The beginning of a new decade brings fresh trends for the real estate market, impacting investors and homeowners alike. Regardless of which side of the real estate process you are on, it is crucial to remain knowledgeable about significant changes in the industry. By adhering to the following tips and trends, you are ensuring a prosperous real estate experience in 2020.
Low Mortgage Rates Will Persist
Combined with record-low unemployment and interest rates and a strong economy, continually low mortgage rates present wonderful news for homebuyers planning to finance. The Federal Reserve’s annual target inflation rate is two percent, which has not been consistently achieved for some time. Therefore, the Fed announced intentions to keep short-term rates low to boost economic activity. If you are a homebuyer, you will have more leverage when mitigating closing costs, which will remain at about two to five percent of the home.
Inventory Trends
As the majority of millennials grow into their careers and higher incomes, an increasing number of these individuals will be searching for their first homes, which will result in fewer listings on the market, especially in highly sought-after areas. However, as the market has recovered from the Great Recession, home builders have created and will continue to create a supply of starter homes to meet the new influx of demand. In 2020, expect to see bidding wars, low inventory in popular residential areas and an increased number of starter homes on the market.
Slowing Home Prices and Increasing Demand Concentration
Across the nation, the market will see a growing concentration of new jobs around city centers like Atlanta. An increase in population and demand will cause home prices to rise in these areas; however, prices will increase at a slower rate in 2020 than in years past. If you live in an area with high real estate costs and are considering a move, now is the time to sell your home to receive top dollar for your listing.
By following these 2020 real estate tips and trends, you will have an advantage over other buyers and sellers competing in the market. For help with your 2020 real estate endeavors, Atlanta Fine Homes Sotheby’s International Realty can ensure your success! Please call us today at 404.237.5000.