2019 was another great year for real estate! For 2020, market predictions indicate a softening of the booming seller’s market experienced in recent years. However, this by no means signals doom for sellers or real estate agents. In fact, many parts of the country will continue to experience a housing inventory drought. Delaware is one of those areas. In our local market inventory is the lowest it has been in a year. This will continue to allow sellers to get the most of out the new year’s market.
Seller’s Remain in a Solid Position
The real estate market is only softening slightly for sellers. According to our Lead Listing Agent, Kimberly Rivera “I believe home prices will stay level or rise during the first part of 2020, based on watching our local market and what BrightMLS is reporting.” That, combined with the lower than expected inventory rates, means sellers still hold much of the leverage with home sales. In addition, due to lower interest rates, buyer demand remains strong.
Slowed construction creates a bigger challenge for real estate agents to meet buyer demands at a time when housing inventory remains low. Sellers of existing properties can benefit from the slowed construction rates and low inventory numbers.
Find the Right Price to Sell
According to the HomeLight report, despite low inventory numbers and low-interest rates, buyer bidding wars declined in 2019. Agents feel this trend will continue in 2020. In fact, almost half of the agents surveyed said the biggest challenge sellers faced in 2019 was the tendency to overprice the home.
In 2020, sellers must price their homes correctly if they want to compete and attract buyers. Even with low inventory rates, buyers have limits on what they will pay for a home. While it is tempting for a seller to overprice to see if they receive an offer, it hurts the seller in the long-term if the house sits on the market too long and they must reduce the price.
It is a much better strategy to look at the sale’s price for comparable homes in the market and establish a realistic listing price from the start. In fact, the second greatest challenge home sellers faced was increased buyer demands for repair requests. The risk for more repair requests is greater for overpriced homes.
Millennials Make Up the Largest Percentage of Buyers
In 2020, millennials will make up the largest percentage of home buyers. As millennials become older and begin to start families, they are ready to purchase their first home. As a seller, it’s important to understand what appeals to millennial buyers. This is why The Rivera Group has proven marketing plans with this in mind.
Unlike past generations, many millennials value experiences more highly and don’t want to spend their spare time on fancy landscaping. Overall, millennials like minimization and simplicity. Sellers should keep this in mind as they prepare homes for sale.
Recession Fears are Low for 2020
According to the HomeLight report, real estate agents, buyers, and sellers don’t fear a recession is imminent in 2020. However, the concern for a recession in 2021 is greater. Real estate market predications don’t signal reasons for buyers or sellers to fear acting this year. The market should remain solid in 2021 based on total market indicators.
2020 – A Solid Time to Sell
If you are considering selling your home, 2020 is a good year to move forward. With low inventory numbers, favorable interest rates and steady home prices, sellers can have confidence in listing their homes.
Don’t expect to benefit from overpricing. Also, buyer repair requests may continue to rise. However, when listed for an accurate price, in good condition, and with a proven marketing plan, homes should move quickly in many markets across the country.
In Delaware, home price and inventory predictions match national trends. At The Rivera Group, we had an excellent 2019 and predict success in 2020.
Contact The Rivera Group to Sell Your Home
The Rivera Group works with homeowners in Kent County, Delaware and throughout the state. We have a track record for successfully helping both buyers and sellers meet their real estate goals.
Contact us today to discuss the best strategy to list your home in 2020.