Presented By: Realty ONE Group
Realty ONE Group’s CEO Kuba Jewgieniew Optimistic about 2020 Housing Market
It’s that time of year – time for people to start making predictions for the 2020 housing market.
Most economic experts will be conservative, skeptical and steer entirely clear of being too positive about what we’ll see in the next 13 months. But why wouldn’t we look at the economic indicators and current data as hopeful and positive?
“There’s no reason to not be excited about the U.S. housing market in 2020 especially because of an abundance of positive indicators,” said Kuba Jewgieniew, CEO and Founder of Realty ONE Group, a progressive real estate franchisor opening new offices across the U.S. and internationally. “Buyers and sellers don’t need to fear the news they’re hearing. They need the counsel of a great real estate professional to know that this is an excellent housing market.”
No. 1 – First-Time Homebuyers – Come on In!
Deterred last year by skyrocketing home prices and low inventory in many markets, first-time homebuyers stepped out of the way. But, a recent TransUnion estimate released in late October indicated that favorable economic conditions, including low unemployment and low interest rates, will send an estimated 8.31 million to 9.2 million first-time homebuyers into the market in the next three years.
“Americans still want to own a home and it’s our job to help them get them settled,” said Kuba Jewgieniew. “Our younger generations wisely know that a house is a fantastic investment and that the earlier they purchase, the greater the return on investment.”
No. 2 – How Low Can You Go? Mortgage Rates Still Dropping
Because wages continue to grow at a rate higher than inflation, people are gainfully employed, making money and feeling good about it. Good enough to invest it on something like a 30-year mortgage that, according to Freddie Mac averages 3.69% right now. Let’s not forget that fixed-rate mortgages in the early 80’s inched up to 19% and people were still buying homes. Now that’s perspective. Investors and economists alike expect the interest rates to stagnate in 2020, which means there’s a lot more positive to come.
No. 3 – Loosening Inventory, If Even Just a Little
While inventory will continue to be tight, especially in popular markets around the U.S., there’s a chance that new construction will help. Builder confidence is at a 20-month high, according to the National Association of Home Builders (NAHB), and housing starts and building permits both inched up last year. While the relief may be minimal, anything helps.
“While the housing market tends to slow this time of year, this is actually an excellent time to begin your home search,” said Kuba Jewgieniew. “Start narrowing down the neighborhoods you’d like to settle in, know the type of home you’ll be able to afford and make the list of concessions you’re willing to make once that perfect house hits the market. Then you’ll be ready to pull the trigger.”
No. 4 – Great Tech Makes it More Fun
Sophisticated technology is helping buyers and sellers be smarter about how and where they can buy a home. Drone videos, virtual tours and video walk-throughs are making it all the more fun too. But when it comes to offers, inspections and contracts, a real estate professional is key to making it all that much easier.
No. 5 – Being a Great Real Estate Pro is Still Where It’s At
Yes, technology is amazing. It’s positively impacted the real estate industry and will continue to do so. But the game still belongs to the real estate professionals and those who work, grind, grow and build relationships. These are the pros who will continue to show the value that a committed, knowledgeable and caring person brings to a transaction. These are the people who leave an impression, benefit from referrals and impact the lives of their buyers and sellers. As real estate brokerages, we need to support these tremendous real estate professionals and give them every opportunity to succeed.
“It takes a committed and experienced real estate professional to help guide each family to get top-dollar when selling their house or to find the ideal home in the right neighborhood,” said Kuba Jewgieniew, who would know. Before he created Realty ONE Group, one of the fastest growing real estate franchisors today, Kuba Jewgieniew was one of the top-producing real estate professionals in his market. “The right real estate professional can make all the difference in winning that perfect home.”