Over the last two years or so, the American housing market has been enjoying a solid recovery that has become the envy of international economies. At a time when Wall Street investors are nervously watching the shaky performance of global stock markets, the real estate sector in most of the United States has become very attractive.
All things considered, now is exactly the right time to buy real estate.
Timing the Market for an Investment
Trying to determine the right time to buy a house has turned into an American pastime. Common wisdom would suggest that the right time to buy is whenever a prospective buyer requires shelter and can afford it; nevertheless, modern real estate dynamics imply that every property owner is also a potential investor that must time the market to maximize return on investment.
Since buying a home is the most direct method of entering the real estate market, it could be argued that the right time to buy could be at any time. In terms of investing, it would actually be more important to determine the right time to sell. When it comes to acquiring real property, some times may be better than others; the determination shall be made based on the investment style of the prospective buyer.
Home Buying Trends
For first-time homebuyers, the time to buy is definitely now. Interest rates may be predicting rises in the coming year, but they have actually been falling as of late according to our Mortgage Watch. Demand is at a very high level, particularly among buyers looking for certain types of properties.
The American housing market is similar to other financial markets in the sense that investment trends come and go. At this time, there is a trend among first-time homebuyers looking for newly constructed, single-family residences located within gated communities that offer fun amenities for the entire family.
At the height of the real estate downturn a few years ago, homeowners abandoned suburban areas and moved to urban centers for various reasons; they were looking for jobs and were also interested in reducing their daily commute due to high gas prices. Times, however, have changed: first-time buyers have been returning to the suburbs since 2014, and housing analysts expect this trend to continue through the end of the decade.
Searching for Quality of Life
House hunters these days are picky, and they feel that they have every right to be choosy. Developers are paying close attention to what homebuyers are looking for, which happens to be quality of life. To this end, home builders and neighborhood developers are carefully planning their projects and making sure that their floor plans and communities meet certain standards of quality.
The neighborhoods that are attracting home buyers these days tend to be suburban enclaves like Irvine that offer nice views of surrounding nature along with amenities such as swimming pools, playgrounds, fitness centers, picnic areas, etc. Prospective buyers are interested in eco-friendly neighborhoods with energy-efficient residences that offer home warranties and aesthetic designs. In other words, first-time buyers want quality of life; they want to live in planned communities where they can raise their families in safety and prosperity.
Residential developers are rushing to meet the demands of prospective buyers in terms of quality of life, and this means that the time to buy is now. Future residential housing trends are difficult to forecast; for example, no one expected a suburban exodus to downtown neighborhoods during the real estate crisis. Still, housing analysts and economists are pleased by the current trend of home buyers seeking quality of life. This is a trend that denotes prosperity, and it also promises to increase property values in the next few years.
The Bottom Line
With a positive outlook for the U.S. housing economy, first-time buyers can be certain that the time to buy is now. The climate is also ideal for long-term real estate investors, but not so much for house flippers. If you’re ready to take advantage of the current market, reach out and we’ll match you with an agent to get the ball rolling on your well timed investment.
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Anica is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty. You can connect with Anica here. Anica writes on behalf of Jack Fisher Homes, which offers real estate in Coral Canyon in Washington, Utah.