The year 2019 is ending, and it is time for Realtors® to take stock to see what they have achieved so far. Whereas it has been a good year, we cannot ignore that the fact that a lot needs to be done to achieve more in 2019. As you prepare your new year’s resolutions, it is worthwhile forecasting the real estate trends to expect in 2020. Throughout the year 2019, we have experienced a mixture of both positive and negative developments. We have seen the prices continue to skyrocket while the buyer’s appetite kept changing throughout the year. So, what can we expect in the year 2020?
Here, I will present to you some of the latest real estate trends to expect in 2020. You will get to learn factors that are likely to influence the buyer’s preferences. From new technologies in the real estate industry to looming economic changes, a lot is in the waiting in the coming year. As a real estate agent, the best you can do right now is to prepare appropriately. Therefore, after reading this post, you should be able to plan your 2020 real estate marketing strategies well. Here are the real estate trends every real estate agent needs to know.
Millenials will make up the majority of home buyers
Yes! Believe it or not, millenials are expected to continue dominating the residential real estate buyers market. Reports indicate that approximately 74 million millenials comprise a huge demographic of the real estate consumers, that are ready to purchase residential properties. Essentially, the number of millenials interested in purchasing a property has surpassed the number of baby boomers who burst onto the home buying scene between 1970 and 1980.
According to Forbes Magazine, the average household income of millenials who are considered potential home buyers is $88,200. Do not forget that the average group of home buyers from the millenials generation is now of age, and have stable jobs, earning a decent income. Economists believe that millenials hold the salvation for the slowing home market in 2020.
Shift to second-Tier Cities
Real estate agents should start setting up shop in second-tier cities as the high real estate prices in the first-tier will keep buyers away. If you have followed keenly, investments in second tier cities have increased significantly. Buyers seem attracted by the more affordable offer prices, and we are seeing large real estate investors leaving the first-tier cities. Therefore, the capital movements are resulting in economic growth with greater value for the real estate properties in the second tier cities.
Home staging will remain a big business
Over the past two years, the real estate market in various Canadian cities has experienced an increased competition. Home sellers are certain that by staging properties, they are likely to get substantially higher prices. Therefore, it is expected that home sellers will seek out the services of home stagers so as to attract more buyers, allowing them to sell properties faster and at an attractive price. As this trend continues, soon every home will be staged, making home staging a crucial just like home inspection is for the buyers.
Video Marketing is here to stay
Video marketing continues to become a norm in various industries. For real estate agents, we cannot deny that a Video on Facebook or other social media platforms gets more views, likes and shares than just a statement. Therefore, it is expected that home sellers will continue recording high-quality videos, and perhaps aided by use of drones. This is in order to pique the potential buyers, who in this case are millenials. It is already in public domain that millenials search online and particularly through social media platforms when making purchase decisions. This is what has contributed to the success of videos in selling properties. This is one of the real estate trends that will keep growing and Realtors® can only join the trend.
More listings for luxury homes
It is expected that the real estate inventory of luxurious high-end apartments will experience a significant boost. Consider that sellers are expecting to sell at high home prices, incentivizing them to continue listing luxury homes. This could prove to be good news for the real estate agents who want to cash in on the luxurious apartments and luxury homes in Canada.
Realtors are preparing their real estate marketing strategies for 2020. It is advisable you consider the real estate trends we have looked at above. This will inform your planning, helping to arrive at strategic decisions.