Happy New Year! This is a list of 10 trends I see happening in real estate in 2020….although it is to be noted how many predictions seem to be wrong these days….
1. The first half will be busy. The second half will be distracted by the Presidential Election.
2. Sellers will expand on home improvements before selling, often well beyond staging, as buyers become less inclined to buy homes that need work… and wish to know all costs upfront and mortgage everything at low rates. Who has any cash left after closing for home improvements when pricing is at a premium?
3. Mortgage rates will remain low but could come under pressure as rising energy costs and wages trigger inflation.
4. Awareness of real estate taxation disparities will grow and fuel political anger…and hopefully, action.
5. Urban migration will continue as walkability increases in desirability. However, suburban migration will expand due to affordability concerns, especially for millennials.
6. The shortage of affordable housing options will expand. Smaller, more affordable homes will have extreme competition from first-time buyers, investors, and down-sizing baby boomers.
7. The lower end of the market will see the most price increases due to limited inventory and high demand.
8. Very large homes that are not ultra-prime will need to be re-invented – or deeply discounted – to appeal to next-generation buyers.
9. Smaller towns and suburbs will city-fy in their attempts to keep people from moving to more urban areas. Urban areas will attempt to create more of a village feel to prevent suburban flight.
10. Recovery Technology: as climate change continues, recovering from storms, floods, fires, etc will require technology to speed things up and minimize damage and disruption.