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—Real Estate Trends

2020 Trends in the Housing Market

Thinking about making a change on the home front this year? Regardless of what you want to do with your house, here are some key trends impacting the U.S. real estate market that you should be aware of. 

Thinking about making a change on the home front this year? Regardless of what you want to do with your house, here are some key trends impacting the U.S. real estate market that you should be aware of. 

Let the good times roll

While a quick scan of the headlines on any given day might suggest the doom and gloom of a potential recession looming on the horizon, in reality most economic indicators point to continued strength in the real estate market throughout 2020. As investors from around the world continue to view the U.S. as a prime place to park their dollars, home sales are expected to remain strong throughout the year. 

Plus, interest rates remain low, which will help keep demand high for new mortgages and buyers interested in moving to new digs. In combination with a shortage of new housing in many markets, these factors could lead to overall price growth for the year.


Higher growth in small markets

Rising housing costs, especially in already expensive coastal cities (looking at you New York and California), may create shifts in relocation trends including flight to cheaper cities. For example, at Sundae we’ve worked with a number of customers in California who’ve sold their house and moved to more affordable cities in the midwest and south. 


 

Innovation in the real estate game

Demand for alternatives to the conventional home sales process in 2020 and beyond will only get stronger. Millennials are now the largest home purchasing demographic and they prefer to do everything online, from researching to buying, so we’re seeing technology-driven real estate companies innovate and change the sales process in unexpected ways (you can read our guide to one of these methods called iBuying). 

Off-market selling will become a more common approach for many homeowners who are seeking convenience and speed in completing a transaction. This divide between established and emerging ways of selling may drive real estate agencies to either push back on or partner with large home investment companies who are driving changes in the market. 

Where are the Boomers going?

Another big change related to demographics is the growing trend in downsizing. As the Baby Boomer generation ages, we expect the number of households looking to downsize to increase next year and in coming years. According to a recent article in the Wall Street Journal, boomers are preparing to sell approximately one quarter of America’s homes over the next two decades.


This means that a lot of older, lived-in homes will need to be sold. These older homes are most often sold directly to off-market cash buyers in “as-is” condition. The buyers restore them before the next family moves in. Sundae has created a marketplace to help owners of these dated homes sell more easily, quickly, and for a higher price. 

 

This article was adapted from a piece originally appearing on Sundae.com titled 2020 Housing Market: What You Should Know.