2020 has been a bumpy year, but the real estate and construction sectors are still thriving in a seller’s market. Here’s all the latest trends to be on the lookout for financially in 2020.
Mortgage Rates Are At A Record Low
If you’re interested in buying a home, then you’re in luck! It’s never been a better time to secure a mortgage at record low interest rates. This means that this is the most opportune time to settle down and grow your family. It’s also one of the best times to invest, and nothing is as safe as investing in real estate!
If you can lock in your rate now, you’ll be ready to buy in case interest rates go back up. Many investors and economists believe that rates will stay as low as long as the economy is trying to recover. Sellers should know that these rates will incentivize buyers to look at their home. And if rates go up, buyers may hold off a little longer.
We’re Still in a Seller’s Market
The trend continues as prices steadily increase in property value. The average median price for a home is currently around the $300,000 mark. Even with the coronavirus, prices are slowly creeping back up at interesting rates.
If you’re a seller in this market, you may be in luck for some profits on your home. The things to be aware of is competition between buyers and the offer they place for your house. Because of the coronavirus, you may find less offers being placed…so don’t settle for any offer.
If you’re a buyer, you need to be careful and not stretch yourself too thin. Saving up a good down payment is crucial in this housing market. Don’t commit to one neighborhood, house, or area. Expand your expectations and keep looking for that ‘deal’ of a house. It requires some extra work, but it’ll pay off. It might also be wise to wait a couple months and see what happens to the economy after covid-19 has passed, if you can afford to wait.
What’s the Trend for the Type of Buyer in This Market?
So who is buying homes? The current generation looking to settle and nest are millennials. This trend has been continuing for the last couple of years and remained the majority of buyers in the real estate industry. What does this mean for you?
If you’re a seller, knowing what millennials are like can increase your chances of selling your home. This means highlighting different features and possibly making small improvements to the home. So if you’re not savvy with construction, look into different construction suppliers and contractors to take care of your home’s needs.
Commercial Property Value Will Decrease
If you’re looking into investing in commercial property or are wondering if it’s a good time to invest in an office space, think again.
With the coronavirus impacting many businesses, a lot of companies have switched to remote work. The need for offices and corporate buildings is drastically decreasing. Over the next few months we will likely see a trend towards shared office spaces, coffee shops, etc.
If you’re in certain industries you’ll be safe though. Hospital buildings, neuropathy treatment centers, government buildings, and other traditional offices are still in high demand and growing.
Isaiah Ram is a digital marketer from Atlanta, Georgia who exists to unleash potential in people and in businesses. Isaiah works with multiple chiropractic offices across the nation, and in his free time writes music.
Connect with him today by emailing him here.
To read more on topics like this, check out the House category