Between interest rate questions and economic changes, it's more important than ever to be on top of the latest real estate developments. Here are three promising trends that will shape the market this year.
Millennials rising from the basements
As millennials get older, they are increasing home ownership rates faster than in previous years. For years we have heard the joke about the number of them living at home with their parents. For a while this was true, but the economy has improved now and with jobs seemingly more abundant, millennials are coming to the real estate market.
First-time buyers are a driving force for a healthy real estate market and millennials are starting to buy homes. This influx of new buyers and increased demand is leading to a strong market.
Interest rates on the rise
Will rates go up? This question will push many people into the buying decision. Rates have leveled out and we may experience low rates for many years to come. They may rise, but the rise is likely to be gradual overall to keep the economy from hitting another recession. The low rates mean it is still cheaper to buy than rent in many large real estate markets.
Move or remodel?
With so many homeowners locked in at extremely low interest rates many are choosing to remodel their existing homes instead of move. Many people want to know if they should spend the money remodeling, or take advantage of their increased equity and buy their long-term dream home. The biggest increase in prices has primarily taken place in "starter homes" or homes more easily financed for first-time or middle income buyers. Higher priced homes and luxury homes in many parts of the country have not experienced as large an increase in prices. This gives many homeowners the increased financial leverage to purchase their dream home with a larger down payment, low rates and a payment they are comfortable with.