If you’re looking to buy or sell a home in the next few months, you may be hesitant to make a move considering the uncertainties that the COVID-19 pandemic has caused within property markets. However, these Forbes’ predictions for the real estate market in 2020 provide an outlook based on which you can make an informed purchasing or selling decision.
1. Sustained Demand for Homes
Home sales will survive the negative economic impact of the COVID-19 outbreak over the short-term. As baby boomers and millennials drive demand for properties, new homes sporting modern architectural designs will come up. You can look forward to opportunities to buy a distressed property or a new home at a discount towards the end of 2020.
Overall, experts expect home sales in 2020 to approach 2019 levels.
2. Distressed Properties to Increase
As many homeowners get behind on their mortgages, the number of distressed properties will rise. Therefore, you can expect a sharp increase in foreclosures, bank-owned homes, and short-sales.
3. Refinance to Remain an Attractive Option
Refinance will remain an attractive option for homeowners seeking better mortgage terms. Due to COVID-19 related factors, mortgage transactions will go digital, resulting in smoother and real-time consumer experiences.
4. Contactless Tech Adoption to Increase
One of the most interesting predictions for the real estate market is that stakeholders will increasingly adopt contactless technology to minimize human interactions. Potential buyers will be offered keyless entry systems, automated messaging systems, voice-activated appliances, and more as COVID-19 control measures.
Despite the COVID-19 threat, more potential buyers will still want to see a home in person before placing an offer. Nonetheless, real estate virtual tours will remain an option for buyers who prefer to explore properties of interest remotely.
5. Home Office Demand to Rise
Potential homeowners are increasingly showing a preference for buildings with adequate spaces and amenities for home offices. Therefore, the demand for homes with features that support remote working will continue to rise over the next few months. Features such as an open floor plan and a serene location will significantly influence home-buying decisions.
6. Preferred Equity Fund Offerings to Increase
COVID-19-related financial challenges are partly behind the current convergence of investors’ and investment property operators’ interests. For starters, risk-averse investors seeking a higher fixed income view such properties as a safer bet. They’re more inclined to acquire a stake in these types of real estate investments in the form of preferred equity.
On the other hand, investment property operators with limited financing options are increasingly turning to preferred equity funds to make up for any shortfalls.
These real estate market predictions for 2020 clarify critical uncertainties you may face as a home buyer or seller in California. However, if you need any help with real estate financing, contact Andraya Coulter for a personalized deal.