2020 REAL ESTATE TRENDS
“What you NEED to know”
2019 has served us well and was quite a year for the U.S. housing market. Median home prices went all the way up to $316,000. A record high! But, will 2020 bring more of the same results? How will the housing market shake out in the current economic climate?
Here are the 2020 real estate trends you need to know!
1. Home Prices Are Still Rising Slowly
Overall, home prices grew slower in 2019 (3.3%) than in 2018 (5%). And this year seems like it will be no different. In fact, real estate gurus predict that home prices will only rise by 2.8% in 2020.2 So, you’ll likely see home prices continue to creep up, but they probably won’t knock your socks off with rapid growth like we’ve seen in previous years.
Real estate gurus predict that home prices will only rise by 2.8% in 2020.
2. Mortgage Interest Rates Are on the Decline (for Now)
Mortgage interest rates have been going down in 2019. Steadily dropping below 4% for common types of loans.3,4 In 2020, economist geeks think interest rates will stay around 3.7% for a 30-year mortgage and 3.2% for a 15-year mortgage (the only type of mortgage we recommend).
In 2020, economist geeks think interest rates will stay around 3.7% for a 30-year mortgage and 3.2% for a 15-year mortgage.
But this is never a guarantee because things like tariffs and trade wars might gradually shift the economy, which could result in the Federal Reserve slowly increasing interest rates to balance things out according to reports.
3. The Majority of Home Buyers Are Still Millennials
That’s right, our final trend is about who is buying homes. And once again, millennials took the lead as the largest group (37%) of home buyers last year.
What is a millennial exactly? Well, the nerdy answer is anyone born between 1980 and 1998. The easiest way to spot a millennial home buyer? They can’t wait to post a pic of their new home on Instagram!
Do you think these trends will affect you and your business? Let us know in the comment section below!
About the writer: Shaura Cuyan writes about all the hottest Real Estate trends and predictions for Summit VA Solutions! She has previously written for a number of freelancing gigs and writes her own blog on lifestyle and current issues. She is a Graduate of Bachelor of Arts in Communication, taking up her Masters in Development Communication.