The 2015 Real Estate Market: Invest or Not To Invest?
The 2015 real estate market is flourishing. The economy has improved, new construction has increased, and buyers are actively purchasing commercial and residential real estate. However, the old adage ‘once bitten, twice shy,’ is also very visible in the real estate market.
Once Bitten, Twice Shy
According to industry professionals like Jeff Adams, more than 8 million homeowners lost their homes in 2009. These homeowners are now eligible for loans; as federal rules will wipe the bankruptcy/foreclosure/short sale offer their credit histories. With a clear credit history, they can now find cheap loans and affordable property anywhere in the US.
Unfortunately, the mortgage crisis of 2009 affected the confidence of homeowners. Instead of stepping into the market and looking for homes, more than 69% of buyers are waiting to see how the market will shape up before they start investing in residential or commercial real estate.
Is this is a Good Time to Invest in the Real Estate Market?
Jeff Adams #1 Real Estate Trainer is optimistic about the 2015 estate market. He states that there are dramatic differences between the pre-recession real estate market and the 2015 real estate market, but buyers will still be able to find great properties at a reasonable price. He points out a few market facts that should prove it to you as well.
Fact #1 – Mortgage Rates are Low
Mortgage rates are the lowest they can, and this is good news for buyers. Furthermore, lenders like Fannie Mae and Freddie Mac have reduced down payment requirements for first time homeowners. In order to encourage spending, lenders are also trying to relax credit requirements. No one wants a repeat of the 2009 mortgage crisis but these relaxed lending standards are perfectly for first time buyers stepping into the real estate market.
Fact #2 – Foreclosures Are Available
Although national statistics are saying that foreclosures are down, distress sales are still going through in almost every state in the US. As a result, affordable property is still available. A smart buyer can easily find properties in the foreclosure pipeline and set up a short sale. If you are interested in a real estate career, it is possible to renovate such homes and sell them at a profit.
Fact #3- Rents Will Remain High
The Millennial generation saw the mortgage crisis with their own eyes and most of them had friends and relatives who lost their homes. As a result, this generation now prefers renting instead of buying. Market experts state that singles and couples will prefer to rent in large cities as well. For real estate investors, this is a good time to buy single-family homes as investment properties. Tenants will always be available and a steady income can be expected from single-dwelling homes.
Adams urges investors and buyers to start looking for good properties right away. He also urges you to find a qualified local real estate agent who will help you understand the ever-changing local real estate market. With the right help, there is no reason why you cannot become a successful real estate investor.
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