Slow and steady will be the name of the game in the new decade. All reports indicate that 2020 will be a positive year in real estate.
With a surge in consumer spending towards the end of 2019 the economy remains on a steady path. Healthy consumer spending is a sign of consumer confidence. Coupled with low unemployment rates and low mortgage rates will contribute to economic growth. Growth will be slower than what we’ve experienced in the past, but growth will occur for the next year.
Numerous Economists agree that there will be a high buyer demand with available inventory in 2020.The upcoming year will have a few changes with buyer trends. There will be an increase in interest in smaller, more affordable homes for the young millennial buyers. These buyers prefer living in more urban areas where they can walk to town and amenities. Smaller homes are more eco-friendly with less maintenance. There are also a group of buyers looking to downsize into smaller homes. They do not want to keep up with the demands on their bigger homes, so they will look to move into smaller more efficient homes.
Mortgage rates will stay low which will create high buyer demand. The good news is interest rates are low, the not so good news is that buyers will absorb the inventory and the market will remain competitive in our surrounding areas. Inventory may get tight in some markets but as long as there is a steady flow of houses coming on the market sales will remain strong.
Color will play a big factor in 2020! We can say 'goodbye' to grays and hello to bright walls and bold prints! The new millennial buyer will look for more playful and creative design.
In the New Decade, home value growth will be slower, more steady and more sustainable. With lower interest rates, low unemployment rates and high buyer demand, we can look forward to 2020.
Prominent Properties Sotheby’s International Realty offers a team of more than 625 licensed professionals and staff working out of 14 offices throughout Northern and Central New Jersey. Regional Offices are located in Summit, Short Hills, Alpine, Edgewater, Englewood Cliffs, Franklin Lakes, Jersey City, Hoboken, Montclair, Montville, Ridgewood, Saddle River, Tenafly and Westfield.
For more information about Prominent Properties Sotheby’s International Realty, visit prominentproperties.com, call the Summit regional office at 908-273-8808, or stop by at 309 Springfield Avenue.