Real estate industry has always been an attractive source of investment and it is predicted that the economy would grow higher in 2020, thereby limiting recession risks. This is good news for both buyers and sellers in different ways because buyers will have stable, decent-paying jobs to buy a house and suppliers will be able to sell off their properties and even put an increase in rentals. The economy flourished in 2019 and the fear of a decline for the year 2020 should not be focused on as it has been predicted that there will be modest growth in the economy this year. Asides the prices of real estate property skyrocketing there are some other trends to watch out for this year.
Millennials are dominating the market.
Millennials are dominating the real estate buyers’ market. Millennials now have stable, well-paying and it has been discovered that they will dominate the buyers’ market in 2020. Millennials are mostly interested in middle and upper-middle-class homes and sellers can tap into this by focusing their ads to reach this group of people. Use the internet to attract buyers since users will most likely do their research online first before deciding.
Loans are more accessible
There has been a lot of posts on social media about people being new homeowners it might or might not be due to conventional loan requirements become all the more accessible to people making it all the more easy to become homeowners. By lowering the down payment required with the credit scores to qualify for a loan, lenders have allowed for just about anybody to become homeowners.
Slow rise in home prices
Prices of houses are usually always sky-rocketing making it also a good investment for investors. In 2020, home prices will increase at a slow rate. Home prices are expected to increase at a slower rate. For investors that are looking for quick profits, 2020 might not be the year for such expectations and now might be the time to leave the market.
High demand for lower-priced houses
People are also moving to get lower-priced homes, millennials being the dominant group in this market will be buying a lower-priced home. The primary goal for this group of people is to be homeowners and size and neighbourhood are secondary goals.
Increased need for affordable homes
Last year witnessed an increase in the demand for affordable housing or a switch to affordable areas. In 2020, more people, both industrial and residential buys will look towards purchasing affordable.
Use of technology
Smart homes, property apps, online real estate market and use of 3d technology to view apartments dominated the past few years but there is a new introduction: the usage of artificial intelligence and machine learning. This technology will be introduced to the design and management of properties.
Due to a surge in the prices of houses and also based on rental statistics in Washington, there are more people renting properties than buying them. This, of course, is something we would see more of in 2020, has there would continue be a growing margin between people that can afford to buy houses and those that can only rent places. Short rentals will not only be good for vacations but for work purposes and there is likely to be a bloom here.
2020 holds a lot of promises for the real estate industry, it is going to reach greater heights despite a slower growth rate. This should help both home sellers and buyers make a decision. There are reliable resources online you can go through if you are interested in investing in the market.