The end of a year means it’s time to start preparing for the new one. As 2019 comes to a close, it’s important to take time to reflect on your areas of success, growth, strengths and weaknesses. Doing so can help you plan for the future, setting you up for greater success.
Reviewing what happened in 2019 can help you see where 2020 is heading, enabling you to plan what you hope to achieve in the new year. One way to start is to review the current and projected trends for the coming year. While no one can be sure what will happen, projections can help you get an idea of what to expect so you can go in to 2020 as strong as possible.
Baby boomers and millennials are causing shifts in the market, especially when looking at the types of housing. For one, baby boomers are reaching retirement age. In fact, according to a study by Harvard’s Joint Center for Housing Studies, in 2020, one out of three U.S. households will be headed by someone over 65. While this could mean downsizing to smaller properties, many seniors may also look for active living communities, including upscale apartments.
Meanwhile, since many millennials are now parents, many young families will be looking for housing in what is dubbed “Hipsturbia.” These are suburbs that are evolving on the outskirts of large cities and often consist of a more diverse community. They’re also more pedestrian-friendly, as they promote community transit and keep stores in close proximity.
iBuyers have been a hot item for a while, now. The point of iBuyer programs is to allow homeowners to sell their home with a quick close, complete some light maintenance, and then the iBuyer resells the property for a profit. iBuyers function on technology (and convenience) by allowing sellers to value and sell their homes without needing to go through the traditional route of listing, showing and waiting. In 2020, new buyers and sellers may look for convenience and may be willing to sacrifice thousands of dollars in equity if it makes their lives easier. For ways to coexist with iBuyers in the new year, watch the Secrets of Top Selling Agents webinar with Kenny Klaus to learn how to use these programs as a tool to provide value to your clients.
Smart home technology is also becoming more popular as new devices are released. While this technology was slow to break through, it has recently gained traction in popularity. Currently, security and energy management are still the top uses for smart home devices, but convenience is also a rising consideration. The expansion of this demand could affect both buyers’ interest, as well as increase property values in 2020.
Following the current trend, there has been a steady rise in rent and home prices. For minimum wage workers, according to the National Low Income Housing Coalition (NLIHC), fair market rent for one-bedroom rentals in 99 percent of counties in the U.S. is not affordable. This may manifest as a drop in first-time buyers or even renters, as both millennials and Generation Z struggle to make ends meet. In addition to this, baby boomers, who are now looking to sell their homes to downsize, may have trouble finding buyers. The sale price of an average, single-family home is currently around $284,000. While the luxury homes market saw its challenges in 2019, 2020 may be a turning point, as the market saw its first gain since 2010.
While rising home costs may prevent some from buying or selling in 2020, lower mortgage rates may enable others to reach their housing goals. According to NAR, mortgage rates are lower than they were one year ago. These trends are important when determining which markets you’re working with and how to approach future challenges. Now is the time to start preparing your scripts or making any changes to your marketing strategy.
While any year will have its ups and downs, the way you approach it is a determining factor in your success. If you want to add even more traction to your listings in 2020, consider Homes.com’s City Sponsor Ads. These ads connect you with active buyers searching for a home online by prominently displaying your listings among the first search results in your city. Contact us today to check availability near you!
Mark Mathis is vice president of Sales for Homes.com. For more information, please visit www.marketing.homes.com.