The Housing Market has been on an overall increase in profit, exposure, and economic advantages. Many people are venturing into real estate as an investment opportunity, employment, and others become proud homeowners. Trends in the housing market could go in favor of the seller or buyer. Sometimes both parties enjoy from the change in the real estate market
Being a seller, knowing the market, your competition, the buyer, and their desires will give you an upper hand on when and how to get the best deals.
Research made in the year 2019 on buyers showed Millennials were leading as the largest group of home buyer. Millennials know the trending-everything and know precisely what they want, how they want it, and where they want it after constant research through the internet.
So, as a buyer, it is smart to get your home listing on the internet, with high-quality videos and images of a home tour. The following are the trends to take note of in the Housing Market:
HOW IS THE PRICE DOING? THE PRICE IS ALWAYS RISING!
Home prices are always increasing, whether slowly or at an impressive rate depending on the surrounding factors. Covid 19 has created uncertainty in the market. Yet, the housing market has been able to make a profit and still increase regardless.
Presently, the growth rate has been stable and even doing better.
As a seller, you should pay keen attention to your competition and ensure your home and offer are unique and different from the rest. With the increase in home prices, a better profit is plausible, and be sure to sieve for the best buyer, offering the best price.
For a buyer, never rush into buying a home with such increasing prices.
Take your time and work through your budgets, get a great mortgage counselor, and create a home saving account. Changing locations could save you more money, so be sure about where you want your home and how much hurt it’ll cause your bank account.
MONITORING THE CHANGE IN EQUITY; INCREASE OR DECREASE.
Equity is a factor to pay attention to as it plays an essential role in the home for sale. Equity increases as your mortgage decreases; it also increases when the value of the home increases.
A decrease in equity results from the drop in the value of the home because of the slow pace in paying off the mortgage’s principal balance. Such a reduction will not favor the home on the market.
THE HOUSING MARKET IS NOT CRASHING
Consistently, the real estate market has been able to rise above faltering economics and recessions. A notable trend in the housing market is that it is not crashing anytime soon.
Regardless of how sellers and mortgagors have tried to insinuate a crash relying on economic reasons to sway buyers and mortgages; it is clearly not true.
And it is an excellent form of investment.
The following are more trends in the housing market you should take note of;
- The uncertainty of the market and economy due to the pandemic has had companies and organizations needing managed spaces with leases for the short term. Focusing on such areas will serve as a bonus to you as a realtor.
- An environment that supports the health’s positivity (mentally and physically) is hotspots for home buyers.
- The increasing need for more experienced and well-trained agents for a better transaction between the buyer and seller is a trend that needs attention.
- The rapid rate at how brokerages are being wiped off the street by technology. For a brokerage to survive, it needs to be backed by larger companies, venture capitalists, and corporations.
- Increasing the nation’s inflation rate above the benchmark of 2% affects the interest rate on real estate debt.
It reduces this debt and inflates existing asset prices. As an Investor, I’ll urge you to pay attention to it
- If raised soon, the interest rate of 2% by banks will become impossible to continue. Thereby a raise in the interest rate will not favor the buyer as it’ll make it harder instead.