It's always important to keep up with real estate trends and changes. Find out five important real estate facts for 2020 here.
In real estate, the winds of change can turn the industry on its head in a quick moment.
One of the best ways to stay ahead in 2020 is by knowing the essential real estate facts. Your success as a home buyer, seller, or agent relies on your evolving knowledge.
These facts will help you make property decisions this year.
1 . Low Mortgage Rates
The trend of record low mortgage rates will continue into 2020.
Recently, interest rates were cut again with some economic experts predicting the Federal Reserve will need to drop all the way down to 0%.
These low (and potentially zero) mortgage rates make it a perfect time to buy or build your first home. Your payments will be barely higher than the principal and insurance plans.
As borrowing increases, the interest rates will also increase, so buy now.
2. New Starter Homes
The Great Recession of 2008 saw homebuilders put a freeze on developing new starter homes.
Population swells of the Millenial generation place them at the homebuying age now. While many of these people want to buy homes, there's no inventory to fit their needs.
Expect to see lots of starter communities go up in revitalized developments in urban areas and recovering suburbs.
If unemployment levels remain low, the upward trend of building new starter homes should continue.
3. Solutions For Affordable Housing
The low inventory of available homes is creating a crisis for the lower and middle classes looking to put roots down.
Homes that are available are usually too far out of their price range. Some homeowners are looking to downsize.
The fastest way to sell your home as-is might be the ticket to quick money to invest in a smaller home.
Expect private businesses and investors to help fill the vacuum of affordable housing for the working class.
4. Rental Rate Control
Several landlords have tried exploiting the housing shortage by raising the rates on their existing tenants. They know if someone can't afford the new rate, then someone else can.
Some states are enacting legislation to stop the predation of renters and control the rate increases.
Expect to see more states put together efforts to make sure people and families are not forced onto the street overnight from rate hikes.
5. The Market Is Not a Bubble and Won't Crash
Banks and lending institutions learned their hard lesson from the housing bubble crash of 2008. The vetting process and fiscal responsibilities of these organizations have stiffened.
The low unemployment, steady organic growth, and high spending by the American people are strong indicators that the housing market won't crash.
Watch how international trade relations with China progress to foresee any rapid changes in the interest rates and markets.
Know Your Real Estate Facts
Having a unique insight of real estate facts can make you a savvy investor, home buyer, or agent in any economic climate. When the trends change, you'll know ahead of time and be able to adapt to the new regulations or shifts.
Have a prosperous 2020 by knowing these facts for all your housing deals.
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