Top Trends in Real Estate In Industry
2019 was a very eventful year for the American housing market, particularly in Biloxi, with the median prices of homes going up to over $300,0000. It can be easy to wonder if this a trend that is going to continue in this new year, the aim of the article is to highlight 5 top trends that are sure to hit the real estate industry in 2020. It does not matter if you are interested in buying, selling or simply watching the market, this article will highlight trends to watch out for so you are not surprised.
Home prices are rising even if slowly
While home prices rose the previous year, they did grow at a much slower rate of 3.3% than the 5% rate in 2018. It appears that 2020 will be another year of slowing growth rate. What this means is that while you are definitely bound to see the prices of homes in your area rise, they are not going to grow as fast as they did in the years past.
What this means for those that are looking to sell their homes in Biloxi is that there is a chance for them to get a handsome profit. However, there is also a probability that the house might be difficult to sell. This is because the majority of purchasers are currently being valued out of the housing market, and that translates to a reduction in offers to sellers.
If you are interested in purchasing a home, then it is important to note that houses will be quite expensive. You have to fully acknowledge what your budget is and how much you are able to put down. Whatever you do, it is important that you stick to the budget you set. Do not be in a frantic rush to purchase a home that really does not make economic sense. Doing this can be detrimental to your financial future.
The real estate market is unlikely to crash
While most people might see the median growth price of real estate slowing down as an indication for the housing market to collapse, this is unlikely to happen. There are quite a number of factors that should be taken into account, with things such as interest rates remaining low. Economists are positive that the real estate market is bound to remain positive especially since people continue spending money and job opportunities arise.
Interest rates attached to mortgages are declining for the moment
Interest rates were on a decline last year, with the average rate dropping lower than 4% for basic loans. Financial experts believe that 2020 will see interest rates remain around 3.7% for 30 year mortgages. That being said, these interest rate forecasts are not guaranteed as there are outside factors that might change the direction of the economy.
If you are looking to sell your home in Biloxi, the interest rates could motivate buyers to purchase your home quicker than usual. However, in the event that interest rates begin to rise in the year, you should have it at the back of your mind that your house might remain on the list for a bit longer.
If you are a buyer looking to purchase a home, then you should know that interest rates are in your favour, especially when you select a traditional 15 year fixed interest rate mortgage. This is great if you are not paying cash when you do this you will have an idea how much your payments are going to be over the course of the loan.
Equity is not going to decrease in the year
At a time when there is a reduced risk for the real estate industry, expert reviews have stated that home prices are bound to increase for quite a number of years. With increasing equity, homeowners are able to make use of the increased equity their homes provide. If they are looking to sell, it can be a smart decision to wait for as long as you can before selling.
Millennials still represent the large share of homebuyers
This is a surprising trend that most people won’t see coming. Millennials actually make up 37% of the homebuyers which made them the largest share in 2019. Millennials born between 1980 to 1998 have been buying up homes last year and that trend is set to continue into the new year.
If you are looking to sell your home, you have to understand what and who your buyer is. To be able to sell your home, you have to know how to relate to them.
You will have to upgrade your listing. What this means is that you have to place your listing online. If you are trying to attract millennials, it does not make sense to place your listing in the Biloxi dailies. It is imperative that you capitalise on getting quality pictures, and even videos to ensure people are able to get a digital home tour.
While most people believe that the size of a home matters, millennials are more focused on highlights. Millennials tend to be more concerned with the costs of commuting, as well as how close the home is to their general congregating areas. Millennials are less unlikely to compromise on the quality of neighbourhoods and schools when searching for a home. It is important that you concentrate on the benefits that your house offers, such as its location and community perks, rather than spending time talking about how large it is.
It does not matter what neighbourhood your house is located in, buyers will still be interested
Considering the prices of homes have seen rapid growth in recent years, and buyers might not be as picky as in previous years. There are even buyers that would consider houses that are located in the areas that are not quite suitable for them. This would mean neighbourhoods that aren’t quite central, far from school districts, or not located near a major city like Biloxi.