Because of the pandemic caused by the coronavirus, 2020 real estate trends differ significantly from last year’s real estate outlook. The following are a few of the things that people who are buying or selling houses may notice this year.
Price Increases Slowed Down
A quick view of real estate trends shows that home prices are continuously increasing, but at a slower rate. In April 2020, home prices grew by only 0.6%. This is compared to a 4% growth during March. However, it went back up to 3% in May, which means that the rate of increase may be picking up again.
Days on the Market Increased in April
The longer your house is on the market, the more difficult it is to sell. It also adds a level of inconvenience since many homeowners would prefer to sell their houses immediately. Last April, typical sale time for homes was, on average, 63 days, which is four times slower than in April 2019.
This is probably because, in a pandemic, people are hesitant to take on the exposure risks of moving. Although, because of the current low interest rates, it may be advantageous to buy a house now, instead of waiting.
Low Mortgage Rates
Banks are offering extremely low mortgage and refinancing loans right now. This has the potential to positively affect the housing market and means that it’s a good time, financially, to buy. If you’re an interested buyer, now is an excellent time to lock in extremely low rates. A low mortgage rate can save you thousands of dollars, even hundreds of thousands of dollars, over the life of your mortgage. Similarly, if you currently own a home, now may be a good time to refinance and take advantage of these low rates.
Millennial Buyers & Real Estate Trends
Since millennials are slowly entering the workforce, they compromise 38% of the population buying real estate. This means that it may be advantageous to model your house and advertisements to the millennial age range. This may increase the chances of your house being sold more quickly, at a price that benefits both you and the buyer. Minimalistic, clean lines are generally favorite design elements of millennials. Vintage features and smart home appliances and fixtures may also be preferred millennial selling points.
Selling or Buying a House?
If you’re buying or selling a house, contact us. At Laura Wucher Real Estate Team, we provide expert service that you can count on during these trying times. Whether you are prepared to buy or sell, let our team guide you through the process. With years of experience and a stellar record of customer service, we can help you take the next step in your real estate journey. Contact us today at (925) 595-8047 for more information.