January 10, 2020 | 3 Minute read
If you think back to ten years ago, it can be hard to remember how different the real estate landscape was. Many homeowners were desperately trying to hold on to their homes, while others were doing everything they could think of to find a buyer for their home. At the same time, those home buyers were struggling to find a lender who would work with them, as many lenders were newly skittish and hesitant to extend new mortgage loans.
While it can be difficult to remember, the past decade or so has been the most consequential stretch in our nation’s real estate history — one that has fundamentally altered the landscape that we know today. In today’s market, affordable midsize cities are hot and Baby Boomers and Gen Xers are no longer the dominant force in the home buying pool, turning over that title to Millennials.
So what else is in store for 2020? What can you expect to see in the real estate market in the coming year? Let’s take a closer look at some of the biggest factors that will be shaping real estate in 2020.
While it’s certainly not as catchy as “location, location, location” the mantra for 2020 could very well be “affordability, affordability, affordability.” Achievable price points will be key in 2020, as more Millennials continue to dip their toes into the homeownership waters, solidifying their position as the biggest generation in home buying.
Crazy price growth seems to have hit its limit, with buyers appearing to be, well, over overpaying. While many home buyers would still love to live in uber-popular big cities like San Francisco or New York, we’re seeing that they will definitely make the decision to go to another city — for the right price.
Most people tend to start thinking about buying their first home around the age of 30, and the largest portion of Millennials will turn 30 in 2020. By the middle of next year, Millennials are predicted to account for more than half of all mortgages taken out in the United States. That’s right — more than all other generations combined.
Millennials are going to be active in the real estate market in 2020, as family changes drive their home-buying decisions. Expect to see trends in real estate that cater to young families, as the generation continues to flood the market.
Those who are looking to buy a home in 2020 will likely face serious competition, so they should be prepared for the search to take a while — and to act quickly when they find a house they love. Working with the right real estate agent is key in a successful purchase. Work with someone who knows your local market inside and out, and who will act with your best interests in mind.
Those who are selling a home in 2020, especially an entry-level home, should be in great shape, since these will likely be the most in-demand properties next year. Working with the right real estate agent can help ensure that you don’t leave any money on the table, by helping you price your property correctly to get top dollar for your home.
As we mentioned, working with the right real estate agent is so important when buying or selling a home — in 2020 and beyond. Reali provides the same hands-on, local support that you would expect to receive from a traditional agent, at a fraction of the cost to buyers and sellers. Our streamlined and sophisticated processes, including our one-of-a-kind Reali App, make our work more efficient so that we can conduct business with less overhead. The result: we pass that savings on to you.