The new decade is less than a month away, but 2020 is bringing with it uncertainty for real estate professionals & mortgage brokers, as we see rising prices, slowing mortgages, and inventory shortages signal the end of the boom market we’ve enjoyed for the last few years.
For Savvy REALTORS® & mortgage professionals, the changing market can be a good thing: as we shift into a buyer’s market, less experienced dilletantes will exit the industry, allowing true professionals to expand their market & grow despite the slowdown. That’s only true if you’re prepared, though, and part of that preparation is cutting costs, streamlining your processes, and staffing up for the extra work required to make each sale.
If you don’t already have a virtual assistant, this is the time to hire one. Choose MyOutDesk – the real estate industry’s #1 choice for virtual assistant staffing. Schedule a Double My Business Strategy Session with us now and we’ll show you exactly how to take charge in the changing market and stay on top of the chaos.
Make sure to schedule your strategy session, and in the meantime pay close attention to the Top 3 trends for 2020 below, which will help you prepare for the changes coming to real estate in the new year.
Home Prices Are Still Rising Slowly
In 2018 prices rose by 5%, and in 2019 that slowed to 3%. We’re expecting to see even less increase in 2020 with prices rising around 2.8%, which shouldn’t be surprising with media like CNBC running stories about overpriced home values. Again, we’re moving into a buyer’s market, so as an agent you’ll want to learn how to gracefully work with your sellers to help them with price reductions when necessary – and as things become more competitive, this skill will become more important.
Higher prices do mean substantial profits for sellers, but it also means fewer offers because many buyers simply can’t afford them. As a real estate professional, you need to brush up on effectively navigating these waters to get your sellers the best possible price, while simultaneously ensuring that your listings don’t sit on the market until they collect dust.
Mortgage Interest Rates Are on the Decline
Over the course of 2019, mortgage rates have stayed under around 4% for many types of loans, and in 2020 the prediction is interest rates will be approximately 3.7% for a 30-year mortgage and 3.2% for a 15-year mortgage. Rates have become more competitive because the market is tighter, but they can’t sink forever, so look for other ways to make yourself agent or mortgage broker of choice.
The best way to do this is by providing clients and prospects with rapid followup & stellar service. In a competitive market, it pays to respond quickly, be informed of your clients needs, and have an array of options available for them. If you’re late, they’ll already be gone – especially when it comes to online & digital interactions, which are becoming the medium of choice for today’s homebuyers.
Most Home Buyers Are Still Millennials
Around 37% of last year’s homebuyers were millenials – born between 1980 and 1998. This younger generation grew up with the internet, and uses their smartphone like an extension of their own body when it comes to looking for homes. They’re all over social media, but along with the channels you already know, they’re on Twitch, Discord, Telegram, and a ton of alternative networks you’ve never heard of.
Brush up on your technology skills, especially when it comes to digital signing processes, presentations, etc. It’s nice to have a pre-listing package you can hand them, but one you can email might be even better – and this group is going to want to see lots of photos of their prospective home online as well.
Feeling some trepidation about the changing market? Schedule a Double My Business Strategy Session with us now and we’ll help you build a rock-solid plan to grow your business through 2020 and beyond – regardless of market conditions!