The current state of the economy has just about everyone worried and wondering. Aside from the health fears that many have, a lot of people are also wondering what economic impact the current
Top 5 Trends Affecting Real Estate in 2020
Home Prices Rise, Shortage Continues
Any buyer that’s been looking for a home can tell you how difficult it is right now to find a home in their price range. Several factors contribute to this trend. Baby boomers are staying in their homes longer, and we have tons of millenials looking for their first or second home. So we have lots of demand, but not enough supply. This is great for sellers, but buyers want to be prepared for it to take several months to find the right property for the right price.
Interest Rates Continue to Decline.
Another reason we are seeing such an influx of buyers is because interest rates are staying very low, making it incredibly affordable to obtain a mortgage. As of writing this, a 30 year fixed rate mortgage has an interest rate of 3.62%, and 15 year fixed rate mortgage has an interest rate 2.87%!
Millenials Are Buying!
As home prices continue to rise, so do rent prices as well. Many millenials are finding that it’s cheaper to buy, rather than rent. Not only that, but it can be hard to find rentals with enough space for children, or that allow pets. So it makes more sense for this demographic to purchase their own home.
New Construction Boom
Finally, after years of trying to recover from the recession, the new build industry is finally getting its foothold again. The Mortgage Bankers Association said that applications for new construction was up 27% in November of 2019, and the Fannie Mae Economic and Strategy Research Group predicts builders will expand production by 10% in 2020. A strong economy and the current housing shortage will both continue to contribute to the new build industry.
Our Economy is Rocking!
While not every market may continue to see such strong growth, I highly doubt we will see a decline in Columbus and the surrounding areas anytime soon. Many new businesses have come to Columbus, such as Amazon, Facebook, and CoverMyMeds, bringing new jobs, and therefore, new people to the Columbus area. Businesses such as these have caused a lot of Columbus neighborhoods that were in decline to start seeing new life injected into them. The National Association of Realtors recently named Columbus as one of the Top Five Markets they expect to outperform for the next 3-5 years.