The real estate market is constantly in flux. Dictated by our economy, the market has experienced its fair share of ups and downs. From the Great Recession in 2008 to the increased short-term interest rates set by the Fed in December of 2015, we have seen the real estate market change drastically. Yet, what is the real estate market currently doing? Of course, real estate markets vary by location but there are a few general trends that can be noted.
The Volume of Home Sales is Increasing. Home sales have increased to 5.6 million (source: National Association of Realtors) compared to the 5.5 million homes sold last month. The median home price has also increased due to the current demand.
Seasonal Changes. Market trends suggest that the most common time to buy a home is late spring or summer. Yet with kids returning to school, families will become more reluctant to move. As we enter the colder months, we are predicting that our real estate market will slow down slightly.
The Presence of Investors in Hot Real Estate Markets. Real estate markets that have high demands of buyers typically draw the attention of investors. The goal of investors is to make a quick sale that will bring high profits. All-cash offers are ways for investors to quickly buy properties and knock out other offers. Yet, this can be frustrating for potential homeowners that do not have the ability to offer an all-cash offer.
Rental Rates Increasing. Recently, rental rates have been increasing more quickly than home prices. Some predict that this trend is due to increased home prices. In some high-demand real estate markets, people cannot afford home prices and therefore have to rely on rental property. Individuals that have poor credit scores or insufficient income history sometimes also choose to rent. These factors increase the demand for rentals and allow landlords to charge higher rates. Yet in other markets, it is more affordable to buy a home rather than rent. As always, prices and trends depend on your location and the local market demands.
By Anna Hellman
If you enjoyed this article, please consider sharing it!
