The housing market has been booming for the past few years, and it’s showing no signs of slowing down.
That said, there are some trends that should keep you on your toes if you’re planning to buy or sell a home.
FHFA predicts a drop in home prices – Real estate trends
- How much? The FHFA estimates that the national median home price will fall by 3.2 percent this year and 2.1 percent next year, before rebounding to 2 percent growth from 2020 to 2026.
- Why? The sharp decline in sales and inventory has led to a shortage of homes for sale, which has pushed up prices for those who can afford them—though not by much.
Smart homes are on the rise
They’re still a bit of a luxury, but they’re becoming more common. Smart home features include:
- Smart thermostats that can adjust your heating and cooling settings based on location and time of day
- Smart locks that let you control access to your home through an app or smartphone
- Smart lighting systems that can be programmed in different colors and patterns, including blinking lights at night when there’s no one around to see them(this is particularly helpful if you live with roommates)
- Security systems that monitor activity at all times, with video cameras installed throughout the house(you wouldn’t want anyone breaking into your house while they were away!)
More people are renting and staying longer in rentals
Renting is more popular than ever.
Thanks to the rising cost of owning a home, renting has become an attractive option for many people who want the convenience of living in a city but can’t afford to buy one.
If you’re considering renting, it’s important to find out what type of property works best for your situation and lifestyle.
Look at factors such as location and amenities like schools and transportation before deciding whether or not this is right for you.
Home remodeling is booming.
Home remodeling is a great way to increase the value of your home.
Home remodeling can also be a good investment if you’re looking for an income stream, especially if it’s something that will pay off in as little as 2 years.
The demand for home remodeling has never been higher, and this means there are many contractors out there who want to work with builders and landlords alike—but not everyone knows how to do it right.
Developers are looking to attract millennials.
Millennials make up more than half of the population, so it’s no surprise that developers are trying to appeal to them.
They’re building more affordable housing, urban housing, and pet-friendly houses—and they’re also making environmental efforts that could help offset the cost of these developments.
Landlords are investing in multifamily units rather than fixer-uppers.
Rental demand is growing and so is a rental property.
Rental properties are more affordable than buying, which makes them a great investment for landlords who have a long time horizon(or just want to put money away).
Fixer-uppers are also becoming less popular because they can be more expensive to maintain and renovate over time.
Landlords can make money off of renting out their homes or condominiums instead of owning them outright—they’ll get tax breaks on the value gained from selling their properties if they don’t live there anymore.
Population growth is fueling markets
Population growth is a good thing for the economy.
Population growth is one of the most significant trends shaping real estate today and has been since at least the mid-20th century.
As people move closer together, they need more housing than ever before—and this demand creates opportunities for developers to build new buildings or renovate existing ones into attractive living spaces that will make people want to buy them.
For example, take Ibeju-Lekki Lagos.
This location alone will boost 70% of Lagos’s wealth by 2025.
Not only that, it is said to accommodate over 150,000 workers.
As a result, boosting economic stability.
People are moving from urban areas to suburbs.
The trend of people moving from urban areas to suburban areas is continuing.
As a result, more and more homes are being built in the suburbs.
This means that you can find a home for less than what it would cost in an urban setting.
In addition, most suburbs have better schools and public transportation systems than cities do.
If you’re looking for something cheaper but still have access to good schools and public transportation options, consider moving into one of these communities.
Housing shortage remains a problem
Despite the fact that real estate is still a great investment, there are many areas where housing shortages remain a problem.
The housing shortage is a serious issue for many parts of the world, especially those with high immigration rates or urban areas that have experienced rapid population growth.
For example, California has seen its population grow by more than 11 million people since 2010 alone; this growth is expected to continue into 2030 and beyond as well as affect existing neighborhoods in ways similar to what you might see if you lived near an airport during flight delays in which planes kept landing and taking off over your head all day long.
If you’re thinking about buying or selling a home or land, now’s a good time to do it
Rates are rising but not enough to derail the housing market.
Home prices are dropping and rents are rising, which means that landlords will have more money to spend on maintaining their properties.
On the other hand, renters will benefit from an increase in rental rates because they’ll be able to afford living spaces that were once out of reach due to high prices.
Renovations seem like they’re booming right now because contractors are looking for new ways to build homes with less energy efficient than traditional construction methods used today(which means more work).
This increase in demand should keep contractors busy through 2023—and beyond.
The real estate market is really hot right now, which means it’s a great time to buy or sell.
If you’re looking to make your move, you can get in touch with us today.