For those who are thinking about investing in the housing industry, it can be challenging to determine when it’s the right time to buy. The outlook on growth can be conflicting and can cause some individuals to hesitate to act quickly. Fortunately, there are a few signs that there’s a promising outlook for the housing industry’s growth in the coming years.
Low Mortgage Rates
Currently, the mortgage rates are low to accommodate buyers who want to get in on the market and purchase a property. Many people want to take advantage of the rates while they’re still available. Higher rates are expected due to an increasing demand for housing, meaning that buyers can expect to pay more money on interest as time passes. The mortgage rates continue to increase, meaning they’ll likely continue to rise due to demand that isn’t slowing down.
New Home Sales Growth
There may be more existing and older homes that are listed on the real estate market; recent data shows that new homes are in demand and are selling quickly among buyers. There are no signs that the demand will slow down anytime soon, so construction will likely persist and newly-built homes will continue to increase in value. Although construction slowed down significantly during the recession, it is now more productive again.
The modern features that are now included in new homes also make them more desirable and have caused them to be in demand. Buyers who don’t want to spend the time or money on a fixer-upper appreciates the new materials that are available in new development housing. Barn doors and laundry rooms are desirable for buyers, which means buyers will continue to purchase new homes.
More people, particularly millennials, are wanting to invest in a new home to ensure that they can reap the benefits by building equity. Renting is considered to be a waste of money, as it won’t allow you to increase your financial wealth over time. As a result, more people are wanting to leave renting behind and spend their money on a property that they can call their own.
Rent is also increasing in many cities, which is forcing many people to buy a home to ensure that they can continue living in a specific area without having to continue paying more each year as rent rises.