Thinking of getting into real estate, but unsure where to start? The housing market brings with it plenty of questions:
What type of home should you invest in? What’s the market like in 2017?
The first question has an easy answer: single family homes.
Investing in single family homes is cheaper and only requires you to manage one tenant. That second question, though, is a little bit trickier. But don’t worry. We’ve got you covered.
We’re going to look at four of the biggest real estate market trends and show you how you can capitalize on them.
1) More Millennials are Buying Homes
The housing market is experiencing a youth movement.
As the oldest of the Millennial generation enters their thirties, their priorities have shifted. More and more they are thinking of settling down, getting married, and having kids.
And the market wants to accommodate them.
Baby boomer participation has decreased, and institutional investors have left the market, making it easier for Millennials to purchase their first home. It also helps that many of this generation are secure in their jobs, and their wages are on the rise.
This upward tick qualifies more Millennials for mortgages, especially the low down payment variety.
2) Houses are Getting Smaller
Housing square footage has dropped by over 73 feet since August of 2016.
This shrinkage in due in large part to the tiny house movement, one of those real estate market trends that advocates efficient living and self-sufficiency. Another factor is the neglected first-time buyer market. Smaller homes are more affordable than larger ones.
They are also easier to sell.
What this trend ultimately means for you is less overall property to manage. This is especially true if you choose to rent the property. A decrease in square footage lowers maintenance costs, insurance premiums, and property taxes.
It also enables you to buy more of these smaller houses and sell them to even more prospective buyers.
3) Rents are Becoming More Affordable
You can use this trend in your marketing pitch to potential tenants. While rents did rise about 1.7%, wages have outpaced this growth for the first time in a while. Demand is also higher for rental properties. Builders have seized on this demand, building more multi-family units to meet the need.
With a significant number of Americans favoring renting over buying, this may be the easiest real estate craze to get in on.
4) Mortgage Rates Will Increase
This last trend may not be so good for you. While more mortgages are readily available, the rates are going up. This bump is due in large part to outside politics. Investors tend to be skittish around controversy.
What this climb means for you, is that you should act sooner rather than later.
How to Capitalize on these Real Estate Market Trends
It’s no secret that navigating the ocean of real estate market trends is a challenge. And if 2008 taught us anything, it’s that those waters can get volatile in a hurry.
So who can you turn to for smooth sailing?
The answer is us at Clockwork Property Management. We make the buying and investing process a breeze. Our experts can answer any of your questions. Contact us today or leave a comment below.
We can’t wait to hear from you.