2020 Real Estate Trends

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Real Estate

2019 was an amazing year for RE/MAX Southern Shores! We remained the #1 real estate agency in the Grand Strand and our agents generated over $500 million in sales. Our momentum is transitioning over into this new year as we continue to bring in new agents and expand our agent development course offerings. If you are looking to move to the Carolina coast, we have some real estate trends that you need to know before beginning the home buying/selling process!
Trend #1: Home Prices Are Still Rising Slowly
In 2019, home prices grew 3.3%, and this year seems to be no different. However, real estate gurus predict home prices will continue to rise, but at an even slower rate of 2.8%. The slow growth rate is not likely to break your bank like the rapid growth of previous years.
So what does this mean for buyers & sellers? For sellers, it means a nice profit. But continue to be aware of competitors. Wait for the right offer and make sure you prepare yourself with good ROI investments and a real estate agent who knows the area well. For buyers, make sure you know what you can afford & commit to that amount. It is in your best interest to be able to put down at least 10% on a 15-year fixed-rate loan as well. Also, don’t forget to keep saving, expand your search, and be ready to sacrifice some of your wants.
Trend #2: Mortgage Interest Rates Are on the Decline
In 2019, mortgage loans dropped 4%, and in 2020, it is projected that interest rates will remain around 3.7% for a 30-year mortgage and 3.2% for a 15-year mortgage. Remember, we recommend staying with the 15-year mortgage loan & these rates are not guaranteed.
Again, what does this mean for buyers & sellers? For sellers, buyers will be more interested in buying if rates stay low. However, if the rates do rise, plan for your house to remain on the market longer than you may want. Experienced real estate agents can help set expectations. Buyers, remember to go with the conventional 15-year fixed-rate mortgage. This is so you know exactly what your payments will be for the duration of the loan.
Trend #3: The Majority of Home Buyers Are Still Millennials
This age group represented 37% of home buyers last year and they are most likely to remain the majority again. In order to get more attention on your home from this group, remember to upgrade your online listing (80% of millennials last year found their home on a mobile device), highlight perks over size, and know the popular features of your home. Millennials want laundry rooms (86%), hardwood front exterior (81%), a patio (81%), garage storage (80%), and a walk-in pantry (79%).
What do millennial buyers mean for other buyers? Make sure you are prioritizing what you want in your home. The best way to do this is to know exactly what you want & what you absolutely need. Write a letter to the seller. This could help you stand out by explaining your personal story and providing some information as to why you are really interested in their home. Finally, hire an experienced pro. 90% of millennials used a real estate agent to purchase their home last year. Having an experienced agent can make the process go a lot smoother.
Are you ready to begin your home buying or selling process? Give us a all and we can connect you with one of our reliable, experienced agents that will fit your personal needs.
North Myrtle Beach: (843) 249-5555 | Myrtle Beach: (843) 839-0200 | Conway: (843) 248-0001 | Garden City: (843) 357-0220

Information gathered from: https://www.daveramsey.com/blog/real-estate-trends