2020 Real Estate Predictions You Need To Know
What can home buyers and sellers expect as they look ahead to the 2020 real estate market trends? Great question! We're highlighting some of the biggest national real estate trends and predictions for the year ahead from the experts—and what it all means for you as a buyer or seller. Sun-Surf Realty also offers assistance with the local Emerald Isle, NC real estate market and where you can find help if you're buying or selling your home on the Crystal Coast of North Carolina. (Hint, that's our specialty!) Keep reading for everything you need to know about the 2020 market and let us know how we can help you this year.
1. EVEN MORE MILLENNIAL BUYERS
Millennial home buyers have held the majority these past few years and that trend continues into 2020 with many from this age group opting out of higher rent in exchange for home ownership. In a Chase Home Lending study, 70% of Millennials surveyed said they would be willing to cut back on activities like spa trips, shopping and going to the movies to save money for a home purchase. This generation is willing to make lifestyle changes in order to buy a home. Millennials also know their way around the internet and do tons of research this way, so if you're listing a home for sale, be sure your online marketing is spot on if you want to attract this group of buyers.
2. BABY BOOMERS ARE SELLING
Many of the Baby Boomer generation have owned their home for years and years, but this group is now looking to lighten their home-ownership load. Zillow recently published a study that found Baby Boomers are preparing to sell approximately 27% of America’s homes between now and 2040. Monikered as the Silver Tsunami, many of these homeowners will ultimately be seeking newer, low-maintenance homes with fewer stairs to climb and smaller yards to maintain. That translates into more homes flooding the market (likely older homes with one owner) in the years ahead. This trend should help the market inventory to rise above its previous years' numbers and give potential buyers more options, while giving the housing inventory pipeline more flow.
3. NEW CONSTRUCTION IS BOOMING
Due to the shortage of existing homes for sale, potential buyers are increasingly considering new construction properties. At the same time, in December 2019 the National Association of Home Builders reported that home builder confidence reached the highest level in 20 years. Mortgage data suggests the same, as mortgage applications to purchase newly built homes were up 27% annually in November 2019, according to the Mortgage Bankers Association. A similar forecast comes from Fannie Mae’s Economic and Strategic Research Group, which predicts builders will expand production by 10% in 2020—and this trend is unlikely to slow after 2020. The forecast for 2021 shows more than 1 million newly built single-family homes nationwide, which is a high that hasn't been seen in the last few years.
4. HOME PRICES SLOWLY ON THE RISE
Home prices are on the rise but the growth rate is slow. The S&P CoreLogic Case-Shiller Home Price Indices, which track U.S. residential real estate prices, noted a year-over-year increase of 3.3% as of October 2019 and suggested a similar trajectory for 2020. According to Craig Lazerra, managing director and global head of index investment strategy at S&P Dow Jones, “If people were waiting to see if house prices would actually decline... that’s probably not going to happen, at least given the current economic backdrop.”
5. STABLE REAL ESTATE MARKET FOR 2020
Overall, home buyers and sellers can expect the housing market to remain stable in 2020. This sentiment appears to be validated by economists, lenders and builders alike. A possible wild card could be the 2020 presidential election. But even in a big election year, and no matter the outcome, with unemployment at record lows and consumer sentiment near all-time highs, it is unlikely the housing market will suffer a downturn in 2020. Only time will tell for sure, but home buyers and sellers can expect favorable conditions going forward this year, which is promising news.
6. LOCAL MARKET EXPERTS MATTER
So what do all of these national real estate trends mean for your local market and area real estate? That's a great question. Consulting with experts in the local real estate market is always a wise decision. They know the local market conditions better than anyone because they are working in it every day. Save yourself a lot of time, stress, and hours of research by enlisting the help of area real estate experts who are already up-to-date on all those things. Home buying and selling are major life decisions that are not best made alone. You cannot put a price on sound real estate advice and planning.
7. EMERALD ISLE, NC REAL ESTATE INFO
If you need help selling your Emerald Isle, North Carolina home or you're a home buyer looking to buy a beach home, retirement property, or vacation home—Sun-Surf Realty is here to help you navigate the local market. We know the Emerald Isle market, as well as the greater Crystal Coast of North Carolina region. Our knowledgable and professional brokers are here for you. Contact us today and let's get started. You can also take a peek at what's currently on the market right now by viewing Sun-Surf Realty's MLS listings.
ARE YOU BUYING OR SELLING A HOME IN 2020?
We hope you found this information helpful!