The real estate industry projections look positive at the beginning of 2020, and sellers are in a very good spot to move forward. Comprehending what’s going on in the real estate market with a new year underway will help inform how you approach selling your house. Now is a perfect time to go over what home sellers need to know about the evolving real estate market in Lincoln.
HOME PRICES ARE SLOWLY RISING
Home prices rose by an average of 5 per cent in 2018 and prices increased by 3.3 per cent in 2019 on average. While 2019 saw the significant decline in production, it was still a year of steady price increases.
The 2010s were also a decade of strong increases in real estate values, but that starts declining as we reach a new decade. We expect home prices to keep rising slightly for now, but there are no signs of rapid acceleration anytime soon.
For this is likely the tail end of the growth period, sellers on the real estate Lincoln business should be in a great position to increase future income.
INTEREST RATES ARE TEMPORARILY DECLINING
In 2019, the Federal Reserve cut interest rates on immovable property several times, partially due to economic tensions between the United States and China.
For 30-year mortgages, the most common type of traditional mortgage, economists expect the Federal Reserve to hold real estate interest rates at 3.7 per cent. This is good news for both home buyers and sellers, as it means less long-term contracts for buyers and more buyers looking for the sellers ‘ homes.
MILLENNIALS ARE THE BIGGEST BUYERS
Now that all the Millennial generation has grown up, they are looking into buying their first homes and have quickly become the largest group of home buyers on the real estate market in Lincoln.
That means you can do some things to make your listing more appealing to that particular category of home buyers.
If selling your home with a comprehensive collection of pictures, and maybe even a floor plan and 3-D virtual tour, it is incredibly important to have an online listing. In both educate and inspire prospective customers, adding on the floor plan and 3-D virtual tour goes the extra mile.
Millennials are much more concerned with the position of a home in the real estate market Lincoln to transport children to school and events than they are with the size of the home. Make sure you highlight any nearby shopping, restaurants, and schools.
BABY BOOMERS ARE THE BIGGEST SELLERS
While Millennials is the largest group of home buyers, Baby Boomers is becoming the largest group of home salespeople. Due of the aging of Baby Boomers and either moving into community housing or trying to downsize, this is becoming more normal.
It can change the balance of available property on the market for Lincoln real estate considerably, depending on how many people sell in comparison to buyers.
THE CURRENT HOUSING SHORTAGE MAY SPUR NEW CONSTRUCTION
Last but not least, we are facing a severe housing crisis in this country at the moment and this weighs heavily on metropolitan areas. Some cities are urgently trying to solve this problem by promoting new building to provide homes while keeping rates affordable as well. While the Lincoln area is unique in its own respects, the national housing market also follows a lot of the same patterns.