2020 has been a year of changes, development, and growth within the real-estate industry resulting in major shifting housing trends. With so much going on within the country, you may be wondering how the impacts of the crisis are causing change within real estate trends, and Florida housing trends. Surprisingly enough, the current market average home price in Jacksonville Beach sits slightly above $395,000, with a very hot sellers market! There’s been a 5.6% increase in 1-year changes to home prices. Will 2020 continue on this upward trend? Will the current pandemic continue to cause consumer behavioral changes? Whether you’re in the market to buy, or sell, here are 5 major shifting housing trends you need to know.
Median Home Prices are Growing
As we continue to see rates fall, there’s been a seen surge in buyers in the market. As buyers start to outnumber sellers (see sellers market above), this causes an intense competition in the market, assisting in the growth we’ve seen within the housing market prices. If you’re in the market for a bargain, now may not be the time to shop (unless you want to take advantage of historically low interest rates on your mortgage!). Since COVID-19 has hit America, there’s actually been an increase in the housing market – and nationally, median home prices hit an all-time high in June.
Buyer’s Requests Are Changing
As the majority of Americans are still experiencing remote-work, there’s been a seen shift in client requests and requirements for their new homes. As an example, NAR research has shown that the top request of buyer’s at this time is a home office. Along with this, there’s been a growth in demand for a sizable outdoor space, including a pool, garden, or just more outdoor space to stretch and enjoy the safety and security of your own home’s outdoor space.
Mortgage Interest Rates Are Ultra-Low
Even before the pandemic, mortgage interest rates have been trending downward. We’re now seeing rates in the low 2’s, for 30-year fixed conventional mortgages and refinance, and VA mortgages and IRRRL! Market experts believe that interest rates will continue to stay where they’re at until the US economy returns to normal status. Future Home Loans is currently equipped with Conquest Mortgage, an exclusive program to Mortgage Brokers, with some of the lowest rates in the country ranging from 2.25-2.375% on VA and 2.5%-3.0% on Conventional!
Growth In Millennial Buyers
Millennials currently comprise the LARGEST generation in the United States, according to PEW Research. In the past, this generation has seen the inability and ambivalence to purchase homes, are growing older and reconsidering their goals. The largest bracket of this generation are turning 30 this year, and beginning to start families, reconsider their life goals, and financial goals. So what’s this mean for the market? According to several studies, millennials have typically enjoyed bustling downtowns with shops and dining at every corner instead of the traditional picket-fence suburbia. This shift in consumer trends and priorities may cause a motivation for millennials to consider new options in housing. If you’re a seller, this is great news for you as 72 million millennials (age 23-38-year-olds) in America right now are shifting towards the buying market, and graduating from renting life. Upgrade your online listings, highlight perks of the home rather than the size, and know popular features in the market!
Lack of Foreclosure Crisis
A major contrast from the current recession to the Great Recession, that shouldn’t be ignored, is that due to the mortgage forbearance plans rapidly put into place, less American’s had to foreclose on their homes. Nearly 4 million Americans took advantage of the opportunity to delay their monthly mortgage payments for up to one-year to assist with their financial hardships. The CARES act, passed in March 2020, made it far easier for homeowners that found themselves struggling from economic hardships due to the COVID-19 pandemic to stay in their homes.
Whether you’re a real estate agent, a home-buyer, or a seller, take advantage of the above housing trends and shifts by partnering with a professional mortgage brokerage that is armed and ready to battle the trends as your partner. Our team has the ability to match you with agents that are some of the best in the North Florida business, and provide you with top-notch mortgage assistance and advice throughout the entire process. We have access to historically-low rates, that will assist you in financial development throughout your future! Ready to get started on your home buying journey, or have further questions regarding your home mortgage opportunities? Contact us today.
