There are various real estate trends that are negative and positive for 2020 and beyond. Real estate property prices are continuing to skyrocket due to various factors. These factors include a new buyer demographic emergence and a looming economic downturn.
The new buyer demographic is Millennials. In fact, most home buyers are Millennials. This generation members are obtaining stable jobs and incomes up to $88,200. These members prefer upper-middle and middle-class homes. They are also expected to lead the mortgage pack as well as account for 45% of the market.
When it comes to the looming economic downtown, there are some concerns when it comes to the real estate market. For one, there are some increases in home prices. With the rising prices in home prices and the recent looming economic downtown due to Covid-19, there are some concerns about a possible housing crash on the horizon.
One of the most prominent trends of real estate includes the increasing real estate investment in the US due to the economic decline. A 19% increase in capitalization occurred in the industry for $470.7 billion. Domestic organizations decided to boost their net holdings for this development. In fact, this is the primary reason for the sector’s improved investment flow thus causing an effective reversal in a two consecutive year decline. Furthermore, new technology, like real estate management platforms, boosted the management capabilities of property owners.
Situations for luxury community areas, like Ormond Beach Florida new homes, have been looking better. Even though the market has some positive and negative situations, there is slow but steady growth overall. So, the following are some positive results so far:
- The increased market capitalization flow in the real estate sector aiding in the industry recovery in two years.
- More real estate investment from increased domestic activity
- Investors focusing on real estate logistics
Why is there a Slow Increase in the Housing Market?
Home listings are expected to increase by one percent. One of the reasons for this is due to the ongoing economic uncertainty. Home sellers are holding on to their properties due and are planning on selling when the economy looks better. Secondly, investors are refraining from the market due to the increase in mortgage interest rates.
On the other hand, when it comes to newly-built homes, there is an anticipated eight percent increase in new home construction. And when it comes to a potential decrease in offers, sellers should work with real estate agents.
According to Realtor.com, the following includes how double-digit prices will continue to grow in the fall:
- Over last year, the median national home list price raised by 11.1%.
- From August 2020 to September 2020, the home list price increased by up to 10.1%.
- Over the last year, the US median listing price increased by 13.9% which is an 11.9% increase from August to September 2020.
- Over the last year, the biggest metro areas in the US will increase by 9.3% on average.
- Among the biggest 50 metro areas, most northeastern markets increased over the year by an average rate of 12.8% in comparison to 7.2% for southern metros, 8.7% for western metros, and 10.9% for midwestern metros.