Most of my blog posts regarding market insights pertain to the communities I serve. But sometimes it is wise to take a step back and see how the housing market in the US is doing overall. The good news is US home sales and prices continue to rise. Back a few years ago it was predicted by many leading real estate experts that 2015 would be the year for real estate – and boy were they right.
The reasons? Well, there are many ways we can dissect this cycle. First — it is just that–a cycle and after things go down they generally go up. Secondly, today’s home buyers feel a whole lot more secure about their job and their future within their profession. Third – houses are still relatively cheap. With interest rates still under 4% mortgages are really cheap, hence making the price of a home much more affordable.
Fourth, the buyers who are moving up, can do just that since their current home has greater value and they have increased their equity in it. Fifth, the lenders are easing up a bit on lending money. There are a huge array of products in the mortgage industry and not every institution offers the same thing, so make sure to compare. Some even offer 5% down loans.
Put it all together and real estate is probably the best investment you can make right now.