Is the Real Estate Market Changing? 


is the real estate market changing?

You’ve probably thought about investing in real estate. But with the current situation of Covid-19, you are thinking otherwise. So you landed on this post to know whether or not the real estate market is changing. 

Honestly, it’s a good bet to be sure before you wagger your money into a business you’ve probably never tried before. This post will walk you through some real estate marketing trends and what they mean to both sellers and buyers. 

That way, you will know whether or not the real estate market is changing and what you need to do differently to survive these uncertain times. So whether you are thinking of getting or selling a home, this post will provide much value. Ready? Let’s dive in. 

What Should I Expect in the Remainder of 2020? 

What happens in the real estate market for the remainder of 2020 will depend on how long the World Health Organization measures will affect. 

According to Fannie Mae, home sales will reduce by up to 15 percent for the remainder of 2020, compared to 2019. Even more, according to REALTOR.com, the number of newly listed properties has gone down, and home rates have significantly surged. 

Financially unstable homeowners will most likely put up their homes for sales at higher prices, and people who have managed to work from home will take advantage.  

Real Estate Marketing Trends in 2020

1. Home Prices Will Continue to Rising 

Home prices have been growing throughout the years, but with the emergence of this pandemic, the real estate market saw a decline from 4 percent to 0.6 percent by April 2020

By the 3rd week of May, home prices had gone up from 0.6 percent to 3 percent. This is a clear sign that home prices could regain momentum in the remainder of 2020. 

According to Lawrence Yun, the National Association of Realtors Chief Economist, house prices will get back to 4 percent growth like the previous year. However, he also notes that you don’t need to be so excited about the growth as in the past cases. 

What It Means to Buyers

If you have decided to buy a home during this pandemic, you need to know exactly how much you will have to pay for your desired home. Leverage a free mortgage calculator to know how much you will have to stretch to acquire your desired home. 

Don’t overstretch your budget, and don’t rush to buy a home at this time if it doesn’t make sense. Just because your competitors are getting good homes doesn’t mean you should screw up your finances. It’s an uncertain time, and you need to be extra careful with your moolah. 

If you cannot sustain a 10 to 20 percent conventional loan, you shouldn’t risk buying a home at this time. Instead, keep saving, sacrifice some of your wants, and expand your search to get the best homes at the right prices. 

What It Means to Sellers 

It’s more likely that there are huge profits to come your way. However, you must also know that many buyers are being locked out because of the huge prices being set for them. So there are chances that your home will get fewer offers leading to slower sales. 

Because of the fewer offers, you should plan on how you will make your home stand out from the crowd. Get a real estate agent and let them help you broker the best deals for your home during this pandemic. 

Finally, be patient and wait for the best offers. Sure, offers coming will be a little slow, but you have to keep waiting for the right offers. Research the market and see what people are charging, then compare those rates with yours and see if they could make sense. 

2. Mortgage Interest Rates Will Be Low 

Mortgage interest rates have significantly been dropping, even before the Covid-19 pandemic. According to a report, the average interest rate for a fifteen-year fixed-rate loan fell to a mere 2.69 percent – the lowest we have ever seen in the past seven years. 

Economists argue that mortgage interest rates will still surge until the economy is ready to go back to normalcy. However, you need to understand that mortgage interest rates won’t go that low because more people will still be looking for mortgages to finance their real estate investment. 

What It Means to Sellers 

If the interest rates continue to go down, your home will most likely receive more offers from potential buyers. On the contrary, your home could receive meager offers when mortgage interest rates start increasing. That said, it would help to get a real estate agent to give you some advice and help you price your home. 

What It Means to Buyers 

It’s a no brainer that the interest rates will be super low during these challenging times. Unless you can buy a home with cash, go for a fifteen-year conventional loan to help you fund your purchase. Additionally, be super careful not to fall into the traps of mortgages like VA, FHA, among other rip-off mortgages. 

3. There are More Millennial Buyers

Quite surprising, right? One of the hottest real estate trends now is who is buying homes in 2020. Millennials took the lead with a 38 percent home buying record in 2019. 

But who are the millennials? Millennials are people born between the years 1980 and 1998. They are social media savvies, and they can’t always wait to post their new home on Instagram. 

What It Means to Sellers 

As a seller, you must make sure that you know your ideal buyer. Millennials are social media savvies and spend most of their time on social media platforms. Below are quick tips to help sell more homes to your ideal buyers (millennials): 

  • First, you need to up your online listing. Ninety-eight percent of millennials use the internet, and up to 78 percent purchase using their mobile devices. So invest in internet marketing through high-quality images and videos. 
  • Instead of selling your home’s size, try to convince the millennials about your home location. Millennials would prefer a home that’s near their school. Millennials have emphasized that they can’t compromise on school. 
  • Finally, ensure that you know the features that millennials love. According to a survey, 86 percent of millennials prefer homes with a laundry room, 81 for patio, 80 percent for garage storage, and 79 percent love homes with walk-in pantry. 

What It Means to Buyers 

If you are looking for a home in 2020, there are a few things you have to note down before you go out into the market. Below are some tips to help you secure the best home deal: 

  • Draft a list of priorities and stick to them. Knowing what you want will help you avoid falling into the traps of bad home deals that are everywhere. Finally, compare rates from different buyers to get a rough idea of what a home cost. 
  • Sometimes, the best way to stand out as a buyer is to send the best offer that sellers can’t resist. And the best way to do that is to send a personal story along with your offer. According to John and Abby, sending an offer with a personal story helped them secure a good home deal in less than 24 hours. 
  • Finally, the best way to get a good home deal is to hire a real estate agent to get the deals through on your behalf. According to a report, 92 percent of millennials hired real estate agents to help them buy a home in 2019. 

Bottom Line 

The real estate market might have been affected by the Covid-19 pandemic, but things will soon come back to normal. As you can see, both sellers and buyers can still find the best deals by taking note of the tips provided in this post. If you must find a home during this pandemic, make sure you’re within your budget – don’t overstretch.

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