Economic Realities for Real Estate Investors in 2015
The recession was a nightmare for the real estate industry. Falling rates, a surplus inventory, foreclosures, and high rental rates made it a very scary real estate market for first-time real estate investors and home buyers.
That was then: post-recession, the real estate market seems to have bounced back says Jeff Adams #1 Real Estate Trainer. The real estate market is improving, foreclosures are down, real estate rates are great, and buyers are actively entering the real estate market to find their dream homes.
Are you are a first-time buyer as well?
If so, then this is the right time to find an affordable home in a wonderful locality. However, the post-recession real estate market is slightly different and buying a home means you have to do a little research. Before you start real estate investing, here are a few things that you should know.
Construction Is Increasing
New constructions have increased in 2015. In fact, websites like MarketWatch reported an almost 20% increase in new homes in April 2015. Single-family homes were the most popular, but luxury homes and multi-family dwellings were also in demand.
Sales of single-family homes increased by 5.5% in early-2015 and sales were expected to increase by mid-2015. For buyers, this is good news. They now have a ready stock of homes in different budgets and locations to choose from. This has definitely led to an increased surge of interest from overseas real estate investors and first-time home buyers.
Lenders Relax Lending Standards
Mortgage rates are at an all-time low. Furthermore, lenders like Fannie Mac and Freddie Mach have released new 3% down-payment products that will bring in real estate investors and first-time buyers. However, industry pundits are also saying that rates will increase in late-2015. Websites like Inman predict an increase of 1% -5% by the end of the year and this could put a damper on the real estate market.
Housing Trends Have Changed
Previously, the construction industry focused on single family homes as they were in demand. In the 2015 real estate market, the demand persists but buyers are now also picking up multi-family homes and luxury homes.
This is because uncertain job markets have resulted in singles moving in with parents and/or single families having their parents living with them. This trend could result in an increased demand for multi-family homes by late-2015.
Cheaper Homes Are In.
Although the construction industry returned to pre-recession levels, builders have now changed their focus. Builders have started construction on the outskirts of large cities and in satellite towns around large towns. These areas already have the necessary infrastructure to deal with an influx of population.
Furthermore, land values are cheaper and workers can commute easily through interstates and highways. As a result, most real estate investors have start looking at satellite towns and suburban areas as prime investment real estate markets.
If you want an affordable home, industry expert Jeff Adams recommends you start doing your research right away. With these tips and a little expert guidance from Jeff Adams, you should be well on your way to becoming a homeowner by 2016.
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