Are you keeping an eye on the real estate market? If purchasing or selling a home is in your future, you may want to pay attention to real estate trends. There are changes occurring that will directly impact the housing market in 2020.
It's been a little over ten years since the 2008 financial crisis that had a direct impact on housing. The first indicators were changes occurring in the real estate market. There were a lot of lessons learned and as we move forward economists can better assess where we're headed.
There are multiple trends in real estate happening now that will help forecast what's on the horizon for homebuyers. It is an interesting setting with a diverse cast of players. The question being asked is whether it is a good time to buy.
If so, where should people be looking for the best opportunities? Keep reading for 12 real estate trends that are taking over in 2020.
1. The Most Vital Real Estate Trends Center on Affordable Housing
Affordable housing has to be at the forefront of 2020 real estate trends. Income is not keeping up with housing costs. Whether renting or buying, people are spending a large portion of their income on housing.
As people struggle to pay rent, some are moving home to live with their parents. Others are renting rooms in someone's home or coming up with other creative living solutions.
The cost of housing is playing a part in the slowdown of home sales.
2. The Future of Housing is in the Hands of Millennials
The millennial homeowner market is a top real estate trend. For a while, millennials were content living at home with their parents or being roommates with multiple people. As they get married and start families they realize the value of homeownership.
With their growth come new ideas of what the community looks like. Millennials are learning how serious the affordable housing issue is. As some move from urban areas that had amenities within walking distance, they are changing the game for developers.
Millennial workers are driving the remote worker trend. To get affordable housing they are moving outside of the city boundaries. Planned communities geared towards them have everything they need within a short distance.
You can expect to find bike trails, recreation centers, and both shopping and entertainment complexes within a short drive.
3. Baby Boomers are Living Longer
Baby boomers are living longer, and their home choices are bringing changes to the real estate market. We hear the term planned communities when we talk about what's trending in real estate.
Planned communities for baby boomers differ from those designed to attract millennials. The main difference is their life balance needs and desires.
Older adults are looking to downsize. Instead of large homes with multiple bedrooms and baths, plus a pool, you're more likely to see one-bedroom villas.
Another difference is the proximity of shopping centers. Baby boomers want shopping, medical facilities, and dining options to be a part of their communities. This reduces the need for cars because they can walk or drive a golf cart where they need to go.
4. Planned Communities Continue to Grow
As we see above, planned communities are big. For investors, the goal is to know what trendsetting real estate opportunities are available. Giving buyers what they desire is how they will make the most money.
Planned communities have become so pivotal that many turn into their own cities. In some ways, this trend takes us back to the small-town feel, but with much new advancement.
5. Urban Areas are Trending
If you've heard the tagline "get downtown" it may mean more than having a good time on the weekends. Cities are turning their downtown real estate into work, live, play meccas.
Pricey condominiums and shoebox apartments are rising at a record pace as urban cities try to revitalize dull and dead downtown areas. The 2020 real estate trends will continue to see growth in these areas as people are heading downtown.
The urban lifestyle is perfect for singles and couples with no children.
6. Housing Prices are Leveling
As buyers are priced out of the housing market, we can expect to see the rise of housing prices tapering off. It is no surprise a once-hot seller's market is turning cold.
However, it doesn't mean we're moving into a buyer's market. Home prices are remaining steady, we just aren't seeing the same increase rates from a few years ago.
Buyer's either can't afford the price tags, or they are paying attention to future financial forecasts. If house prices begin to show significant drops, the hope is potential buyers will take advantage. Whether they will be potential homeowners or investors will tell us where the market is heading.
7. Smart Homes are On the Rise
Smart homes are sure to be one of the 2020 real estate trends. Artificial Intelligence (AI) technology is a trend within itself. People are becoming more dependent on devices designed to make our lives easier.
Home monitoring services from security cameras to operating lights and devices, while the homeowner is away, are trending in real estate. AI devices like Alexa are a mainstay. Refrigerators and garbage cans that create grocery lists are must-haves.
These are just a few of the technological advances people will continue to demand when building new homes.
8. Interest Rates are Inching Up
Interest rates are slowly moving higher. This move may make buying a home sooner rather than later a better option.
Homebuyers must weigh the pros and cons but interest rates will command the attention of financial analysts. A buying spree of concerned consumers could give the markets a much-needed boost in the housing sector.
Expect to see interest rates as a 2020 real estate trend to watch.
9. Digital Technology is Making Home Shopping Easier
Digital technology is making home shopping easier for the buyer and seller. By incorporating 360° real estate tours and virtual home staging, potential buyers can view homes from the comfort of their homes.
These visualizations require a professional photographer skilled in capturing the home and property via images, digital scans and video. The homeowner can try to do it themselves but may not get the full effect. Professionals have the editing skills and knowledge to make an impressive presentation.
The digital content and video can be loaded to social real estate sites that allow realtors and home sellers to create accounts to market their properties online.
Potential buyers are also provided with the same information about the home they would receive at a showing. Now they can narrow their visits down to the houses they are most interested in visiting in person.
10. Investors are Growing Their Portfolios
Real estate investments will continue in real estate trends. Although forecasts call for trouble in the near future, investors are still adding properties to their portfolios. They understand that people need a place to stay and whether renting or buying there is money to be made in the short and long-term.
How investors look at 2020 real estate trends will guide their decisions. With Millennials shifting towards homeownership their needs are being taken into consideration.
There is an opportunity in both residential and commercial properties. These new homebuyers want to live, play, and shop in one place.
11. Real Estate Management Software is Growing
Investors are looking into new technology to help grow and manage their real estate portfolios. Real estate management software is changing the way investors manage their property.
This trendsetting real estate tool allows property owners to bring property management into the digital age.
Investors don't let their properties sit unoccupied. They typically turn their investments into rentals or long-term leases. With management software, they can stay abreast of financials, repairs, and the person hired to manage the properties.
Some software also offers tenants the ability to pay online and submit service requests.
12. Infrastructure Will Remain a Big Concern
Infrastructure has been a long-standing issue throughout the country. As the numbers of planned communities are built and businesses to support residents increase, other needs grow.
Those needs include better roads and means of transportation. The greatest hindrance is funding. For a long time, cities and states waited for the federal government to open the coffers. To keep up with the trends in real estate, more communities are devising plans at the local levels.
When it comes to 2020 real estate trends, expect to see planned communities pushing for better transportation options. More states will increase the number of toll roads to raise cash. Ferries will become popular options to connect cities separated by waterways to reduce traffic on interstates and popular bridges.
Are You Looking to Buy in 2020?
These real estate trends will help guide your buying decisions in 2020. Planning for the best time to buy or sell is a good idea. We've all learned from the mistakes of the past.
There are two certainties in real estate. One, people will always need housing. Two, real estate will remain at the center of our economy.
If you're in the market to buy a home, we're here to connect you with the right realtor. Click here to learn more about what we offer.