Times are always changing, and that seems to be particularly true for real estate trends these days. What upcoming summer trends do you need to know about in today’s hot housing market?
1. Rising prices.
Home affordability is on the decline as prices continue to rise faster than wages. The average buyer now invests over 30% in mortgage payments. High rental rates keep the market attractive, however, with most buyers saving money over renting in as little as 2 years.
2. Leveling markets.
The country’s hottest markets (San Francisco, Boston) are leveling off, with growth returning to normal.
3. Tight inventory.
New home builders continue to struggle to meet demands in their recovery. Inventory, particularly for starter homes, will remain tight, with fewer distressed properties for sale.
4. Rapid sales.
One-third of properties disappear within 30 days of listing, with 62% facing bidding wars.
5. Mortgage accessibility.
Relaxed guidelines for borrowers are allowing for more purchases, with 3/4 of loan apps closing, compared to just 2/3 last year.
6. Rising rates.
Rising rates aren’t chasing away buyers, who still feel pressed to take advantage of near-historic lows.
7. Disappearing cash.
Cash purchases, making up nearly 47% of the market in 2011 and 33% just last year, are projected to decline to their historic average, 25%, by the middle of next year.
8. Mom-and-pop investors.
Gone are yesteryear’s institutional investors. Now mom-and-pop investors are entering the investment market, taking advantage of the current real estate trend of ditching stocks in favor of the landlord/vacation rental game.
9. Trendy townhouses.
High-density “urban villages,” comprising 12% of new construction, are favored by first-time buyers and Boomers looking to downsize.
10. Return to the ‘burbs.
Urban homes have risen so quickly, more than half of buyers are looking to the suburbs for opportunities.
Don’t fall behind the times. Stay up on the latest real estate trends with the help of Properties Online today.