The 2020 real estate market is already in full swing and it’s only January 5th! 2019 was a time of low rates, low supply (in most areas and price points) and high demand. My guess is that rates stay the same or even slightly lower this year. No one has a crystal ball but, in talking with my favorite mortgage brokers, this is the common thought. This should also help buyers choose homes in early spring, vs waiting. In years that rates are great, buyers are nervous that rates will increase and want to take advantage of locking in early. You have to be under contract to lock your rate, so this will be a motivating factor when looking in early Jan-Feb.
There is a major lack of inventory at entry level pricing in all areas based on varying factors including the cost of build materials and land and the uptick of millennial buyers (1980-1988 birth date) getting out there and buying homes. They are the largest group buying nationally at a rate of 37% of 2019 sales. They typically want walkability (to shopping and schools), smaller homes and clean/modern vibe. They are internet savvy so online presence is key to marketing with millennial buyers.
Our office was buzzing this past week with new contracts and home staging dates. It was this way last year and the one prior so let’s hope it’s another positive year. Cheers to 2020!