Welcome to the new normal in real estate investing! With so much change happening in the world, it’s more important than ever to understand trends and forecast future investments. Whether you’re a seasoned investor or just starting out, this blog post is for you. We’ll explore key factors that are shaping the industry right now and share insights on what to expect in the coming months and years. So grab a cup of coffee, settle into your favorite armchair, and let’s dive into the exciting world of real estate investment!
The Changing Landscape of Real Estate
In the current market, many homeowners are feeling the pinch of increasing mortgage rates and decreasing property values. This has caused many people to reconsider their real estate investments, and it’s likely that this trend will continue.
As a result, we’re seeing an increase in rentals, as well as a shift towards more multifamily properties. Multifamily buildings offer stability and affordability, which is why they’re becoming so popular. Additionally, single-family homes are now being purchased as investment properties rather than used for personal consumption.
The future of real estate is always changing, but it’s important to stay ahead of the trends in order to make the most informed investment decisions.
Understanding Trends in the Real Estate Market
The current real estate market is unique in many ways and there are a number of important trends worth understanding if you want to make sound investments in the future.
First, the U.S. housing market has been in a continuous decline for the past several years and prices have not kept up with inflation. In fact, according to Zillow, the cost of a “middle-of-the-road” home fell by 1% from January to March this year alone! This means that even if you’re in a desirable location and are able to find a property that’s still selling at an affordable price, it’s likely only for a brief period of time.
Secondly, the number of homes being sold is down significantly from where it was just a few years ago. In April 2017, there were 2.1 million homes sold across all markets nationally; however, this figure has steadily decreased every month since then and as of May 2018 had only reached 1.8 million homes sold (according to data from Realtor® Association of America). This suggests that there are simply more available properties on the market than buyers interested in purchasing them – which could mean that prices will start to increase again sooner rather than later.
Thirdly, interest rates have been on the rise recently and this is likely having an impact on home buying activity. The average rate on a 30-year fixed-rate mortgage rose from 3.84% at the end of 2017 to 4%. Even
Forecasting Future Real Estate Investments
Real estate is a long-term investment, so it’s important to have a plan for where you want to invest and how much you want to spend.
To help make the decision process easier, here are five trends to keep an eye on when forecasting future real estate investments:
1. Technology is changing the way we live and work. This means that more people are looking for places to live that are closer to their jobs. As a result, suburbs and rural areas are becoming more popular real estate choices.
2. Families are growing larger and more diverse. Couples are choosing to have children later in life, which means there’s an increasing demand for single-family homes as well as apartments and condos near schools and other amenities.
3. Immigration is a major factor in real estate economics today. Hundreds of thousands of people come into the country every year, which means that communities that were previously considered “sleepy” or “dead” can now see strong growth prospects due to this influx of new residents.
4. The cost of housing continues to rise, which makes buying an existing home or investing in a property with room for expansion less affordable than it has been in recent years. As a result, more people are looking into purchasing newly built homes or properties located in suburban areas with good access to public transportation and employment opportunities.
5. Economic conditions play an important role in shaping real estate trends
Conclusion
Trends are always changing, which is why it’s important to stay ahead of the curve and understand what’s going on in the real estate market. In this article, we highlight some of the latest trends that you need to be aware of if you want to make smart real estate investments in the future. From rising interest rates to increasing demand for urban living, our team has got all the details you need to make informed decisions when it comes to buying or selling a home. So whether you’re looking for long-term stability or an edge in today’s competitive market, read on for insights that will help you take control of your Real Estate future!
