With each passing year, the world of real estate goes through tons of new changes and innovations. While it might be hard to stay on top of it all, I’ve compiled a list of all the details you’ll want to know. Get ready for some dramatic differences—the 2020 housing market is shaking things up!
Shrinking Square Footage
For decades, American homes have grown larger and larger. Although buyers still want plenty of space, we’re seeing a surprising trend in new construction homes—they’re actually getting smaller.
Since 2014, freshly built homes have seen a consistent decrease in square footage. Wondering what caused this trend? Experts are actually blaming two generations that are often pitted against each other: millennials and boomers. Millennials are embracing smaller spaces for eco-conscious reasons, and they also prefer tinier homes in urban areas. On the other hand, boomers are downsizing after retirement and are more interested in saving than splurging.
A Comeback for Color
The 2010s saw the rise of the modern farmhouse aesthetic, partly due to design icons Chip and Joanna Gaines. While many homeowners are still in love with this neutral style, bolder designs are starting to gain favor once again.
Buyers often try to envision themselves in a space before making a purchase, and it’s easy to capitalize on the latest trends without doing anything dramatic. Try incorporating bold accessories, such as jewel toned pillows or art pieces, to update your space. It’s a simple way to stay on the cutting edge without a huge commitment!
Record-Low Mortgage Rates
If you’re thinking about buying in 2020, you’ll still be able to enjoy some of 2019’s best perks. Experts say that mortgage rates, which dipped as low as 3.49% this year, will likely stay as low as they are now. This is fantastic news for buyers, especially if a new home is on their horizon for next year.
Current projections show mortgage rates remaining well under 4% for the first half of the year. This level of stability only encourages buyers to make a move, and sellers will also benefit from the competitive market.
Everything’s Turning Digital
It’s no secret that we’re in a digital age. In fact, many homebuyers are shocked at the lack of paperwork there is to sign nowadays—almost everything is now completed via e-signature. Almost the entire buying process can now be completed on a computer and smartphone, and this trend is expected to last through 2020.
According to the National Association of Realtors, 81% of older millennials, 80% of younger millennials, and 78% of Generation X used a smart phone when searching for a new home. Additionally, the rise of apps like BiggerPockets, HomeSnap, and Trulia have made it easy to navigate the market. Don’t forget about social media, too—Facebook, Twitter, and Instagram are still popular spots to find the home of your dreams.
Thinking About Buying a Home in 2020?
If you’re getting ready to navigate the 2020 housing market, I’m here to help you make the right choice for you and your family. I’m Sandy Hunter, your Naperville housing expert. I can’t wait to help you buy or sell your home, and I’m only a phone call away. Feel free to reach out—there’s no such thing as too many questions!