The world of real estate is a treacherous ground, and few investors know exactly when to buy or sell a property. It is even harder for the regular consumer that has to do a lot of research before initiating a transaction. So far, 2017 has presented itself to experts as an excellent opportunity for buying a new home. Many of them believe that this is the ideal time to make a new purchase before the prices go back up and you find yourself stuck with an inadequate budget. Here are some expert predictions that will help you make the right decision before another financial bubble bursts:
Prices still ascending
The real estate market has been witnessing a steady increase in prices in recent years. After the industry recovered from the economic crisis that ravaged through several businesses during the last decade, it seems that the situation is slowly returning to normal. Experts believe that the housing costs will continue to rise all the way through 2017. However, the predictions for the next few years are not that optimistic. Many expect a sudden increase that will make it difficult for the everyday user to buy a house.
Mortgage rates are not stable
The volatility of mortgage rates is something that concerns many experts in the real estate field. Some even recommend their clients to avoid deals with banking institutions that offer low mortgage rates for long-term payment. At the moment, the mortgage rates in the USA are at a record high. The problem appears when you strike a deal with a bank for a lower rate, and then it quickly rises back to its usual quotation.
Less housing opportunities
It seems that the current state of the world economy cannot support a flourishing building industry. In fact, new houses are being built at a slower rate than any time in the past 50 years. The main consequence that results from this fact is that there is a higher demand for new apartments and a significantly lower offering. The fundamental law of supply and demand indicates that this situation allows sellers to dictate high prices on a constant rise.
The migration of millennials
One social aspect that influences the real estate business is the recent migration of millennials from the coastal areas to the central regions of the United States. The millennials are the people born at the beginning of the 1980s and who have now reached the financial stability required to become homeowners and buy their first home. However, the fact that they are swapping the richer coastal states for the inland territory suggests that their buying power is not that high.
Profit from political instability
The current political situation of the United States has a direct effect on the evolution of the real estate market. The lack of political balance leads to uncertainty, which in turn challenges property sellers to make irrational decisions. Some of them might increase the prices to ungrounded proportions and blow up the entire industry. Others will be eager to sell even if they undervalue their properties. You can benefit from this instability and buy a new home now before prices go back up.