Top 5 Trends That Will Make Real Estate Market Hotter In 2013
Everyone wants to have a home which they can call their own. The 2008 crash left the majority of the population scarred. In the last five years almost 16 million foreclosures were recorded. But now the economy is showing little signs of revival and specifically the real estate market has just started picking up. There are number of factors that are contributing to the positive change. Keeping the changes in mind here are top 5 trends to watch out for as per the market and industry experts:
- Rising prices of homes: The lack or slow pace of new constructions has resulted in increase in the prices of old constructions too. According to the market experts the prices increased by somewhat 6% this year and will continue to rise by 5% in the next year too. So this is just the best time to buy property if you are planning to. It is best to hire an experienced real estate agent in the area where you plan to buy the condos. To find a best real estate agent it is essential to check their credentials, reputation and fee.
- Increase in rent too: When the economy crashed, a large number of professionals in their 20’s and 30’s lost their jobs and stayed with their family or friends to save money. With the economy picking up, they have either got new jobs or have saved enough to move to their own apartments. This has led to an increase in the number of rented apartments and thus the hike in the rents.
- Lesser foreclosures: The Federal Housing Finance Agency and the banks made fewer foreclosures this year and this trend is going to continue in the New Year too. Instead of foreclosing the houses with loans, the banks help the distressed borrowers to negotiate a suitable deal with the purchasers. This has surely given a new ray of hope to people who fail to pay their debts and fear losing their homes.
- Increase in short sales: Since foreclosures are reducing, short sales are rising on the same pace. Basically a short sale means the borrower sells his home and the borrower accepts the price even if it is less than what the borrower owed. This saves both the parties from the lengthy and expensive process of foreclosure.
- More of first time buyers in the market: This is one of the most positive signals of the economy picking up. New and young professionals are looking for single family homes in the market. In fact more than 37% of all buyers were first time borrowers establishes this fact very well. This has also helped to take the real estate market towards a positive trend.
All these trends will play a very important role in establishing the direction in which the real estate market will go in the upcoming year. Make a proper research about what time is the best to enter the real estate market as the trends can be different from long term and short term investors.