The year 2019 saw record sales numbers in the real estate market which led to an increase in median house prices. In fact, last year median prices hit a new record at $316 K per home. As far this year is concerned predictions are that there will not be the same growth levels in price, as last year. In other words, things have plateaued as far as home selling is concerned. That is not to say home prices are not increasing, it’s just that it is unlikely to skyrocket compared to previous years. And for those who are thinking about buying or selling a house, here is The closing process for a home explained.
Influencing Factors
If you want to know what is influencing this growth in real estate, talk to your local real estate experts. Of course, they’ll all have different opinions, but there are some predictable reasons behind it. In the last few years, the economy has been doing well overall. The country is experiencing one of the lowest unemployment rates in its history. On top of all this, mortgage rates are also relatively low. For all these reasons and more, the problem sellers are going to have is finding enough houses to keep up with demand. It is a sellers’ market now, and this trend is looking like it will continue in 2020 and beyond.
Sellers VS Buyers
With the kind of prices, houses are being sold for now, it means sellers can expect to make a handsome profit. Just keep in mind that competition is fierce which means depending on location, expect to compete with the house next door to make a sale. Getting priced out of the market can happen and the only thing to do in this situation is to try and make your home stand out as much as possible from the rest. For those of you looking to buy a house, the first order of the day is to get pre-approved. This way, you will have a clear picture of what is affordable. With the kind of prices floating around today, better to underestimate what you can afford, to avoid disappointments.
It’s Not Only About Houses
The feeding frenzy that has gripped the home real estate market, has taken away attention from other aspects of the real estate world, mainly, retail space. It has been mayhem as far buildings being rented out for retail space. As businesses small and big close doors, they are leaving behind the space they were renting. Landlords have been struggling to find new tenants for the empty space, especially for the ones the large retailers have left behind. However, all news regarding this sector is not gloomy. This is partly because digital companies are renting brick and mortar locations to set up shop. As far as 2020 is concerned, apart from e-commerce stores, expect to see more restaurants, fitness centers, and entertainment areas to take over the spaces made empty by traditional retailers.
Starter Homes Strike Back
Just a few years ago, the younger crowd was not buying that many homes. This has changed now as more and more young, first-time homebuyers are buying new homes, or at least flirting with the idea. The problem is, there is a shortage of houses. This is why starter homes are starting to look enticing for a lot of first time, young buyers. All you need to look at are the companies offering entry-level houses, such as LGI or Meritage homes and you will see their stock has risen substantially. As far as 2020 goes, this is not likely to change
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