Are you looking to buy or sell property? Before visiting the best real estate websites, it pays to know the latest real estate trends. What does the 2020 hold for the real estate sector?
Well, one thing is for sure: the prices of real estate property will continue to skyrocket in 2020 and beyond. The economic downturn and a change in the new buyer demographic are the main reasons behind this.
Keep reading as we fill you in on the latest real estate trends of 2020. Hopefully, this information will help you make the right decision regarding any potential real estate plans you might have.
Commercial Real Estate Sector Set to Grow
Are you interested in purchasing a property in the commercial sector? You’ll be happy to know that the commercial real estate sector is set to grow. This growth will happen at a slow pace, but it will grow nonetheless.
The key reason behind this growth is that the commercial industry has been receiving a healthy flow of capital. This is mainly because of the general increase in overall global transactions that took place back in 2018.
The Logistics Sector is the Preferred Investment Destination in the Real Estate Sector
In case you’re wondering which exact sector to rally behind where property investment is concerned, consider backing the logistics sector.
Despite property in the logistics industry being over-priced, the sector continues to attract plenty of investors. This is because of the growing global investment sales highlighted earlier.
Prices of Homes Are Set to Rise at a Slow Pace
Are you looking to buy an already built home? You may appreciate that though prices of homes are set to rise, it’ll happen at a slow rate. As such, your plans of buying a home won’t be entirely thrown off-track. You can still manage to do so.
This price increase of property at a slow pace explains why people aren’t too keen on selling their homes, as evidenced by the fact that the number of home listings has only increased slightly.
The two main reasons why homeowners are opting to hold on to their properties include:
- The ongoing economic uncertainty
- Increased mortgage rates
An Increase in New Home Construction is Expected
On the flip side, the story is quite the opposite when it comes to purchasing a newly-built home. Not everyone is shying away from buying homes—particularly those who want newly- built homes.
As a result, the home construction industry is set to increase. So all hope isn’t lost for real estate sellers who’ll still manage to rake in the profits—even though it’ll be at a much slower rate.
If you’re planning on selling your home, we strongly advise that you still tread carefully because the decrease in offers can’t be ruled out entirely. Your best bet is to work with real estate agents who know what exactly is transpiring in the market.
Mortgage Interest Rates Are Rising
For the longest time, mortgage interest rates were stagnant. But they’re expected to rise from 2020 going forth. This comes after the US government increased interest rates in a bid to stabilize inflation as well as the economy as a whole.
Millennials Are the New Majority Homeowners
Believe it not, but millennials are dominating the homeowners market. This is because most millennials boast having stable jobs with considerably hefty paychecks. As such, they can afford to buy residential property, especially in middle to upper-class areas.
If you’re a home seller, you might want to target millennials to successfully sell your home. This means that it’s time to get more active on the internet. Why? Because that’s where millennials spend most of their time!
It follows that when looking to purchase homes, millennials will browse the internet for information regarding potential home purchases.
Also, as a seller, make sure that you’re offering a home with plenty of space. The chances are that millennials are looking to buy spacious homes where they can start and raise their families.
People are to Rent Homes More than They Buy
Given the high cost of buying a home, it comes as no surprise why people opt to rent rather than purchase. And this scenario isn’t likely to change unless more affordable homes are presented on the market.
Quite frankly, most people would rather own homes, but their salaries, unfortunately, don’t allow them to realize their dreams.
People opt to Buy Property in Second Tier as Opposed to First-Tier Cities
Again, due to the high costs of property in first-tier cities, people naturally go for the next best alternative—purchasing in second-tier cities.
As a result, property investment in second-tier cities has increased significantly. But because of the law of supply and demand, this has also pushed the prices of properties in second-tier cities up.
Technology Set to Be Embraced More in the Real Estate Sector
In this digital era, it’s only befitting that the real sector embraces technology. It’s not only millennials who “live on the internet’’. Nowadays, the first place a person goes when looking for any kind of service or product is online. And that includes people looking to purchase or sell homes. As such, it’s imperative that the real estate sector make use of online home selling platforms and apps.
Sellers must post their listing online so that they’re easily accessible to a wider target market.
Besides, with many companies resorting to artificial intelligence to streamline their work processes and become more efficient, the real estate sector must follow suit. This way, as a seller, you can:
- Post more listings
- Provide feedback to inquiries quicker
- Respond to queries faster
- Process applications at a higher rate
And there you have it. The trends are in, and it’s time to make some important decisions. Will you go ahead and buy or sell your property, or are you going to stay put for now? Whatever the case, visit the best real estate websites to keep up to date with information in the sector.