may also be worth expanding your home search process to look in other locations to maintain your budget. You may be surprised to find many hidden gems in a neighborhood you didn’t originally consider.
Real Estate Market Trend #3: Mortgage Interest Rates are Declining
Mortgage rates steadily decreased throughout 2019 and continue to remain low in the first month of 2020. Real estate economists believe interest rates will remain around 3.7% for a 30-year mortgage and 3.2% for a 15-year mortgage. This is great for home sellers as buyers will be more driven to purchase a home sooner rather than later.
Interested in buying or selling a home in the new year? Let Mark Spain Real Estate help you through your real estate journey in 2020! With our unparalleled customer service and over 20,000 satisfied clients, we are proud to be the #1 real estate firm in the southeast. Contact us today and start packing!