It isn’t that easy to make predictions about the future and the same implies for the real estate business too. If things would go smoothly as we think, then realty business would be really easy to handle. But, there are few things that make it easy to run and listed below are the latest trends of 2013. Pay attention to these and use it off in this year, to make your investment worthy. This article will tell you where the housing market is going and what items keep the realty business high on demand.
Interest Rates Will Rise Gradually
The present interest rates are anyways high for some buyers and it looks like it would expand slowly in the coming years. It is predicted that by the year end or last quarter of this year, the interest rates would reach to a high point that they are now. Suppose you’ve brought a home now and want to give it for rent. If you want to start a new business and go to sellers and ask for suggestions, they will definitely tell you to wait until the values rise even more. Though it is not yet cleared how long you’ll have to wait, many realty owners or businesses, like John D Wood Estate Agents say that there will be a boom in the market soon. It all means that you’ll have to pay higher interest rates and it applies for both sellers and buyers, who have a strong sense of urgency at times of low rates.
Demands for Homes will Surge
The housing formations saw boom in time levels last year and this year it will continue to have momentum, but at a faster rate throughout 2013. It is predicted that the housing market will expand at a faster rate this year. The tight inventory will impact on sales than the lack of demand. Last year or previous year, there was a lot of uncertainty, but this time it is believed that we will get to see more of distressed properties in the market.
Young Adults Believe in Home Ownership
Young generations (18 to 35 year olds) will prove that they trust in home ownerships. This is contrary to what had happened couple of years ago. A recent study proves that they believe so, due to the fact that 40 percent of them already own a house and majority see owning house as a part of their dream. More than 90 percent of people, who are currently running renting plan, have mindset to purchase a house. When it is combined with household formations, we can see 2013 as the year where youngsters will jump into house ownerships.
More of Second Time Home Buyers
The current economy is showing positive signs and it would bring back ‘move-up’ sellers into the market. The past few years of depressing equities have prevented those sellers to move up to home of their desire. But this year, as a surprise, we can see more number of second time or move-up sellers. With economy recovering and prices up, many sellers are taking advantage of this golden opportunity to buy their dream house, shifting to a lifestyle of their choice.
Use of Latest Technology will continue
The search for the real property and best deals will continue, perhaps using the latest technology. Before it was just the property sites and now people have started making use of smartphones and other advanced technologies to find a reliable site.
With all these, we can expect 2013 would favor the real estate business.