There is no shortage of housing in America, that is to say, if you are completely open to moving anywhere in America. Clearly, most Americans aren’t afforded that option. You have a career, your family has roots, and a host of other responsibilities keep you right where you are. You might be looking to buy, or you might be looking to sell, but when faced with an important decision like buying or selling, it’s time to poke your head up and ask, what is the current real estate market like?
The Real Estate Market’s Most Recent History
It has been 9 years since the housing market bubble burst. Gone the days of banks begging you to have your mortgage with them. They’ve practically done a 180 degree about face. A little more than 3 years ago the housing market found its bottom and it’s been an uphill climb since then. As a result of these two polarizing events in America, buying a home has been made difficult and selling a house in hopes of getting actual value for it just isn’t guaranteed any longer. You don’t have to be alone if you are looking to do either, a real estate agent is always there to help you.
Consumer Expectation In 2015
Claim up to $26,000 per W2 Employee
- Billions of dollars in funding available
- Funds are available to U.S. Businesses NOW
- This is not a loan. These tax credits do not need to be repaid
Many consumers had high expectations for 2015. Most renters, 93% polled by Trulia, expected to be purchasing a home in 2015. Conversely, most homeowners placing their houses on the market felt more positive about this years seller’s market compared to year’s past. The market prices have recovered dramatically since hitting rock bottom 3 years ago. Time Magazine polled homeowners selling, and 36% said that now was the time to sell with 2015 giving them the best opportunity to get true market value.
To further affirm the upward trend of a healthy housing market, CNBC recently reported that 1.5 million buyers who lost their homes in the housing crash, would be re-entering the buyer’s market this year. This reflects a two-fold effect, first, there has been a financial recovery from the bottoming out and foreclosure of nearly 2 million homes. That’s an incredibly positive sign in terms of employment and overall economic growth. Second, banks are lending to individuals that have foreclosed. Another positive for potential buyers that feared their credit or finances wouldn’t allow them to become homeowners again.
Not All Good News Means Growth
It’s quite easy to see some of these economic indicators and think the housing market is back in full-swing. Be cautious and aware that there is still some cyclical nature to the housing market that you want to know about before you assume we are in a pre-bubble real estate market.
· Metropolitan areas will always drive high demand and high prices due to limited options
· The renter’s market is a revolving door with no guarantee a renter will look to buy
· Apartment construction has increased steadily, not all homes purchased have backyards
· Unemployment rates are still housing market indicator
Home ownership is fulfilment of your American Dream. Over the past couple of years market professionals have seen a lot of yo-yo-ing of the housing market, but overall, the high/low extremes have tapered off. So far 2015 has shown many real estate markets, be it large metropolitan areas like New York and Boston, or mid-western cities like Salt Lake City and Chicago, are no longer over-inflated and have settled into their pre-bust trends. Also, when assessing your local real estate market, two strong fundamentals dictate real estate market growth in communities, solid job growth and low vacancy rate.
About the author:
This article was composed by Jerome Eckerman. Jerome is a real estate agent in the Boone, NC area and works often with The Sterling Company– a premier Blue Ridge Mountains real estate company. Jerome enjoys researcing the current market of real estate and reporting it for his fellow agents.
