Is now the right time to enter the housing market? If the press were to be believed, then you’d stay well away. But are things really all doom and gloom? People are continuing to buy and sell property, which means that some people are still having some luck in the housing market.
If you’ve been thinking about buying or selling a property, then you need to understand a bit more about the current housing market and what it could mean for you. You might find that now is actually the perfect opportunity for you to push forward, or decide to hang back a year or two.
Learn more about the reality of today’s housing market to help you decide if it’s the right move forward for you.
A return to normal for real estate?
The housing market has been somewhat unpredictable in recent years. The economic troubles of recent years have seen fluctuations in house prices but decreases in the number of people able to buy their properties. However, figures reported this year so far show that house prices have not only returned to pre-recession levels but have surpassed them. This is good news for sellers who have been sitting on their properties for years and have been unable to sell because of fears of selling at a loss.
Some states are predicted to have strong housing markets this year, so it’s worth exploring the option to buy or sell if you live in these states.
What about below the surface?
While the increase in house prices is welcome news for some, things might not be as rosy below the surface. Some economists report that while house prices are increasing, there are many buyers who are unable to afford to buy property or that there is a shortage of available properties. The biggest demand for houses comes from the low-end of the market, and with available properties scarce at these prices – people are being priced out of owning their own homes.
This can be frustrating for people wishing to get on the property ladder, who might have to wait longer to join the real estate game.
Real estate goes digital
While developments in the market continue offline, there are some online developments in real estate that are worth getting excited about. The exchange of real estate is a tricky process involving multiple parties, and it can be easy for things to go wrong with transactions. However, things are starting to move towards a digital form of asset management, blockchain, that allows transparent trading to buyers and sellers. Blockchain allows international property sales to happen easily and efficiently, and platforms such as the i-house Token, make it more convenient to buy and sell property while keeping things secure in a cloud platform. Blockchain makes it possible to trade property using Bitcoin and other cryptocurrencies, taking real estate firmly into the future.
Younger generations struggling to get on the ladder
Millennials continue to be the hardest hit by the housing market, with slow income growth and high rental rates meaning many would-be homeowners are still living with their parents. It’s a situation that many people can relate to, but the good news is that things are on the up. The percentage of younger homeowners (under 35s) is steadily increasing, rising from 34.7% to 36% in the latest Census Bureau data. This increase is being put forward as one of the reasons behind the house price increases, as more of this generation look to own their own homes.
Of course, this isn’t something that applies to all millennials. Those who work in big cities and enjoy the lifestyle they offer can find themselves having to make a sacrifice due to being unable to afford prime real estate prices – either choosing to move to the suburbs or stay renting for the foreseeable future.
Making the right choice for you
The decision of whether or not to buy or sell will ultimately depend on your individual circumstances. Delving too much into the press that surrounds the industry can be conflicting and off-putting, so you need to do what’s right for you. If you are in a position to buy or sell your property, is there ever an ideal time to move forward? Before you commit, make sure that you assess your risk. Take a good look at the market to see what’s on there and whether or not it’s the best move for you and your family.
The housing market can be a tricky arena, but at least for now – things are looking like they’re on the up.