Do you find yourself innately attracted to house architecture and trends? Does the exotic and scenic location of a residence inspire you? Have you always had an interest in knowing how the value of a piece of land is determined and in what ways does the real estate operate? If your answer is yes, then continue reading because we will be discussing the top 6 ongoing real estate trends of 2020.
Knowing real estate allows you to be fully abreast of the latest developments in the sector. You also find yourself better prepared to buy or sell a house, or to provide a piece of proper advice to someone seeking consultation on the steps they should take when buying or selling their property. So here’s what’s currently happening in the housing industry.
- Price Trends
When it comes to housing rates, there can be no denying that these have increased faster as compared to inflation overall, although at a stable rate. If we look at the last four quarters, it will be safe to conclude that the price change for the existing prices has stayed at five per cent. As far as residential rent is concerned, it did not rise beyond four per cent, meaning that it also has not changed much during the past few years. Nonetheless, buyer interest has not declined by any means so you might want to sell house fast. This is also supported by the fact that the percentage in 2019 remained at 12.4, compared to the previous year.
- Industry Trends
The decline or steadiness in the prices has led some to think that the market might crash, but this is not true. While it is difficult to tell if a sudden collapse is imminent, certain indicators do not support the notion. If you look at some of the statistics, you will notice a consistent upward trend. In 2014, some 4.94 million houses were sold, while in 2017, it went up to 5.51M. The rate went slightly down to 5.34M in 2018. As long as buyers continue to spend money, the housing market will not face any threat of collapse.
- Property Trends
In addition to the rate and buying statistics, it is also interesting to explore what sort of properties are gaining popularity among the buyers. Looking closely, you will find that buyers have been somewhat inclined towards homes designated for single families. But more recently, there has been some uptick in the sale of townhomes and condominiums. That could be due to the easing of financing for condos. Certain restrictions had been put in place during the financial crisis in 2008, which made it difficult to buy a condo. Experts also suggest that a further surge may be witnessed in demand for housing due to the rise in rents and steadier housing prices.
- Seller Trends
The house prices will either remain steady or rise further, over time. Estimates suggest that the prices will not witness any significant decline during 2020. So, from the seller’s point of view, if you are planning to sell your property before 2022, you will be at a clear advantage. Some reviews might suggest waiting for a considerable time to get an even better price on your property. This is because the scarcity of land may cause the number of buyers to rise.
- Buyer Trends
If you were born between 1981 and 1996, the chances are that you are or will be looking for your property soon. And this is not just an estimate as according to 2019 figures, millennials share the largest percentage of homebuyers in 2019, i.e. 37 per cent. These aspirants seem incredibly interested in having their property. But how can you attract millennial buyers? Well, property sellers found posting pictures of the homes online to be helpful because the generation in question is highly savvy of digital tools.
Some benefits and perks, such as the reduction in the commuting distance and value of the location, attract these young buyers. Some other key features, such as the patio, storage room, and laundry room, are bound to draw the interest of the young buyers.
- Future Trends
Although housing prices have not witnessed a decline, the future outlook seems quite promising. This is because the job industry is experiencing growth and incomes may be elevated. When that happens, it will enable more and more people to own their houses. Furthermore, interest rates may not be increasing anytime soon, and the demand for housing would remain high. In these circumstances, we are set to see more housing growth in the days to come.
Real estate has never been a dry subject, and the fact that the housing industry is witnessing an upsurge has made it even more interesting. This is a viable environment for both the buyers and the sellers and has opened the door for them to strike the best deal possible. So, if you have been looking to ink a property deal, this is the right time for it. So, act smart!