2020 has been an interesting year for the Twin Cities real estate market, with the coronavirus pandemic affecting the market trends. If you’re considering buying a home or selling one in 2020, here are some real estate trends you need to know about.
Rise in demand
As per Statistica, demand for real estate is approximately 11.2% in 2020. Demand is expected to rise with more individuals looking to invest in luxury homes. This will create stiff competition in the market among sellers.
Slow rise in prices
Higher demand with the greater competition will mean a rise in prices of homes, with demand being at its peak. If you’re looking to invest now, you’ll be buying at the market peak.
Lower mortgage interest rates
Interest rates on mortgages are likely to be lesser than 5% in 2020, pushing the growth of the real estate sector as individuals interested in making real estate investments are more likely to do so when they perceive the benefits they can enjoy from lower interest rates on mortgages.
Majority of home buyers are millennials
The real estate sector has seen growth and high demand largely due to the decision of millennials to invest in it. They represent the generation that is still young and earning a decent wage, with an understanding of economic policies and enough time to make payments for their investment in the real estate sector.
More smart homes with greater use of technology
Smart homes equipped with various amenities and the latest technological advancements shape the real estate market in 2020. The use of AI tools like virtual assistants is also likely to be on the rise in the real estate market in 2020.