Studying trends, especially with regards to past occurrences helps to understand the reasons behind human behaviour. Within the context of real estate, awareness of trends keeps stakeholders, especially prospective buyers from making arbitrary decisions that may hurt their finances.
Here are five trends that we predict will prevail/continue to prevail in 2020.
1. New Technology will play an integral role
With the increasing popularity of application development for every product and service imaginable, we can expect to see more web platforms and applications that will connect sellers to buyers. This will facilitate ease in most of the home purchase processes.
Already, such companies exist, which leverage existing technology to make instantaneous offers on homes. They are adding a touch of sophistication to the entire business of home sales and purchase. This can only get better in 2020.
2. Millennials will continue to top the home buyer list
People born between the eighties and nineties are more likely to increase demands for homes than people under any other demography.
This is particularly because people within this age are often just finding their footing in life and moving out of their guardians’ homes to start new families. Also, they generally earn well enough to afford these homes.
Another thing is that a significant percentage of them run their businesses and have realized that it’s no longer daunting to get Limited Company Director Mortgage online.
3. Finding homes to buy will become a treasure hunt
According to the Office for National Statistics, the number of households reached 27.8 million in 2019.
Most buyers still have to jump through hurdles before qualifying for a mortgage. Nevertheless, there are speculations that the interest rates may be cut. This will afford people even greater means to buy the houses of their dreams.
4. Sellers will experience low sales due to the higher cost of homes
When homes are said to be less easy to come by for prospective buyers, it is not for lack of sufficient housing structures per se, but lack of affordable homes.
A lot of homes that cost up to £350,000 remain with no offer from buyers because they exceed the £165,000 which the average buyer can often only afford.
A lot of experts have expressed their optimism in the situation being improved by rising income and low mortgage rates. According to them, this will enable people to more easily afford more expensive homes.
While this is a valid point of view, there are many more people, especially first-time homeowners who would rather encourage developers to build more affordable homes.
5. Sellers could potentially experience a good sales year
With the low availability of affordable homes, sellers of the few ones available just might be cashing in on the situation.
Brexit will have a great impact on house prices during this transition period and beyond, although the extent can’t be determined yet. Homes may likely be in the purchasing means of many borrowers and this will automatically lead to strong competition among buyers.
Different stakeholders and experts are already anticipating a bidding war which will have the sellers smiling to the bank.
The bottom line is that you should make a well-informed decision when shopping for mortgage rates.