To say that 2020 has been a challenging year would be an understatement! With so much happening, you may wonder how that’s impacting real estate. Surprisingly, effects to real estate have been minimal. Median home prices are up and the number of days homes are spending on the market are down. Whether you’re buying or selling, here’s a look at the trends you need to know!
Trend #1 Home Prices are Still Rising (Slowly)
Home prices are gaining momentum after the slow start in 2020 due to COVID. It is expected that they will continue to make their way up and end the year with a 4% overall growth. Home prices continue to creep up, but they probably won’t blow you away with rapid growth as seen in previous years.
Trend #2 Mortgage Interest Rates are Super Low
Mortgage rates were on the way down even before the pandemic but are now the lowest they’ve been in years! Economists think rates will continue to stay low until the economy is close to normal again. Low interest rates are great news for buyers. Even with the rise in home prices, buyers have increased buying power with a lower monthly mortgage payment.
Trend #3 Millennial Home Buyers are the Majority
Once again this year, millennials take the lead as the largest group buying homes. What is a millennial? Technically, it’s anyone born between 1980 and 1998. Why is this important? Because you need to know your buyer. Millennials are internet savvy and do research online. Virtually all (98%) use the internet in their home search, and 78% found the home they eventually purchased on a mobile device. It is extremely important to make sure your online listing makes a great first impression.
Whether you’re buying or selling in 2020, you can take advantage of current trends by partnering with a local REALTOR®. Get in touch to start exploring your options and to find out if this year is the right time for you to make a move.