2020 Local Housing Trends

January 15, 2020

The economic climate directly impacts the real estate industry. This is because employability, manufacturing activity, and the prices of goods culminate into either turning the industry in a sluggish mode or either in a booming mode. A significant proportion of people’s wealth is invested in this industry, as it promises appreciation of value, steady cash flow, and reduces their overall tax amount, due to the presence of tax deductibles.

Trend 1: Home Prices Are Witnessing a Gradual Rise in Price

Looking at home prices from a maximized lens allows us to gauge how prices rose at a slower rate in 2019 (3.3%) than in 2018 (5%). It is estimated and forecasted to continue at the same pace this year also, as real estate experts predict a mere 2.8% rise in 2020. Home sellers won’t be seeing or experiencing the heightened growth in the price they’ve been enjoying in the past; however, the prices will remain at a steady high.

This environment is perfect for home sellers, as they can look to make a profit on their property by simply making their property stand out and garner the attention of prospective buyers.

Trend 2: Millennials Are Still Leading the Race for Buying Property

Anyone born between 1981-1996 is considered a millennial. Due to growing up in the social media age, most of them never shy away from posting images of their new homes on their social feel, and in doing so, help experts to pick out how most of the property buyers are millennials. Last year, millennials took the lead in buying property (37%) and are more than likely to take pole position this year also.

However, real estate gurus have to be aware of millennials, as they have a unique way of researching and choosing their property options. Prior to physically visiting the property, they prefer taking a digital tour, prefer leafing through the benefits the location has for offering, and tend to look for distinct features, such as a patio, a laundry room, or a walk-in pantry.

To add on, the gradual decline of mortgage interest rates contribute in fueling a conducive environment for buying property, leading to more revenue streams for the real-estate landscape.

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