Is 2018 Going to be a Good Year for Real Estate?
Real Estate for 2018: Is It Shaping Up To Be another Record Year?
As we got into a politically tumultuous 2017 many people expected that real estate trends would shift downward in a significant fashion – they held off from getting into the real estate market so that they could see how things worked out. They were in for a surprise – the real estate market in the last two years has been rather stable. In fact, there has been a boost in construction which means that for the time being it is a buyer’s market. So is it a good idea to buy or sell?
Real Estate is Local
It all depends on where you are. If you are looking to buy it is important to analyze your situation carefully. While some cities in the United States are attracting buyers, there are others, like Boston where many young people are choosing to rent their homes because buying is simply out of the question – the real estate market is that strong. However there are others where buying a home at this time is an excellent idea – there are plenty of properties in the market which means that there are many buyers who are willing to offer favorable terms in order to offload their properties.
That doesn’t mean that you should jump straight in without considering other important factors. Location matters – you may get an excellent deal on a property, but if you want to offload your property sometime in the future then you should carefully think about whether that will be possible given the current trends – true, you can never predict what will happen in the coming years, but there are markers that can give you an indication.
Interest Rates Affect Demand
You should also think about the kind of interest rates that are available to you. The rate you pay for your mortgage ultimately has a major affect on what is paid for housing. You may get such a good deal on a property that you don’t stop to think about what interest rate your lender is offering you. If you don’t do your math right you may end up paying tens of thousands of dollars in mortgage payments over the years because you chose to go with a loan that had a bad interest rate. You are better off with a property that has a high price tag but affordable repayments than one which is cheap but has a high interest loan. Although we have been in an environment of historically low interest rates, many experts expect 2018 to see a rise in mortgage interest rates.
What Do The Pros Say?
Research Your Market
While your Realtor is invaluable for the process of buying a home in the coming year, it doesn’t mean that you rely on him blindly. You need to do your homework and know what the real estate market has to offer where you want to buy, and what kinds of mortgages are available. You shouldn’t rely just on “reliable” sources of real estate information – some of them are not as reliable as they claim to be.
You should read widely and look for information in unlikely places – it is there that you often find gems. Make sure that you have a real estate lawyer in your team as well as a professional appraisal expert – they will ensure that you get the best value for your money.