2020 Home Buying Trends: What You Need to Know?
Advance Real Estate Commission
The real estate industry relies heavily on market trends. With the current global pandemic, many agents are wondering where the market is heading? To sell real estate, realtors must know how to predict future trends. They don’t rely on a crystal ball, but rather on data analytics. The experience will help to identify these upcoming trends. In these uncertain times, a commission advance company will also benefit a realtor.
Listed below are six home-buying trends that experienced realtors are looking out for in 2020:
- Recession Anxiety, Without Recession
Every seven years, the real estate market experiences a natural boom and bust cycle. At the moment, there’s a record-breaking upswing. The end of this growth period is hard to predict, but everyone is expecting a downturn very soon. Although there won’t be a 2008-level slump, experts are anticipating a slowdown in the following year. According to the Congressional Budget Office, next year, there will be a 2.1% drop in the GDP and a continued small growth period over the upcoming ten years.
Nevertheless, real estate experts are thoughtfully optimistic. Many are forecasting the housing market to continue on its growth path for the next two years. A recession may follow afterward, but it might not be the case because this was predicted in 2016 as well. The reality is, no one knows when the recession will hit, but it will do so at some point. Until that happens, the real estate market will see quick sales, higher home values, strong demand for housing, and a payment loan from a commission advance company.
- Expect Minimal Growth in Buyer’s Marketplace
Many housing markets experienced a growth slowdown last year. According to the Case-Shiller national home price index, there were thirteen successive months of home price reductions over an eighteen-month period. Could the market be evening out?
The UIL reports forecast a steady but slow growth over the next ten years. This trend will persist in the buyer’s market, which had started in 2019. There’s going to be a disconnect between sellers and buyers because the sellers had purchased during the highs of 2014-2015. They’ll come to the market with resale inventory that won’t match buyers’ expectations. This will make it difficult for realtors to get successful deals. Besides, the average listing days for a property will also increase. Many realtors will have to seek financial advance assistance from a commission advance company.
- Encouraging Low Mortgage Rates for First-time Homebuyers
In October, the Federal Reserve has reduced interest rates. This is good news for first home purchases in 2020. This gives first-time buyers a chance to get into the real estate market. These low mortgage rates will hover for some time in 2020 and will incentivize many first-time buyers to purchase a home now rather than later. This is an excellent opportunity for new buyers who want to enter the market at a low cost and future resale.
- The Rise of the Brooklyn Effect
Also called Hipsturbia, these are areas outside cities. They’re defined by good restaurants and bars, accessible public transit, unique retail, play spaces for children, and affordability. This living environment tempts Millennial buyers. They’re not interested in living in cities and paying sky-high prices for homes. Millennials are also not interested in living in large homes with huge yards.
Many realtors are getting requests for properties located in ‘hipsturbias’. In fact, the demand for this is on the rise, particularly in cities like Atlanta, Chicago, San Francisco, and New York. This trend will be continued into 2021 as well. In the rise of the Brooklyn market effect, the realtors can make use of the services provided by the commission advance companies.
- Housing Growth in the Sun Belt
Many Americans are interested in moving South. This is a strong trend in the real estate industry and one that will stay well into 2021. Areas in the sunbelt are particularly prevalent at the moment. The cities of Austin, Charlotte, Nashville, Orlando, and Tampa are experiencing massive housing growth. The advance commission companies can help real estate agents/brokers who focus on this booming South market.
- Environmentally-Conscious Home Purchases
Many home buyers are interested than ever before in green technology and smart homes as a way to mitigate climate change. Smart homes and technology continue to tempt homebuyers. Homes equipped with ‘green’ features and technology are going to have a higher demand than those without. Famous examples of green tech that potential homebuyers look for are solar panels and smart thermostats. It all boils down to living greenly and conserving energy.
There are a growing concern and awareness of climate change amongst builders, homeowners, and homebuyers. Wildfires and power cuts in California are prompting Americans to seek self-sustainable tech and off-the-grid living. Also, the community-centered approach of retiring baby boomers and millennials is creating a huge demand for sustainable living.
A collection of factors- climate change, yearning for hipsturbias, feeling for living in isolation, and keeping costs down, will drive buying trends in 2020. Realtors can count on money upfront from their sales from a commission advance company in these uncertain times.
Just Commission Advance is designed to provide you with income security amidst the current economic uncertainty. To learn more about our advance commission services, get in touch with us today