There are a few real estate trends that have been happening lately that you should be aware of. Whether you’re thinking about buying or selling a home in the near future, it’s important to be up-to-date on the latest market conditions. So, without further ado, here are the major real estate trends to keep an eye on.
The market for starter homes is heating up
The market for starter homes is heating up, which means that houses are being snatched up faster than developers can build new ones. This has caused the prices of starter homes to increase rapidly over the past few years, with no signs of slowing down.
However, just because it’s difficult to find a starter home doesn’t mean buying a bigger house is out of the question. Although prices are still high, they haven’t increased as rapidly as starter home prices have. And although you might have to buy a fixer-upper to save money upfront, it could pay off big over time if you’re able to sell your house for more later on because of how much you saved upfront.
Home prices are continuing to rise rapidly
Across the country, home prices have been rising at a very rapid rate. In fact, in some areas, the price of buying a house is increasing by nearly 20% per year. If you’re looking to buy a new home and need financing, it’s going to be increasingly difficult to get approved for a mortgage because you just can’t afford what the home is actually worth.
Don’t worry too much, though. There are hard money loan companies out there that can help with the cost of buying a home. Also, there are some home builders that offer rentals on newly-built homes. If you need a place to live while you save up money, this is a great option for you.
On the other hand, if you already own your house and are looking to sell, this trend should make it easier for your home to sell because people can afford more of what you’re selling it for. However, don’t think that this trend will last forever. Some experts expect house prices to level off.
More people are opting to rent instead of buy
Some people may think that this trend is because people can’t afford to buy homes. And while that’s true, it’s also true that many people are putting off buying a home until they’re more financially stable. After all, renting is significantly cheaper than owning a house when you take into account the expenses of property taxes and maintenance.
However, this trend isn’t all bad news. It’s opened up more opportunities for real estate investors to buy rental properties. If you’re interested in buying an investment property, don’t hold off too long because the market is expected to remain the same or improve over the next few years.
Residential is bigger than commercial
Although this trend is starting to level off, it’s still important to keep in mind. Historically, commercial real estate has been worth much more than residential property. However, that trend is changing. In fact, the opposite is happening now in several major cities throughout the world.
This means that buying a commercial property rather than a residential one could be a better financial decision for your investment portfolio. So, if you’re looking to invest money in real estate, keep this trend in mind.
