21 Oct Today’s Housing Market
This economic slump is not the end of the world for housing market, as most experts believe that another slump is likely to occur within the next five years. He made a 50-50 prediction that the next recession will begin in 2012. Despite a global downturn, the value of real estate is expected to hold up during the recession. This is especially true for local properties, because they’re so sensitive to market fluctuations. Redfin’s economists find that housing markets in the Western United States, where fewer people live, could be most vulnerable to a housing crash. In this list, we’ve ranked the states and cities that have the highest risk of a housing slump. According to Redfin, these are the top 10 cities where home sellers are at risk. Don’t expect to buy a property just because your city is not listed here. Knowing what’s going on with the larger real estate trends, and the specific ups and downs of your local market, is very important when you’re looking to make a profit from real estate investing. Here’s a checklist of things to consider when planning to make a home purchase.
Home prices have increased for some time now and have started to moderate. According to the Federal Housing Finance Agency, prices of homes increased 4.6 percent in the second quarter of this year. They rose most in the Mountain region of the United States: 6.5% over the year, which includes states like Idaho, Montana, Wyoming, Colorado, Utah, and Arizona.
Sales were down in September 2019 at 2.2 percent. Sales are expected to increase by about 3.9% this year. Sales on newly constructed homes have increased both monthly and annually, according to the U.S. housing industry. Census Bureau. The number of people who moved between July and August and in a year increased by 7.1 percent and 18 percent, respectively.
Since the first half of 2018, mortgage interest rates have been on a downward trajectory. They’ve taken some small jumps from week to week, but in general the rate trend has been on the decline. As of mid-October, Freddie Mac reports that 30-year, fixed-rate mortgage interest rates were down 1.16% from August to October, according to a recent report. They now report an interest rate of 3.69%. This represents a drop of 1.11% from last year’s loan rate of 3.80%.
The bidding wars have been increasing over the last few months as more and more consumers are purchasing homes during the housing downturn. The number of active real estate agents has dropped throughout the year, but still remains high. He stated that overall property showings were also up for the month. The most active market is in the west, where the buyer traffic has gone up 8.9 percent in September.
According to Realtor.com, home sale activity among investors also increased 5.6 percent in the second quarter of the year, accounting for 7.1 percent of all home sales. According to Realtor.com data, inventory for sale during Q2 2017 was up 6 percent from Q1. The demand is mostly driven by investor sales and homes priced at $1 million or more.
The greatest increase in flipping is happening in Raleigh, North Carolina (72% growth), followed by Austin, Texas (57% growth). Although flipping returns are on the decline, this is one of the few places you can actually make money in the process. The report by ATTOM Data Solutions shows that home flipping revenues have dropped to their lowest level since 2007. Fortunately, some markets have been bucking this trend.
The number of mortgage foreclosures in the U.S. declined by about 12 percent in Q3 as compared to Q2 and was down 36 percent in 2019, according to the latest report from RealtyTrac. They were well below pre-recession average for the 12th quarter in a row.
* Phoenix had more construction starts in 2016 than any other city, with 62,500 units. * The major factors behind the massive boom in construction have been strong demand, low inventory, and competitive prices. * The dramatic surge in construction is beginning to cool down.
The Bottom Line
In real estate market, there are a lot of moving parts, and predicting what will happen next is always a challenge. To become a good investor, it’s important to understand the needs and wants of the local market where you live, avoid unnecessary risk by diversifying your investments and take good care of your financial stability prior to taking the next investment step.