Hottest Real Estate Trends:
No matter the time of year, the perfect time for you to invest in real estate is NOW…If you know how to invest correctly. A new president, endless natural disasters and growing cities have created a golden opportunity to purchase an investment property, but a few changes the major banks and government have announced could either make—or break your portfolio.
Watch out for these major changes happening right now to the real estate market around you
The Economy is Booming...But may spell bad news for buyers.
The dollar is back on the rise, the GDP is rising and unemployment rates are crashing. All that spells success for American’s and their pocket, but it also mean’s that banks are going to get a bit more greedy. Chairman of the FED, Jerome Powell just announced a rise in the benchmark interest rate^1 and according to CNBC, “Morgage rates moved a full quarter of percentage point higher during January.” Because the economy isn’t expected to stop growing anytime soon, these adjustments are necessary or else the country will begin experiencing inflation problems.
But the Good News is... More Options for You.
The big banks plan on making it easier for buyers to be approved for loans. Since the crash of 2008, <Wells Fargo has remained conservative> with lending, but because the national credit average is rising, trust is also building again. Also, millennials will very soon enter the real estate market, opening up access to the largest group of spenders since the baby-boomers.^3 That means you can look forward to more diverse payment options and a less stressful application process.
The Local Market is about to Boom.
Have you heard of Tax migration? It’s when people leave their highly taxed states like California and New York for more affordable options. Because of the newly introduced tax-reform bill which increases taxes on investment properties, owners with multiple homes are being pressured to downsize. State income tax also continues to increase in these states, the Washington Post reporting, “California’s recent increase in it’s top income tax rate to 13.3 percent, making it the highest in the nation…”^4
The Mega-Wealthy will deal with more problems...
The tax reform puts more money in everyone’s pocket, so the nation’s top earners may find difficulty buying the home they want. Competition for high price homes are going to increase as those with deep pockets pick up make their next investment. Interest rates for second homes remain rather unaffected and we will see more cash buyers in the market, so if you have deep pockets find your investment and sit on it as fast as possible.
Selling Your Home without an Agent has Become Easier than Ever.
Real-estate, like most other industries are entering the digital age and moving their business to the online world. For sale by owner is becoming more popular than ever because these companies are offering complete solutions for the mortgage approval, inspection and even contraction signing steps.^5 While this new technology is in it’s infant stages, companies like opendoor.com offer the ability to list your home for free and receive bids from buyers nearly bypassing the role of real estate agent all together.
If you’re in the process of buying or selling your home, check out or extensive library of resources we’ve created to help you bypass the real estate agent and receive the full value of your home.
Click here to go to the beycome Resource Library.