Trends In The Market
Whether you’re a potential investor or a person looking to purchase a new home, it’s important that you are aware of the current real estate development trends. Things can change quickly. The more you are aware of the shifts in the patterns, the better off you will be in the long-run.
We’ve all seen the fluctuations before. Take the fall off of the housing market that occurred a few years ago for example. Before the crash, the real estate market was booming. Unfortunately, when everything fell to pieces, many investors and home owners found themselves in a tight position. Investors ended up stuck with households and properties that they couldn’t sell for anything near what they paid for them due to all of the foreclosures that were available. It’s hard to get someone to pay full market price for something that they can easily purchase for nearly half of the price.
If You Are A Home Owner
Home owners found themselves in a similar situation when it came to trying to sell their homes. Unless they were willing to take a hit and lose a lot of the money they had put into purchasing their home, they found themselves stuck where they were.
Make sure you don’t ever get caught in this situation. The best way is to work with a professional real estate agent and broker. For example, if you were looking for someone in Teton County, we highly recommend working with Jackson Hole Wyoming real estate professionals.
Needless to say, this is not a position that anyone wants to find themselves stuck in. For this reason, I thought it would be a great idea to share some information on the projected real estate development trends for the year 2017. Unfortunately, it seems like real estate may be leading in a bad direction again. It’s projected that the qualifications for loans are going to become loosened again. This is exactly what resulted in the fall off of the market last time. Loans were being handed out to people who could not possibly pay them back. This led to a market crash rather rapidly.
However, this isn’t a bad thing for everyone. In fact, it can be a good thing for those who are looking to purchase a new home. However, in my opinion, it may be a better idea to wait for the foreclosures to start popping up again than it is to get yourself stuck in a tight position. Never forget, a bank doesn’t care about your financial situation. They only care about getting their money back. It’s also projected that interest rates will go up this year. If you know how loans work, you will surely be aware of the fact that higher interest rates mean more money being paid back. For this reason, it is advised that you make as big of a down payment as possible and also pay extra on each of your mortgage payments. The sooner you pay your mortgage off, the cheaper it will end up being. If you are an investor, it’s important that you are aware of the fact that supply and demand will be tipping in an unfavorable direction. The current trend shows a sharp increase in supply. Since the market has been heading in an upward direction, more and more homes, as well as commercial properties, are being built.
Supply & Demand
As any investor likely knows, the more supply there is, the less demand there is. This, unfortunately, lowers the amount of money a person can ask for on a property. Investors will likely have a hard time making a significant profit off of a property because there will be so many options available. Unless you can find a fantastic deal on a property that you plan on selling, it’s likely that you will barely make a profit or even break even.
Whether you are a person looking to purchase a new home to live in or an investor trying to find a piece of real estate to flip, the best place to watch is medium sized cities with affordable housing and an abundance of available jobs. There has been a significant increase in these types of properties being purchased. It makes a lot of sense if you think about it. After all, people want to be able to buy a property that won’t leave them completely broke while living close to work. Anyone who has ever had to commute a far distance to go to work is likely well aware of how much of a hassle it can be. There also seems to be a growing trend in purchases, as well as sales, on buildings that can be re-purposed and used as a multi-family or multi-tenant home. Investors, as well as your standard home owner, can benefit from this trend. When it comes to the investment side of things, it shouldn’t be hard to fill your property with tenants and create a sustainable form of income. While renting out a property can be a bit of a hassle at times, especially when it comes to the upkeep and having to chase down rent money, it can also have many upsides as well.
Rentals Vs. A Primary Residence
A home owner can also benefit from these types of properties. One major way that they can make their lives easier is to rent out a portion of their assets. Many people are beginning to do this. Likely because they can use the rent money they collect to pay their mortgage payments. As you can see, there have been some significant recent changes in real estate development compared to the trends of a few years ago or even just last year. However, it is believed that the market is supposed to level out. This is great news for those who are tired of the constant fluctuations. Please keep in mind, these are all projections, and as well all know, things can change rather quickly. For this reason, whether you are an investor or just someone looking for a new place to live, it is highly advised that you keep your eyes on the market, so you don’t find yourself in an undesirable situation. Keeping your eyes on the developing trends can help you find the perfect new home for a fantastic price, and it can also help investors find a piece of property that will make them a lot of money.
I hope that this information has been helpful. I wish you the best of luck with your purchases and sales!