As the new year takes its first steps, the real estate business is closely analyzing 2019 to see what 2020 will bring. There were some pretty exciting developments last year, and they’ll definitely play a major role in the future. In fact, some trends, like those that SpendMeNot’s real estate market research noted, will be pivotal for anyone looking to sell this year.

So what will it take to turn the real estate market in your advantage as a property seller in 2020? Here’s a useful and to-the-point guide to tell you exactly that.

Prepare for Slow Growth of Home Prices

In line with the growth we’ve seen thus far, house prices should be increasing somewhat in the current year. This growth probably won’t be all that radical, measured at 2.8% by some estimations, but it will nevertheless impact the way you go about your job.

One consequence that you can look forward to is the fact that you’ll probably be making more of a profit. Though not an amazing rate, a bit shy of 3% is nothing to scoff at.

That said, you won’t be overjoyed when you hear that you probably won’t see as many offers as you could have in 2019. An increased price will unavoidably narrow down the amount of people that can afford to make an offer you’ll be satisfied with.

Overall, it’s a bit of a give-and-take situation where you need to take advantage of both the good and the bad. The best way to do that, in this case, would be to make your house stand out as much as you can. In the highly discriminating market we’re looking at right now, a property with more to offer will get a lot more attention from buyers.

Facts About Housing Data

  • 50% of buyers found their home on the internet
  • 5.34 million existing homes were sold in 2019
  • The US housing market was worth $33.3 trillion in 2018
  • Sales of existing homes will fall 1.8% from 2019
  • The cost of renting has gone up by 66%
  • 6% of younger millennials were first-time homebuyers

Cater to Today’s Main Buyers: MIllennials

Millennials (people born roughly between the 1980s and 2000s) currently represent the majority of home buyers. How large a majority? As many as 67% of all buyers come from this generation.

What does this mean for you? Well, it means that, if you want results, you will need to adjust the way you sell. Here are a few pointers to help you do that.

 

  • Highlight certain features that they’re on the lookout for. Garage storage, patio, laundry room, and hardwood front exteriors are among the popular home features for millennials, but there are plenty more, so don’t worry if your property doesn’t have those. Highlight the ones that it does have, though, and you’ll quickly see more interested parties.

  • Make sure that your online listings are high-quality. Practically everyone (especially millennials) relies on the internet to find whatever they need, and homes for sale are no exception. Therefore, anything you have about your property online should be updated and looking sharp – high-quality photos and a video recording of the place will get you a long way.

  • Emphasize qualities other than square footage. Nine times out of ten, given a choice between a large house and one that’s near good schools or has a good commute, millennials will choose the latter. As long as you make these perks a priority to emphasize, you’ll do great.

Expect Low Mortgage Interest Rates, but Don’t Count on Them

Last year, mortgage interest rates fell under 4% for common kinds of loans. For 2020, the trend will likely remain the same, and this rate shouldn’t go anywhere above 3.7%. That said, interest rates can fluctuate depending on economy shifts, so it isn’t a prophecy set in stone.

For you, a low interest rate will translate into more interest from people. It’s only logical, after all, since they will have to pay less overall in these conditions. But there’s little guarantee that the rate will stay as is, so be prepared for the opposite.

Should the interest rate rise, you’ll see plenty of prospects beginning to hesitate, so you’ll likely be in a bit of a bind if you’re pressed for time to sell that house of yours. It could theoretically swing either way, but the chances are that the rates will stick to their current estimates.