The real estate market has seen steady improvement over the last three years. In fact, industry watchers like Jeff Adams point out that the odds are improving for buyers and sellers. The US government and local authorities are doing their best to encourage buyers. Mortgage rates are low but climbing, loan requirements have slackened, several properties are available on sale, and credit score requirements have simplified.
Buyers have a better chance of finding properties to buy. However, the 2014 real estate market is dramatically different from the market of yore. Experts have pointed out a few housing trends that will play out over the next few years and these will influence nearly everyone. If you are a buyer or a seller, you should be aware of these trends to help you with your sale/purchase of real estate.
Second Tier Cities are Popular
Investors and builders are now moving towards second tier cities in the US. These cities like have lower land rates and are considered better investment options for builders. For example, New York City and Washington DC were popular investment spots in 2011. Now, interest has shifted towards cities like Dallas, Austin, Miami, Orange County, and Houston.
Real Estate Recovery Rests on Job Markets
The job market has been slow to pick up since the recession. As a result, people have yet to get new jobs. People who do have jobs have not yet experienced wage recovery. This has been holding back the real estate market. This is likely to change in 2014. The job market is estimated to improve and this will influence the property market as well. Cities like the San Francisco Bay Area and Texas have been seeing a steady improvement in the property market simply because the local economy has developed.
Inventory will Improve
As investors are actively digging into the foreclosure market, the amount of distressed inventory has been steadily decreasing. The US government has also been aiding the construction market and new properties are expected to enter the market for sale. Higher property prices will also encourage more homeowners to sell. Buyers will also face less competition from investors who will now scale back their purchases as the markets improve. Sellers will have more inventories to choose from and this will help them make an informed purchase.
Repeat Buyers will Flourish
As market rates level out, investors will scale back their purchases. However, first time buyers may find it difficult to invest in the market as they might prefer to rent until their jobs are secure and wages increase. The market is open for repeat home buyers who already have a home and still have enough money to invest in another home.
The market is changing and 2015 appears to be very fluid and undecided. Jeff Adams, the #1 real estate trainer, recommends that buyers buy now. The housing market is expected to heat up in the future rather than depress. If this happens, mortgage rates will rise along with property rates and it will become difficult to find good houses in affordable areas.
