In an industry like real estate, each year brings with it new challenges that, if overcome, can lead to great rewards. More than halfway through this year, real estate entrepreneurs are identifying common trends that are impacting their investments, both positively and negatively, thus far. Identifying these trends can help to prepare the investor for future obstacles in the market. This will also protect them from ongoing trends that are likely to continue into the new year. Here are a few of the most common trends that real estate investors are seeing in 2019 so far.
A Millennial Market
The millennial generation is the most recent generation who has broken into the home buying market. With a general desire for instant gratification, millennials want to purchase homes quickly. Influenced by social media, the generation also seeks a rather large “must-have” list in their search. With a larger medium income than most other generations at their age, they are seeking to buy earlier rather than rent. Single family homes are of great appeal to this generation and will continue to drive trends for years to come.
Being in a current sellers market drives competition into multiple offers on a property. This, in turn, increases the list price of a property as there are more buyers than sellers right now, making housing inventory slimmer. For those who cannot afford the down payment or monthly expenses of a house, rental properties are a great compromise. This increase in rental property appeal makes investing in them a sure-fire thing. Investing in rental properties is a great way to get started in real estate investment with a low-maintenance project.
While knowing the future change of behavior of interest rates on the housing market is not possible, many analysts like to try to predict it. With interest rates being lower in years past than usual, many are predicting a rise in the near future. This will affect real estate investment pricing. A high interest rate could also yield lower returns. Of course this cannot be guaranteed but keeping an eye on interest rate trends is extremely vital for investment health.
Everyone knows that living in the heart of any city is going to come with a bigger price tag attached. For this reason, and many more socio-economic ones, homeowners and investors alike are moving out away from cities and into the suburbs. This increase in suburban dwelling is then having an effect on new developments in those areas. Many suburban and secondary cities are building and modernizing their lifestyle.
While we cannot know for sure what trends to real estate investing the new year will bring, we only have to wait a few short months to find out.