Top Real Estate Trends for 2020
Before you take the plunge into a new career, it's a good idea to research the market. After all, the last thing you want to do is enter a dying industry. If you've been considering a career in real estate, you're in luck! We are diving into the top real estate trends of 2020. On the other hand, if you're already a real estate agent, get a sneak peek below of what you can expect for next year.
Trend #1: More Affordable Home PricesArguably, the most substantial barrier between hopeful homeowners and their close date is the home purchase price. Luckily, as compared to the market jump of 2017 and 2018, 2020 isn't expected to see a spike in home prices. This lower entry point will allow lower-income and first-time homebuyers to take that big step in life and purchase a home. This is fantastic news for real estate agents looking to make a sale.
Trend #2: Increase in New Home PopularityAlthough fixer-uppers are undoubtedly great for investors who want to make a quick buck, buyers are increasingly interested in new homes. In fact, in 2020, experts are predicting an 8% increase in new home construction. As a realtor, your input and assistance with negotiations is invaluable—so make sure you're familiar with new development in your city.
Trend #3: Wave of Economic UncertaintyUnfortunately, waves of economic uncertainty have greatly affected the real estate market. However, for real estate agents, this has actually worked out well because when the economy is in question, people look to sell their homes. In a survey done by Value Insured, 83% of Americans said they believed it was an excellent time to sell their home. And this is good news for you because the commissions for selling a home are typically much higher than what you make when a client purchases a house.
Trend #4: More Homebuyers are MillennialsAs millennials age and start families of their own, they continue to dominate the real estate market as homebuyers—and this trend is not predicted to slow down at all. In fact, Realtor.com cites that in 2019, 45% of homebuyers were millennials. This is excellent news for realtors because millennials tend to look in popular cities and in middle-to upper-class neighborhoods, both of which provide ample opportunities for realtors.
Trend #5: Technology is KingAs we said in the section above, millennials are going to compose the majority of 2020's homebuyers. Because of that, realtors are going to have to spend more time where millennials are—online. Technology is definitely changing the real estate game. A few ways to get ahead in the millennial market include:
- Creating a personal real estate website
- Keeping your social media up to date
- Staying in touch with clients via emails as opposed to coffee meetings