Where does the real estate market stand for 2020?

This year big changes are expected in the real estate market. Some of these changes will be better for buyers while others will spark competition, possibly creating bidding wars, for the same properties. How will the recent strike on Iran affect the property market? We will look at what to expect in 2020 and trends the experts feel will emerge below.

Home Buying Rates

The airstrike in Iran is solidifying low rates in the housing market. Many investors are deciding to switch from real estate investment trusts, or REITs, and real estate investment groups to traditional stocks and bonds. After the assassination of one of Iran’s top military officials, investors worry about housing loans for military members that could be called into action and others who might move frequently.

Since Fannie Mae and Freddie Mac are predicting even lower mortgage rates at 3.65 and 3.625 percent, first-time buyers have the opportunity to cash in on a rate they can easily afford. The sooner the better, because Forbes predicts housing prices will go up as the year continues. The first half of 2020 could be the best time to apply for a new mortgage.

Who Is Buying Up New Homes

Realtors are getting better at working with younger generations. Millennials are the age group looking for houses to buy across the U.S. The problem is many baby boomers are living longer and holding onto lifelong properties. The younger generation is helping grandchildren get on their feet with large properties and homes big enough for two or three generations to live in comfortably. The younger age group wants to purchase a first or second home, but the availability is not there for their price range.

What types of homes are expected to sell in 2020?

New construction

Growth in building new homes will not offer enough help to inventory rates fast enough say expert publications like Forbes. Another problem is that the new construction is mainly in the higher property brackets. Since millennials are seeking affordable housing options at entry prices, the new properties are not accessible for these groups. Realtor says the numbers for new construction are higher than last year at this time. However, the addition of new construction homes is not going to help the majority of the group looking for a house to buy.

Inventory levels

With the construction home types and the number of people looking to buy homes, inventory levels for people seeking an entry-level property are shrinking. This is especially the case where large technology companies are building out new facilities. As an example, we have seen a tremendous uptic in the interest in condos for sale in Arlington because of Amazon’s new presence there has brought tremendous demand for housing.

Other growing tech hub cities such as Boston and New Orleans are attracting millennials too. We expect Boston’s real estate market to continue to drive out many affordable housing options.

With inventory expected to shrink in 2020, especially in the more affordable areas of the real estate market, it may become harder for first time homebuyers to get in, even with the more attractive mortgage options. This means a lot of unhappy people who will go through bidding wars only to find that someone else will get the property they love. Then, these groups will face going through the process all over again.

Some people may find they have to put in multiple offers, look for homes before they hit the market, or find a way to increase their budget to get into a home in the neighborhood they want. Another problem is the increase in minimum wage across the states. People can afford a house for the first time in many years, so there are more people looking for homes driving the available property numbers even lower.

Which area will interest buyers the most

Since many millennials are going to see dwindling inventory rates, these groups will look towards purchasing in the suburbs. These areas offer the best of both worlds. The suburbs have quick access to everything the city can provide while giving new buyers a friendly neighborhood atmosphere with room for the family to play at local parks, go for jogs on walking trails, and stay away from the smog in urban areas.

How interest rates effect real estate markets — How will the low interest rates affect the real estate market in 2020?

Real estate will see digital trends grow

Online mortgage applications are just the start of the newest trends 2020 will see on the web. Mortgage brokers will scramble to add income verification tools and electronic signature software to online portals. Millennials are savvy with this technology, so lenders will have to up their game to stay competitive. If they want to get the business they need to thrive, then upgrading to digital real estate technologies and sites is a must. Many real estate brokers are looking at different, disruptive technology and business models which include packaging the home loan. Although the one-stop-shop idea for real estate is not new, we are now seeing the technology to implement it.

Buyer trends will affect the property market just as much as global happenings like the Iran strike. While mortgage rates are expected to continue to stay low, the inventory levels available in many popular cities like New Orleans, Los Angeles, Boston, Arlington VA, and Miami will be lower than usual. Landlords and sellers will find that quantity is not always quality. Some buyers may be extending themselves too far in order to compete, so checking references and debt-to-income ratios will be extremely important for people selling property this year.

Real Estate Firms Get More Technologically Savvy

With the explosion of home buying and selling taking place on the internet, we expect technology to play even a larger role in the real estate transaction. we expect to see successful real estate companies focusing on their digital marketing presence. Data driven marketing coupled with larger companies taking their eye off the ball, we expect big changes in 2020. With the pricing for search engine optimization coming down, expect to see smaller companies leveraging digital marketing too. Up until now, huge venture capital funded real estate websites have dominated the landscape. With sites like Zillow changing direction; expanding to the iBuyer market, we expect the larger, more successful real estate brokers to start picking away at real estate search terms.

2020 Will Be a Shift from the Past

With all of the changes barrelling at us at full speed, spearheading by technology, low interest rates and new real estate business models, 2020 is expected to go down as a pivotal change in the way real estate transactions take place with new winners and losers.

Why is My Home Not Selling?

September 30, 2019

Jay Brent

Real Estate Tips No Comments

If I Am In a Seller’s Market, Why is My Home Not Selling?

When housing is plentiful and buyers are scarce, it is easy to understand why your home is not selling quickly. But when housing stocks are in short supply and buyers are everywhere, a stalled sale is much harder to take. If you are selling your home in a great market and still seeing a dearth of buyers, it may be time to rethink your strategy.

If you want your home to sell, you need to look at everything you are doing, from how your real estate agent is marketing the property to how the house is priced to the types of buyers you are trying to attract. Just as importantly, you need to look for common mistakes that could be scuttling the sale.

Here are seven real estate marketing blunders that could be holding back the sale.

- Targeted marketing that is missing the target — Not every home is suitable for every home buyer and targeted marketing can backfire badly. Trying to attract first-time buyers to a costly home or marketing a starter home to wealthy buyers are just two examples of targeted strategies that miss the mark. Good real estate marketing today is data driven – make sure that the data lines up.
- Pricing that is outside the normal range — When pricing your home for a quick sale, you need to look at a number of factors, from the nature of the neighbourhood and the quality of the local schools to the square footage and floor plan. What is the current real estate market like in your area and is your home priced higher than similar properties, you could have trouble sealing the deal even in a positive market environment. You will want to check the real estate data to insure you are pricing the home within the correct parameters. The pricing of the home is the single most important aspect of the sales process.
- Outdated appliances – The last thing buyers want to do is invest in new appliances and lose access to the kitchen for weeks on end. If your appliances are showing their age, they could also be showing would-be buyers the door. This is especially the case with condos as many people purchase a condo because they are looking for a maintenance free lifestyle.
- An experienced agent – Not all real estate agents are created equal, and not all of them are equally skilled. Just because someone has passed real estate school, doesn’t mean they have the correct skillset to sell your home. If your agent is inexperienced, overworked or just not up to the job, your home could linger on the market for months while he or she learns the ropes. If your home is still on the market while neighbouring properties are selling quickly, it may be time to look for another agent.
- Lingering clutter – Hopefully you cleared out the clutter when you put your home on the market as it is part of preparing your home for sale, but over time some of that clutter may have crept back. This is a real danger if you are living in your home while trying to sell it, so pay attention to your surroundings and try to see the property through the eyes of a buyer.

High Interest Rates Effect on the Real Estate Market — Experts believe that in 2019 the data indicators show that interest rates on mortgage loans will continue to rise. The interest rates steadily rose from mid-2018 until recently and experts believe that they will continue to rise. When the interest rates increase on mortgage loans it can dramatically affect the market for both people looking to buy a home and people looking to sell a home. If you are considering doing either in the near future you should find out what the high-interest rates can affect your experience.

Neglected landscaping – If the bushes in your front yard are overgrown or dying, buyers may wonder what is lurking inside the home. Even if you are scrupulous about upkeep inside your home, neglected landscaping sends a bad message – and it could be scaring buyers away. So grab your hedge clippers, fire up the lawn mower and give your curb appeal some love.
Evidence of pets – Even if your home is spotless and there is nary and odour, the mere presence of a litter box or kibble bowl could turn some buyers off. Those pet-averse home shoppers may picture sodden carpets and other hidden damage, and those assumptions could sabotage the sale. So the next time you schedule an open house or private showing, make arrangements for a friend or neighbour to pet sit – and send the litter box and food bowls with them.

Trying to sell your home can be a frustrating experience in the best of times. Most homeowners have a significant portion of their wealth tied up in their homes, and unlocking that value when shoppers are not in a buying mood is difficult to bear.

The situation becomes even worse when you keep hearing it is a seller’s market. In that positive environment, you start to wonder what is wrong with your home, or what you are doing to send would-be buyers fleeing. If you recognize any of the deficiencies listed above, a simple adjustment could be all that is needed to turn that For Sale sign into a Sold sign!

High Interest Rates Affect the Real Estate Market in Very Specific Ways

July 20, 2019

Jay Brent

Real Estate Tips Statistics No Comments

Experts believe that in 2019 the data indicators show that interest rates on mortgage loans will continue to rise. The interest rates steadily rose from mid-2018 until recently and experts believe that they will continue to rise. When the interest rates increase on mortgage loans it can dramatically affect the market for both people looking to buy a home and people looking to sell a home. If you are considering doing either in the near future you should find out what the high-interest rates can affect your experience.

Home Buyers

Potential home buyers may notice that with rising interest rates come higher mortgage payments. When interest rates increase potential home buyers often get preapproved for a lower amount than they would if the interest rates were lower. This is because the interest rate will increase the monthly payment amount. For example, a buyer may have been preapproved for a home for 200,000 dollars when the interest rates were around 3% and today when the interest rates are around 5% or more the same buyer may only be preapproved for a home that is 175,000 dollars.

When the amount of home a potential home buyer can afford drops they have fewer potential homes for sale that they can see. This can make the market hot in lower-priced homes, but dramatically reduce the amount of interest in higher priced homes. With more people looking at lower-priced homes, potential homebuyers may find a lot of competition in the houses they are looking at. The supply of these homes is typically limited and the demand for these homes increases. Home buyers will likely have to make competitive offers and limit the contingencies they place on their offers.

Home Sellers

People looking to sell a home when the interest rate is high may find that they need to lower the listing price of their home in order to attract a larger number of buyers. Listing a home for sale too high can eliminate a large number of potential home buyers who are not pre-approved for a high amount. When interest rates on mortgage loans are high, home buyers often find themselves having to list their home for less than they wanted to in order to get an offer.

If you are interested in selling your home you should consult a financial counselor or a Realtor to determine the best time to sell your home and to make the largest profit from it. They may recommend that you list your home before interest rates spike even higher or they may recommend that you wait to sell your home to see what the market does. If you are planning to sell your home in the near future you need to consider interest rates, but more importantly, you need to consider the homes that are already on the market and if there is room for more competition.

Strong Economy

While interest rates on mortgage loans are rising and affecting the real estate market dramatically there is some good news. Interest rates rise when the economy is strong. The lower the unemployment rates and the stronger the economy, the higher the interest rates will go. Therefore, even if you may be paying a little more on your monthly payment or getting a lower asking price when you are selling your home, you can rest easy knowing that the real estate market may actually get stronger since more people are working and saving up to afford a home.

Interest rates can affect the market drastically, but when interest rates rise there are more people looking to buy. Whether people are looking to save up more money for a down payment before they purchase a home to reduce their monthly payment or they are going to buy a home for less there will always be people looking to buy homes. Pricing your home right, finding the best Realtor to list your home, and listing your home when the supply is low can help you get the most for your home regardless of how the market goes.

State of Real Estate in the U.S. Market for 2020