This is a list of 20 trends I see happening in real estate in 2020....although it is to be noted how many predictions seem to be wrong these days....
1. The first half will be busy. The second half will be distracted by the Presidential Election.
2. San Francisco prices will be flat or slightly up from 2019.
3. The supply of homes will remain low and demand will continue to be high.
4. Properties that check all the boxes will continue to garner lots in interest with multiple bids and selling over asking.
5. Winning offers will have more contingencies compared to what we have seen in the last decade.
6. Both under-priced listings, when the seller is not willing to sell at the listed price, and overpriced listings may take longer to sell, and often only after price adjustments.
7. Sellers will expand on home improvements before selling as buyers become less inclined to buy homes that need work.
8. Mortgage rates will remain low but could come under pressure as rising energy costs and wages trigger inflation.
9. Climate change is now a buying factor. In high risk areas, fire and flood insurance policies will continue to rise, or insurers may stop providing insurance altogether, which means it will be nearly impossible to secure a mortgage in those areas.
10. Recovery Technology: recovering from storms, floods, fires, etc will require technology to speed things up and minimize damage and disruption.
11. Urban migration will continue as walkability increases in desirability. However, suburban migration will expand due to affordability concerns, especially for millennials.
12. The trend of people moving outside California to cheaper states will continue to get bigger with economic strains that are making it harder to afford living here.
13. The shortage of affordable housing options will expand. Smaller, more affordable homes will have extreme competition from first-time buyers, investors, and down-sizing baby boomers.
14. The lower end of the market will see the most price increases due to limited inventory and high demand.
15. Buyers will seek homes scaled to their needs, avoiding homes with rooms and features they are almost certain will never be used.
16. Sharing amenities and services will grow in popularity. The need for granny flats or accessory dwelling units will grow to accommodate aging parents....or aging kids.
17. Sustainability will become even more of a focus, reducing waste and being more environmentally responsible. Because we care about the future of our planet AND to reduce ownership costs.
18. Smaller towns and suburbs will city-fy in their attempts to keep people from moving to more urban areas. Urban areas will attempt to create more of a village feel to prevent suburban flight.
19. Bigger, taller: expect zoning laws to be modified to allow more building density to bring down housing costs and reduce commutes.
20. A US-China Trade deal may lower the cost of some building supplies, offsetting rising labor costs. However, it will not be enough to bring down housing costs.
