Expect the real estate market to dominate business news in 2020.
For those looking to sell or buy, we suggest creating a Google alert for real estate market trends. Changes are coming that may directly impact your ability to negotiate deals or purchase a property.
Investors, mortgage brokers, and homeowners learned valuable lessons in the 2008 financial crisis.
Historians will say the signs were there and people chose to overlook them. If we look back, the housing market was the first indication that trouble was brewing.
As we look forward to 2020, we have a clear view of where the housing market is headed.
Financial forecasters are already predicting several trends that will drive the markets. Realtors, investors, and potential homeowners need to be preparing if they plan to buy in the upcoming year.
The opportunities for good deals are still out there. Keep reading to see what trends will rule the market in 2020.
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Diminishing Affordable Housing
In almost every sector of the country, affordable housing is an issue.
The biggest contributing factor is that personal income is not keeping up with the increase in housing prices.
Everyday working people are finding it difficult to pay their rent. Once bills are paid, they have nothing left to save towards buying a home. This trend is causing a slowdown in the real estate market.
Adding to the current housing market issue is people resorting to renting out rooms in their homes to make ends meet. These renters are people that are vacating rental properties or homes they own.
Real Estate Market Trends for Millennials
Society likes to blame millennials for a lot that’s wrong with the world and we can add real estate market changes to the list.
First, millennials were being blamed for slumps in the market because they refused to move out of their parents’ homes.
Now that they are starting families and looking into homeownership, they are leading another trend.
Millennials know what they want, and they know how to go get it. When it comes to housing, they want to be surrounded by what feeds their lifestyles. Real estate investors are taking note and giving them what they want.
Expect to see more millennials moving out of city centers and purchasing homes in rural communities where the property is less expensive.
Builders are ensuring there will be parks and walking trails. Nearby businesses will include a Starbucks, yoga studio, and trendy places to eat.
Expect to see more movement in a real estate market trend under IRS Section 103 which deals with capital gains taxes.
Investors will seek protection under this rule as the market adjusts going forward.
It is how investors avoid tax liability on the money they earn from the sale of properties. It is beneficial to them if the goal is to take the money earned and reinvest it into another property.
The purchase of the new property is subject to certain rules including the timeframe between sell and purchase. The two properties also must be close in market value.
The Popularity of Smart Homes
Artificial technology is changing the way many people live.
Since there is a growing dependency on this technology, it is spreading into every aspect of our lives.
Smart homes are where the housing market is headed. New homes coming on the market are equipped with high tech home monitoring systems. Alexa is everywhere, and new companies are creating their own home assistants.
People are really getting a kick out of smart devices. They can turn lights on and off, and lock or unlock doors from remote locations. If you’re at the grocery store, you can even look into the refrigerator to see if you need milk.
Moving From a Seller’s Market to a Buyer’s Market
Real estate trends are seeing more housing remaining on the market for longer periods of time.
When this happens, home sellers get antsy and begin to drop housing prices. This is the first sign we are moving from a seller’s market into a buyer’s market.
This is good news for people seriously looking to buy a new home. It is also good news for those investing in properties.
The markets have not seen a downturn in investors looking to add to their portfolios. If they can get a property at a good deal, it helps to level out the real estate market. If an investor needs to unload a property, it could mean a good deal for a potential home buyer.
Digital Technology Integrations into House Shopping
As we move forward in every aspect of our lives, we can expect growth in digital technology.
Whether you are a realtor, seller, or home buyer, technology is changing the way home shopping will be done.
Technology is forecast to play a role in real estate market changes. The most popular trend is virtually staging homes and 360 real estate tours.
Now homeowners can use digital technology to create a virtual tour of their homes and load the images and video to homebuyer websites. Potential homeowners can search home inventory in their desired neighborhoods, take a tour of the home, street, and nearby businesses.
They get the specs on the home and neighborhood without ever having to leave the house. The potential buyer can narrow down their search before contacting a realtor.
This process saves time and is less intrusive to the home seller. In addition, realtors now have better tools to aid in the marketing of housing inventory.
Will These 2020 Real Estate Trends Impact You?
These are only a few of the real estate market trends we will see in 2020.
Although we don’t believe there will be a repeat of the past housing crisis, buyers and sellers need to take note.
Housing is vital to our economy and people will always need a place to stay.
Are you in the market to buy a home? Check out what’s on the market, and get some inspiration before you go housing shopping. Keep scrolling our page for more advice and info, too.