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By Vicky Scott
Special to the Financial Independence Hub
The real estate industry has always been promising. Though the year 2019 saw a downfall in real estate, the industry still seems to prosper and shine in 2020. Some of the prominent property trends to look forward to this year are discussed below:
Technological transformation
Technology has always played a major role in bringing transformational change in any industry. Real estate is no different. Technology has brought a change in almost all parts of the real estate sector.
Starting from construction to the purchase process and continue until after-sale service, technology has helped in improving the construction quality and fastening the construction process. Similarly, technology has changed the entire buying process. The concept of augmented and virtual reality has enabled customers to view the property without even visiting the site physically. Numerous forex software tools are another gift of technology to the real estate industry.
Conventional loan requirements less stringent
Getting a home loan has become much easier compared to what it was a few decades ago. Less strict rules and easy loan approval process has made property buying easier. Financial institutions are boosting property purchases by lowering credit scores, as well as the down payment. Potential buyers who were not eligible for taking a loan in the past can now get the loan without facing many difficulties.
Mortgage rates expected to remain lower
Mortgage rates play a critical role in the growth of the real estate industry. Lower the mortgage rates and more people would think about buying a property. Stability in the mortgage rate is another factor that stimulates the future of the real estate industry. The rates were quite lower in the year 2019, and many economists believe that this trend will continue in 2020 also. This is good news for interested buyers.
An increase in mortgage rates acts as a demotivating factor for potential buyers. Lower the mortgage rate and enthusiasm rises among property buyers. People prefer buying property when mortgage rates are lower, as instalment payments are that much lower.
Return of suburbs
There was a time when people preferred cities over suburbs. Well, the trend is changing. Reports have shown a constant increase in the suburb’s population. One of the major reason for this shift is affordability.
Homeowners, especially with families, prefer purchasing properties in the suburbs as they find it a much better place for raising their kids. Suburbs allow mobility, and the houses there are more affordable. However, the craving for city amenities is still there. To meet these needs of buyers, the concept of hipsturbia communities is becoming quite popular in the real estate industry. This trend can be seen on the outskirts of cities. They are spacious and easily accessible. This is more popular among families, as they are not far from the city but have all the major qualities of suburbs.
Industry will continue to grow
Studies have shown that that the millennial population, around 74 million, are a promising new source of home buyers. Most of the people of this generation are earning above average or good household incomes. This makes them more eligible for purchasing a property. Many would be looking forward to purchasing their first house in 2020.; hence, economists believe the real estate industry will continue growing in 2020.
Growth of the iBuyer
The demand for iBuyers is increasing day by day among buyers. Most of the top iBuyer program companies are planning to expand their business in various new markets. It’s the new swag in the real estate industry. With the program being launched in the new markets, one can expect an increase in the number of buyers.
Vicky Scott is a financial analyst and currently works as a writer for MyFxTools. He writes about forex tips, research and trading strategy on blog Inside Forex trading. He has been contributing articles to Engine Forex for years, with topics focusing on the different areas of forex trading – from a beginner’s guide to an expert’s point of view.
