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 Prices
Arguably, 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 Popularity
Although 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 Uncertainty
Unfortunately, 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 Millennials
As 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 King
As 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
Depending on your familiarity with those things, there could be a learning curve. Still, the increased use of technology provides the flexibility that other careers do not.
Trend #6: Homebuyers are Moving to the Suburbs
It’s no surprise that housing prices are on the rise—especially in larger and more populated cities. So, to afford a home, many homebuyers are moving to the suburbs.
This trend isn’t exclusive to homes either; companies are also moving to second-tier cities so they can afford to expand. As a real estate agent (residential or commercial), you should expect to spend a lot of time in these second-tier cities. Also, you should consider specializing in that area’s real estate market to maximize your revenue.
Trend #7: Increase in Luxury Home Listings
Good news for real estate agents looking to make higher commissions—luxury home listings are expected to increase! Not only that but from 2018-2019 (with the trend expected to continue), there was almost a 2% decrease in luxury home prices. This combination makes it the perfect market for buyers looking for a more affordable luxury home as they will have plenty to choose from.
Get the Real Estate Training Courses You Need
As you can see, real estate is moving in the right direction, so it’s a great time to get into the industry. Before you sign up for your license exam, make sure you’ve taken our Real Estate Pre-License Course to ensure you can easily ace the state licensing exam. If you’re already a real estate agent, take advantage of our continuing education courses to stay up-to-date on the latest real estate trends. Sign up today!