2020 was quite a challenging year so far that has a huge impact on different industries. Similarly, it has affected the real estate industry in so many ways. The coronavirus pandemic has taken a toll on home sales even in the spring season that used to be the hottest season for the real estate industry. However, the real estate market has made up for the spring season losses. Now, there are a few real estate trends of 2020 that you must be aware of if you are interested in buying or selling the real estate properties.
Here are 4 real estate trends of 2020 mentioned.
• Migration to Suburbs
Working remotely from home was already getting popular before the pandemic. However, the coronavirus pandemic has caused more people to work outside the traditional setting of office to be able to earn their wages. So, it is highly likely that a large number of employees are going to migrate from larger cities to suburbs that are more spacious and affordable. Similarly, the single-family residences are also going to trend in the real estate market. So, the demand for suburbs will increase as a lot of people will prefer to live in them.
• Demand for Experienced Real Estate Agents
More than 50% of real estate properties were being sold and bought without the help of real estate agents. However, the coronavirus pandemic has changed the dynamic completely. Now people prefer to hire experienced real estate agents who ensure to deliver the best results quickly. Since the experienced agents know how to carry out different complicated tasks in this critical situation, it is wise to hire them to avoid the risk factors involved in the process. The experienced agents can make a large share of transactions smoother for their clients. They also know how to organize a team to do the job more effectively.
• Increased Interest Rate
Another real estate trend in 2020 is the increased interest rate. It cannot be ignored as it is going to impact home sales negatively. The chances are that the banks won’t continue to lend money at 2% interest rate that is quite low considering the overall circumstances. So, when the reality will take over, real estate investors must have to go back to more historic interest rates. As a result, buyers of real estate properties will have a hard time securing their finances. It will further lead to a decrease in home sales.
• Online Real Estate Services
Online real estate services are growing rapidly that allow you to find multiple properties for buying, selling, or renting. You can browse the services and pick the most authentic one to buy or sell a house. It will act as a third-party buyer that buys your home and then resells it at a higher price. However, you won’t have to worry about the renovations, inspections, repairs, agent commission, or other costs. You can also hire a virtual agent online to make your buying or selling processes smoother. Even the transactions are happening using digital technology to streamline the process.
