What’s happening with the real estate market in 2020? Torii makes its predictions and shares what you need to know about buying or selling a home in 2020.
Millennials will dominate the home buying market.
Nearly 5 million Millennials will turn 30 in 2020, which (according to Realtor.com) is when most people get really serious about buying a house. At the same time, the older Millennials will be turning 39, an age when they’ll be looking to move to the suburbs in search of more family-friendly homes and towns. According to Realtor.com, Millennials will make up more than 50% of mortgages by Spring 2020.
Move-in-ready is the goal.
Even with a plethora of home renovation TV shows on the air, home buyers are generally not looking to gut their own home. “Many of our home buyers who are looking for their first home are not interested in a fixer upper,” says Mike Sokolowski of Torii. “Fixer uppers can make incredible investment properties, but the average Millennial home buyer wants a place that is move-in ready. They’re willing to paint walls or remove wallpaper, but that’s about it.”
Inventory will remain low.
Even with building projects happening seemingly everywhere, inventory of houses will remain low in 2020. Boomers and Gen Xers are staying in their homes longer, making it so there are fewer houses being listed for sale. This can cause multiple-offer scenarios for houses that are on the market. One segment that will remain constricted is the entry-level home, according to Realtor.com’s 2020 forecast.
We will want smaller houses.
With climate change a major topic of conversation among Millennials, it’s no surprise that those looking to buy a home for the first time are not interested in huge homes that require a lot of energy to heat and cool. Millennials are also searching for affordability. After having experienced the boom of city real estate – and skyrocketing rental prices – they’re ready for affordable living as they start families. Millennials also struggle with student loan debt, contributing to their desire for affordability.
If you want to sell a house in 2020:
Sellers at the entry-level end of the market will have an easier time selling their house. At the same time, sellers in the upper end of the market will need to have patience and an innovative approach to selling (or incentives) in 2020.
If you want to buy a house in 2020:
Buyers can expect competition at the entry-level end of the real estate market in 2020. Considering putting more money down, waiving inspections, and having a pre-committment (as opposed to a pre-approval) prior to putting in an offer can all help make your offer more competitive.
If you’re serious about buying a house in 2020, get in touch with the Torii team to help get you prepared for a competitive buying year.