Expert predictions to help you navigate the Hanover real estate market in 2020.
Hanover real estate remained relatively steady from 2018 to 2019 and is expected to continue growing on a slow-but-steady pace through 2020.
Virginia real estate agents are enjoying the consistency of the market. If you don’t already have your Virginia real estate license, 2020 might be a good year to launch your new Virginia real estate career in Hanover! The market is strong, but not so strong that everyone is flocking to join the real estate game. These market conditions have kept the level of competition manageable for new agents.
Let’s look at some of the biggest Hanover real estate trends for 2020 and discuss how these trends will affect you and your clients.
Home Values Will Increase Only a Little
The median sales price for Hanover County homes as of October 2019 was $311,204, which is right around the same amount as the median sales price from a year prior.
While the median sales price may not have increased, the overall value of homes in Hanover County still enjoyed a modest increase of 2.3% according to the Zillow Home Value Index (which estimates the median value of all local homes, as opposed to using the sales prices of recently sold properties). The index is expecting to see home values rise by another 1.8% over the coming year.
While the Hanover market may not be as strong as neighboring Richmond, any growth is good news in an economic climate that’s seeing some markets start to flatline or even decline.
More Buyers Will Compete for Fewer Listings
Despite the relatively slow property value growth, Hanover County is still experiencing a bit of a seller’s market.
Inventory in October 2019 was down 14% from the year prior, meaning there are fewer homes available for the many people who want to buy. And with the relatively high rental rates of $1,654 in Hanover County, lots of renters want to become buyers. At this point, if your clients plan to rent for more than just 2.5 years, they would be financially better off buying.
If you’re a Virginia real estate agent representing buyers, make sure your buyers know to bring their highest offer with the fewest contingencies. You want to give the seller every reason to accept your buyer’s offer, especially when multiple offers are very possible.
Buyers Can Take Advantage of Low-Interest Rates
Thanks to some uncertainty in the global economy and lower-than-expected inflation in 2019, experts are predicting that we’ll remain at historically low mortgage interest rates through 2020.
In fact, six of the top industry leaders are all projecting interest rates to remain under 4% through 2020 on 30-year-fixed mortgages.
If you have your Virginia real estate license, you can market the benefits of low-interest rates to buyers who are still on the fence. An interest rate increase of just 1% can lower a buyer’s purchasing power by 9-11%! For your clients to make the most of their purchasing power, they should buy in 2020 while the interest rates are still low.
Overall, the Hanover real estate market experienced a stable 2019 and is expected to continue on this easy-going path in 2020. Enjoy it!