Discover the 2020’s Hottest Real Estate Trends
Hottest Real Estate Trends:
No matter the time of year, the perfect time for you to invest in real estate is NOW. This is true if you know how to invest correctly. With the 2020 real estate trends shaping the market, new opportunities arise. A new president, endless natural disasters, and growing cities have created a golden opportunity to purchase an investment property. However, a few changes the central banks and government have announced could either make—or break your portfolio.
Watch out for these significant changes happening right now to the real estate market around you
The Economy is Booming…But may spell bad news for buyers.
The dollar is back on the rise, the GDP is rising, and unemployment rates are crashing. All that spells success for Americans and their pocket. Yet, it also means that banks are going to get a bit more greedy. Chairman of the FED, Jerome Powell, just announced a rise in the benchmark interest rate^1. According to CNBC, “Mortgage rates moved a full quarter of percentage point higher during January.” Because the economy isn’t expected to stop growing anytime soon, these adjustments are necessary. Otherwise, the country will begin experiencing inflation problems.
But the Good News is… More Options for You.
The big banks plan on making it easier for buyers to be approved for loans. Since the crash of 2008, Wells Fargo has remained conservative with lending. But now, because the national credit average is rising, trust is also building again. Also, millennials will very soon enter the real estate market. This opens up access to the largest group of spenders since the baby-boomers.^3 That means you can look forward to more diverse payment options and a less stressful application process.
The Local Market is about to Boom.
Have you heard of Tax migration? It’s when people leave their highly taxed states like California and New York for more affordable options. Because of the newly introduced tax-reform bill, which increases taxes on investment properties, owners with multiple homes are pressured to downsize. State income tax also continues to increase in these states. The Washington Post reports, “California’s recent increase in its top income tax rate to 13.3 percent, making it the highest in the nation…
The Mega-Wealthy will deal with more problems…
The tax reform puts more money in everyone’s pocket. However, the nation’s top earners may find difficulty buying the home they want. Competition for high-priced homes is going to increase as those with deep pockets make their next investment. Interest rates for second homes remain relatively unaffected. We will see more cash buyers in the market, so if you have deep pockets, find your investment and sit on it as fast as possible.
Selling Your Home without an Agent has Become Easier than Ever.
Like most other industries, real estate is entering the digital age and moving their business online. For sale by owner is becoming more popular because these companies offer complete solutions. These solutions cover the mortgage approval, inspection, and even contraction signing steps.^5 While this new technology is in its infant stages, companies like opendoor.com offer a new service. They provide the ability to list your home for free and receive bids from buyers, nearly bypassing the role of a real estate agent altogether.
If you’re buying or selling your home, check out the extensive library of resources we’ve created. They can help you bypass the real estate agent and receive the total value of your home.
Click here to go to the beycome Resource Library.