2020 hasn’t exactly been easy for the real estate industry. With all of this on your mind, you may feel overwhelmed entering the real estate industry as a newcomer.
But here’s the good news: median home prices have gone up to $320,000! Still, it’s always good to play safe and do your research before diving headfirst into a new career. Are you wondering if the increasing rate will keep going up?
Well, you landed on the right article! No matter your industry plans, here are the top five real estate trends you need to keep in your mind!
Home Prices Are Still Shooting Up
In April 2020, home prices grew by a mere 0.6% compared to last year’s 4% in March. But in May, the home prices reached back to 3%! This means home prices are still increasing.
If you’re someone who’s planning to sell their house, you might just be in luck! All you have to do is keep an eye open for the competition around you. Make sure your house really captivates the right buyers.
Low Mortgage Interest Rates
Even before the pandemic attacked the world, lately, mortgage interest rates have been going down. As a matter of fact, the average interest rate for your ‘conventional 15 years fixed-rate mortgage’ dropped to 2.69% back in May!
And we’re pretty sure they will keep going down until the economy is back to its original state. But this is great for sellers since buyers will be more motivated to buy your home now more than ever.
Make sure you plan ahead of time and don’t have to deal with any troubles in case of mortgage interest rates going up again.
Millennial Home Buyers Are The Majority +
It’s no secret: who enters the market is significant as well. It’s essential to know your buyers and millennials were the leading group of home buyer’s the previous year.
So, what do you do if your clients are millennials? Well, millennials are internet savvy, so the first thing you should do is upgrade your online listing. Research shows how about 78% of millennials found the house they bought online!
So, highlight the perks of buying your house and know what your customers are looking for!
Gen-Z Are Entering The Market
While it’s true, Millennials were the largest group and that millions of Americans are entering their 60’s and 70’s. It’s also true that Generation Z is walking into the industry as well.
All in all, this means the industry might take a huge turn. Senior houses mean smaller, comfier, and super affordable houses. And just like Millennials, Gen Z is drowning in student debt, which means they’ll also be looking for smaller and affordable homes.
The Suburb Returns
If you’ve checked the census lately, you might have noticed a new trend is emerging. City population growth has gone down, and suburban growth has gone up. This is also a possible reason for the Great Recession.
Since Millennials are the most purchasing new houses there, suburbia is growing because of them. Combining their affordable houses with their city-like amenities brings us to what people call ‘hipsturbia.’ Basically, these are ‘cooler suburban communities’ trending pretty vastly now!