It’s been on something of a downward curve over recent years, yet we finally seem to have reached a point where the real estate market is progressing the right way.
In fact, over the course of next year, the outlook is seemingly set to get even better. The likes of Clay Hutson and other established real estate agents are already reporting more interest than usual – and the statistics suggest that this is only going to get better.
Industry experts believe that the scene is set for real estate to really power the economy over the next few years and considering the fact that it makes up around 15% of GDP, this is hugely significant. We’ll now look at some of the signs which are behind the high expectations for the future.
The market is being fueled from abroad
Let’s start with something that some readers might not expect. If you live in some of the more expensive cities in the country, with New York and Los Angeles being two prime examples, then you will have probably noticed the surge in foreign buyers. The likes of China are really starting to fuel the real estate market in these wealthy areas, as they look for a ‘safer’ investment for their wealth and turn away from their home market which has somewhat stood still.
This has now been happening for a long-stretch of time and there are no signs that it’s going to slow down anytime soon.
People will be able to borrow more
Something that has hindered the market over recent years is the lack of borrowing potential. Following the crash several years ago, financial institutions started to become much more wary and started making tougher rules.
Well, these rules look set to be relaxed a little more. It will probably start with the likes of Freddie Mac, and other similar mortgage providers owned by the government. These companies are now starting to consider funding larger mortgages, which has been unheard of up until recently.
Rates will rise – but don’t worry
One concern which does exist within the market is rising interest rates. It’s true, rates will rise like they have been doing, meaning that mortgages will become more expensive. However, experts believe that rates of interest won’t surpass 4.3%, which should keep mortgages affordable for the majority of buyers.
New homes are being built at record-speeds
This final point is perhaps the most interesting of the lot, particularly as it can influence a lot of people who have not yet jumped onto the ladder.
The news regarding new homes is amongst some of the best in the industry. Over the years we have seen a steady incline, with over 1.15 million new properties being constructed through the course of 2016. This was around 5% higher than the previous year and due to the improving market, a lot of experts believe that this figure is going to better itself once again for 2017.