Recently I stumbled on a series called Selling Sunset on Netflix. It is a reality TV show that is focused on high-end residential properties. Based on your budget, they can find something that works for you. It is from this show that I was enlightened and became curious about the real estate industry. With how much our surroundings are changing, investing in real estate is a viable option. There is so much untapped potential that is yet to be discovered in the country. With the high rates of population growth, more and more houses will be needed. What is even more interesting is that now people are willing to invest heavily in a good home. Getting a mortgage to purchase a house is nothing new. People have acknowledged the benefits of having a good home for their families.
Investors are already taking advantage of this opportunity. Real estate has always been an attractive venture for many people around the globe. The demand for this service is still strong in many areas. The United States, in July 2019, recorded an increase in home sales. The sale for existing and new homes increased respectively by 2.5% and 4.3%. Also, construction activities have improved with home starts and completion, taking shape in the country. Just like essay writing, the real estate venture needs focus, detailed research, and analysis. You need to understand the market to influence informed decisions. Don’t just rely on your lawyer or real estate agent. Get to know the in’s and out of business, especially when you want to invest or purchase a home.
Studies show that change is inevitable. This is why the constant analysis of emerging trends in this field is imperative. When change is subtle, chances are you may not notice any drifts. With the analysis of trends, know that real estate is subject to various kinds of factors. In the world that we live in the real estate business is subject to many other external influences. I am talking about political and economic factors. What remains as a constant is the desire to grow this industry.
What are some of these trends you need to know about in 2020?
- Home prices are slowly rising.
With the craziness associated with the Covid-19 pandemic and uncertainties in the market, home prices have taken a dip. April 2020 saw the prices increase by 0.6% in comparison to the previous year. But in May, these home prices displayed a 3% growth rate. This is a figure that was close to the pre-COVID numbers. In 2020, these are prices that will see a 4% overall growth. So unlike previous years, chances are there will be no rapid growth in this industry for a while.
- The majority of buyers are millennials.
Well, it looks like the majority of the millennials appreciate the need to have a good home. In 2019, millennials represented 38% of home buyers. In school, research paper writing is essential in the learning process. The transferable skills you gain help in future decisions. This is evident by how much millennials have stepped up in creating a secure future for themselves.
- Mortgage interest rates are low.
Even before the pandemic, the rates were still low. In over seven years, the 15 years fixed rate package reduced to 2.69%. Keep in mind that this is the cheapest kind of mortgage in the market. This goes to show how much influence our surroundings affect trends in the industry. Now experts anticipate that these interests will remain this way until the economy recovers. The good thing is these rates won’t be too low to affect the progress of the real estate industry. With homeowners refinancing their houses with low interests, the demand is still high.
- Community development trends are the future of the real estate.
Having understood this niche, co-working, and making use of commercial space has become the new norm. Collaborative efforts towards building integrated platforms, spaces, and services are typical for this generation. Many young people appreciate such provisions due to social interactions and sustainability. Organizations have acknowledged this aspect and have invested heavily in such projects. Community development initiatives are here to stay.
- Equity will not decrease in 2020
Even with the uncertainties in the market, equity will remain constant throughout 2020. Housing and Mortgage Market Review have conducted their research. The home prices will continue to improve for the next few years. So if you are a home seller, selling your house between now and 2024 will see you still make some great profits. Keep monitoring the changes in the market and make any required adjustments.