Do you want content like this delivered to your inbox?
Share



Share

2020 Buyer Trends

Kevin Yu

Kevin might be a real estate fanatic and expert, but his love of the housing market in Toronto and the people that are intermingled within it is just ...

Kevin might be a real estate fanatic and expert, but his love of the housing market in Toronto and the people that are intermingled within it is just ...

Jan 20 4 minutes read

Another year has come and gone, and with a new year comes new goals. Whether you've decided this is the year you're going to sell your home or if you're just considering it, you need to know which buyer trends to expect in 2020. We've laid out the most important trends for this year and how it could affect your decision as a seller.

Trend #1: Millennials are still on the move

Millennials are anyone born between the years 1981 and 1997 and the largest majority of them will be turning 30 in 2020. This year, older millennials will be starting to think about settling down, having kids and buying their first home. By the time we're halfway through 2020, millennials will account for more than half of all mortgages taken out which is greater than all other generations combined.

With millennials looking to buy this year, most older generations such as the baby boomers and Generation X aren’t going to be making moves anytime soon. Most may still be raising kids or not ready to retire yet, which means they are staying put. So for 2020, it's all about millennial homebuyers. 


What this means for sellers:

  • If you’re considering making upgrades to your home before you sell, know what millennials want. The features at top of their lists include a patio, hardwood front exterior, a laundry room, and a walk-in pantry.
  • Millennials are less concerned with how big a home is and more concerned with how far it is from work and what school district the home is in. According to NAR, most millennials are less willing to compromise on the quality of the neighborhood and schools when buying a home.
  • Almost all millennials search online when looking for a home, and 80% of them actually found their home on their phone. Be sure that your online listing photos are high quality and your listing can easily be found on the major consumer search websites.

Trend #2: Prices & iBuyer's are on the rise

In As of December 2019, home prices rose by 10%.  It's one of the largest increases in a while.

The iBuyer trend is also predicted to increase this year. An iBuyer is a real estate company that makes an offer on a home within days. 


What this means for sellers:

  •  With home prices still on the rise, you may make a profit on your home if you sell this year. Make your home really stand out and if you’re not in a hurry to sell, don’t be afraid to wait for the right offer.
  • Although "location, location, location" has been the slogan for the past few years, it seems that buyers (especially since millennials are now the largest group of homebuyers) are willing to comprise location for a more affordable option.
  • With iBuyer companies on the rise, it's important to know what you're up against. iBuyers basically take the human experience out of selling your home and you're likely to get a not-so-good offer. If you're not in an absolute rush, don't take the easy way out. 

Trend #3: Mortgage interest rates

Right now, mortgage rates are around 2.99-3.09% right now - give or take. Rates have gone up to end the 2019 year and now are slowly trending back under 3% again. 


What this means for sellers:

  • Lower interest rates means buyers will be more motivated to buy sooner rather than later. A mortgage is a huge financial commitment, so if someone has been thinking about buying and sees lower interest rates, this may push them to commit.
  • Nothing in life is certain so it's important to keep your eye on the rates. 

Curious about what
your home is worth now?

Get an accurate home value report from us. 

Get Your Report
We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info