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January 2020 Housing Market

Posted Thursday, January 16, 2020

As 2020 begins, many people will be looking to purchase new homes. However, faced with uncertainties within the U.S. economy, potential homeowners may hesitate when it comes to assuming decades of mortgage payments. Yet despite this, real estate agents everywhere continue to get plenty of interest from buyers and sellers alike. Since the majority of this interest comes from referral leads, it is crucial to convert these leads into transactions. If you're dealing with individuals who may still be hesitant about today's housing market, here are some important trends to consider.

If you want to get people's attention regarding the purchase of homes, low interest rates will certainly do just that. In 2020, experts predict interest rates will remain low. According to Freddie Mac, interest rates will average slightly below four percent for a 30-year, fixed-rate mortgage, giving buyers the perfect opportunity to purchase their dream home.

While buyers will benefit from low interest rates in 2020, those looking to sell their homes may benefit from continuing low housing inventories across the nation. According to a recent Re/Max report, housing inventories may be as much as nine percent lower in 2020 than 2019. While this may make it more difficult to find a new home, it does offer possibilities when it comes to referral leads. By working with motivated sellers, you can offer buyers comparable properties at lower prices, allowing them to have a win-win situation with lower prices and low interest rates on their mortgages.

With new housing construction largely occurring on higher-priced properties, many buyers will be looking to find homes in well-established neighborhoods. This will be especially true of Millennial buyers, who are looking for affordable properties that won't bust their budget. Therefore, properties owned by senior citizens may be a good fit for these buyers. As more seniors make the move to assisted living facilities, numerous well-kept homes will come on the market. By working closely with this group of buyers, agents can beat the problem of low housing inventories and maintain a steady stream of successful sales.

While Millennial buyers are looking for affordable properties, so too are investors. In 2020, this may prove to be more difficult that in years past. Since many baby boomers are choosing to "age in place" and keep their long-time residences, investors will have to work harder to find new properties. Like Millennial buyers, investors will set their sights on those properties being vacated by seniors. In doing so, they may be open to properties they may previously had not been willing to consider, which can work to your advantage as an agent who can specialize in such properties.