This is a list of 20 trends we see happening in real estate in 2020…
1. The first half will be busy taking advantage of low rates and eager buyers sidelined from winter. The second half will be distracted by the Presidential Election.
2. Sellers will expand on home improvements before selling, often well beyond staging as buyers become less inclined to buy homes that need work…and wish to know all costs upfront and mortgage everything at low rates.
3. Insurance costs will continue to rise as the insurance industry absorbs ( and passes through to the consumer) the costs of various natural disasters and the forcast for climate induced issues in the future.
4. Mortgage rates will remain low but could come under pressure as rising energy costs and wages which could trigger inflation.
5. Awareness of real estate taxation disparities will grow and fuel political anger…and hopefully, action.
6. Urban migration will continue as walkability increases in desirability. However, suburban migration will expand due to affordability concerns, especially for millennials.
7. The shortage of affordable housing options will expand. Smaller, more affordable homes will have extreme competition from first-time buyers, investors, and down-sizing baby boomers.
8. The lower end of the market will see the most price increases due to limited inventory and high demand.
9. Very large homes that are not updated for modern tastes will need to be re-invented - or deeply discounted - to appeal to next-generation buyers.
10. Buyers will seek homes scaled to their needs, avoiding homes with rooms and features they are almost certain will never be used.
11. Amenities that save time will grow in popularity. Sharing amenities and services will grow in popularity, even in single-family neighborhoods. The need for guest cottages and apartments will grow to accommodate aging parents....or aging kids.
12. Maintenance exhaustion. The less maintenance, the better!
13. Real Estate Agents will continue to become much more than transaction facilitators. Most of the best agents already perform multiple roles outside of the traditional brokerage role and these client relationships will deepen and grow.
14. Sustainability will become even more of a focus, reducing waste and being more environmentally responsible. Because we care about the future of our planet AND to reduce ownership costs.
15. Expect new/higher local taxes to offset rising wages and reduced gasoline usage and the taxes collected every time you fill up.
16. Smaller towns and suburbs will city-fy in their attempts to keep people from moving to more urban areas. Urban areas will attempt to create more of a village feel to prevent suburban flight.
17. Bigger, taller: expect zoning laws to be modified to allow more building density to bring down housing costs and reduce commutes.
18. Recovery Technology: as climate change continues, recovering from storms, floods, fires, etc will require technology to speed things up and minimize damage and disruption.
19. Expect sophisticated air and water filtration and other health-related home health-enhancers to grow in demand.
20. A US-China Trade deal may lower the cost of some building supplies offsetting rising labor costs. It will not be enough to bring down housing costs. The fear of cycles will prevent mass building, the only solution to housing affordability. And technology may step in to reduce building costs by speeding construction up thereby reducing financing costs.
Thanks to Leonard Steinberg of Compass for his insights.
Roaring into 2020!
Happy New Year and welcome to a new decade. 2019 was quite the rotation around the sun. Last year included time spent on personal growth through my dedication to a daily meditation and gratitude practice, educational growth in the form of a green certification and, very importantly, giving back as often as I can including a two day charity ride for Climate Ride along with several other volunteer opportunities sprinkled throughout the year. I also went to Portugal to spend time with extended family and checked a bucket list box traveling to Patagonia to hike and camp for two weeks of amazing adventure and challenge. In 2019, I had the immense pleasure of working with a dozen clients helping them buy their dream home or sell their home and move onto the next chapter. My WHY is that I love what I do and I'm thrilled to get up every morning. In a nutshell, it's working with people collaboratively, creating win/win situations for everyone, connecting the dots, solving problems and making things happen! So, thank you all for letting me wake up each and every day excited to get out there and do what I love. Excited for what's coming in 2020.
