The world is currently dealing with an ongoing Covid-19 pandemic in which everyone is doing their part by socially distancing, wearing masks, and working to move past the virus. This pandemic has affected all industries, including real estate. For a couple of months, many real estate agents and companies stopped in-person viewings, which affected the amounts of homes sold.
Also, fewer homes were being put up for sale during this time as everyone was dealing with a lot of uncertainty. However, now that lockdowns are over in many areas, what about the rest of 2020?
What can people expect when it comes to property trends throughout the remainder of the year? Whether you want to list your house for sale, or in the market for a new home, this blog post is going to look at a few property forecasts and trends for 2020.
The Prices Will Continue to be High
While more homes are being put on the market now than at the start of the pandemic, there is still a ton of demand that was pent up during lockdowns.
This demand is steadily increasing the price of homes in many areas across the country. Bidding wars are taking place across the USA that are pricing out many interested home buyers, making it hard for them to compete.
As we continue through 2020, expect these prices to continue to be high. People waited months to shop around for homes, and they no longer want to wait.
People are quick to make large offers and many don’t have the patience for a long negotiation process after waiting months already. Being the sole interested party on a home will be rare, so prepare for some competition. Eventually, prices will level off as supply meets demand, but who knows how long that will be.
Securing a Mortgage May Prove Difficult For Some
When people look into buying a house, one of the first things they look at are the mortgage interest rates. Right now, they are at some of the lowest points they have been in a long time, which is attractive for buyers as their loan will be much less expensive over time. While the mortgage rates are low, now isn’t the easiest time to get a mortgage.
A big reason for this is the uncertainty that the pandemic has caused. Millions of people lost their jobs, and the economy is fairly unstable still.
This means that many lenders want to see larger down payments, a better credit score, and other types of proof that you are doing well financially. This is to offset the potential risk of the uncertain times we are in.
If you have a low score, and can’t provide a larger-than-normal down payment, you might find it hard to be lent the money you need to buy a home.
As things slowly get back to normal this will begin to change, but expect to have to prove your financial responsibility a little more than previous buyers would have had to.
The Growing Impact of Technology
Technology is seemingly overtaking our lives and several of the industries around us, and real estate is no different. The internet has made it easy for sellers to market their homes and made it quick and easy for buyers to check out hundreds of homes in a session.
There are even virtual home viewings, 3D photos, and VR walkthroughs available in many places. You no longer need to leave your home to explore the various homes in your area.
The addition to using the internet for research and data, the technology inside the home is also continuing to advance. More and more people desire smart-home features like a smart thermostat, smart light fixtures, and an intelligent home automation system.
These are no longer a luxury and are a requirement for certain buyers. Sellers and builders will have to keep this in mind in 2020 and beyond.
In conclusion, we hope that this article has been able to show you some of the global property forecasts and trends for 2020.