Millennials Are First-Time Homeowners Who Are Eager To Enter The Market:
Millennials make up a big group of customers who are ready to buy their first house, outnumbering the remarkable number of baby boomers that flooded the market in the 1970s and 1980s. According to Forbes, this category of potential homeowners has an average family income of $88,200. Given that the average millennial homeowner is now of working age and earns a respectable wage, many analysts predict that millennials will save the housing market from stalling in 2021 and after.
Conventional Lending Standards Have Become Less Strict Post 2008 Recession:
Underwriting criteria have been much more lenient in recent years, making it much simpler to purchase a property. Traditional lenders have promoted house ownership by reducing the necessary down payment and credit ratings to qualify. Lenders are also allowing for greater levels of debt. Many consumers who were previously turned down can now get a mortgage through a traditional lender.
Due To Changes In Tax Laws, Foreign Buyer Investment Is Down:
Many foreign purchasers have ceased acquiring properties in premium markets such as New York and California since the new tax regulations took effect in 2018. The purchasers were mostly from Europe, China, and Latin America. Politics, in particular, has a huge influence on the real estate investment market. Another factor contributing to the drop in foreign investment is the cooling of China’s profits and income numbers. Foreign demand is influenced by tariff policy and investor sentiment.
Lower-Priced Houses Are In Strong Demand, With Several Offers Frequently Being Made:
While the selling of higher-priced homes has slowed, the sale of lower-priced properties has not. With millions of millennials finally ready to enter the market and purchase their first house, competition is fierce. Another aspect contributing to the lack of modest housing is that older individuals are choosing to stay in their houses for extended periods of time. According to the New York Times, housing inventory has decreased by 8%, with fewer affordable houses available.
For The Foreseeable Future, Mortgage Rates Are Likely To Remain Below 5%:
The real estate market is boosted by low and steady borrowing rates. While it’s hard to say how long this pattern will last, there’s no reason to believe that rates will rise, especially as we approach a significant election.
As Homeowners Look For More Inexpensive Choices, Second-Tier Cities Are Seeing Considerable Development:
According to Forbes, the tendency of going to secondary property markets rather than main housing markets is likely to continue until 2021. Many big businesses have fueled this trend by moving their headquarters to more cost-effective locations.
The Competitive Housing Market Has Increased The Demand For Amenity-Rich Apartments As A Method To Stand Out:
In many cases, today’s top multifamily complexes include movie theatres, communal gardens, laundry services, and even co-working space.
Home Staging Has Grown In Popularity:
When it comes time to sell your house, decluttering is critical to achieving the greatest price. There is evidence that sellers who stage their house earn a higher price.
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