Real estate is one of the biggest purchases and investments that most people will ever make. For those that are looking to enter the real estate market soon, or sell a property in the near future, there are five trends that they need to be aware of.
Understanding interest rates and how they impact the market is important whether you are buying or selling, no matter what time of year. Over the past decade, mortgage interest rates have been extremely low compared to historical levels. In the last year, the government has raised key interest rates, which have slowly led to a steady increase in the market mortgage rates. If rates continue to rise in the coming years, it could have an impact on overall affordability for buyers. Sellers on the other hand could be impacted if buyers have a difficult time securing financing.
According to our Weekly Mortgage Watch, rates are still low at 4.03%. If your bank account says it's time, then so does the mortgage market. Lock in a low rate when you're ready and don't forget to check in with rates every Monday on our blog to keep an eye on whether they're rising or falling.
Local Default and Foreclosure Rates
Overall, foreclosure and loan default rates are at their lowest levels since 2005 according to ATTOM Data. However, there are some areas that are still seeing their markets impacted by foreclosures. Some areas that are struggling the most include New Jersey, Illinois, and Nevada. Talk with a real estate agent to learn more about the local default and foreclosure rates in your city. Buyers, that could mean some great deals in your area! You can search local foreclosures on our site to see what's available on the market.
When looking for a new home, one of the biggest growing trends that buyers are interested in is local amenities. In recent years, many people have been moving back to the city and mixed use areas as these communities tend to provide more local amenities, great school districts, public transportation, and access to work.
When buying a home, it is wise to keep surrounding amenities in mind because they will affect how much you pay, and the resale value of the property in the future. When you are selling you home, make sure your agent highlights all of the area features in the description and marketing materials. Buyers want to know about the great school district you're in and what types of restaurants and shops are nearby.
Another growing trend in real estate is the need to have some sort of outdoor space. Whether it is a large backyard or small balcony, most owners now want to have some outdoor space to enjoy nice weather. Those with the space should consider spending time and money to ensure that it is well kept and is appealing to buyers. A quick spruce of your outdoor areas and the right staging can add to the value of your home.
The final growing trend in the real estate market is the demand for energy efficiency. Those that are looking to buy a property would now prefer a home that has some energy efficient upgrades. According to the 2017 Home Buyer and Seller Generational Trends Report, 33% of buyers feel that the most important environmentally friendly feature is heating and cooling costs. Everything from energy efficient windows to solar panels located on the roof of the home can help bring down heating and cooling costs, and attract buyers to your home.
Purchasing a home is one of the biggest investments that most people will ever make. Since real estate is such a big investment, it is important to stay on top of these trends and most importantly - the local market. Stay ahead of the game by working with a First Team agent to help you reach your real estate goals. Reach out and we'll connect you with a local expert in your area.