Investing in Real Estate?

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Understanding the Market Trends over the years . . .

In 2014 -

While the demographics of recent buyers fall mostly in the expected range, income peaks for ages 34 to 58, and the prevalence of children in the home peaks for buyers 34 to 48. Gen Y ( born between 1981 and 1994/6 ) has the largest share of first-time buyers at 76 percent. The share of first-time buyers declines as age increases. Among the Silent Generation ( people born from 1928 to 1945 ) only two percent of buyers are first-time buyers.
At least 80 percent of buyers who are aged 58 and younger bought a detached single-family home, while it is increasingly common for buyers over the age of 58 to purchase townhouses and condos.
The slow pace of job growth, as well as income and wage growth, is still holding back the real estate recovery and that's not likely to change quickly. Many cities in the Bay Area and in Texas have seen strong housing recoveries based on the strength of their economy.

In 2015-

In 2014, mortgage rates were steadily declining there is an slight increase in 2015 more people may qualify for home loans as issues like foreclosures or short sales age out of their credit reports.
During 2014, the lack of houses for sale significantly affected the real estate market. However, there have been signs that available home inventory will be on the upswing during 2015.
As technology evolves, the process by which people buy and sell homes continues to develop as well. While real estate professionals still open doors and show homes, that aspect of the profession has become less time-consuming with the integration of technology. The trend is predicted to accelerate as more mobile devices are equipped with tools such as augmented reality, allows potential buyers to explore homes on their own.

In 2016 -

24-hour cities are considered to have the most action, the most perceived opportunity and the most desirable lifestyle when it comes to the urban living demographic. However, they also carry with them the highest costs of living, which is now driving away skilled labor to other secondary markets known as 18-hour cities.
Due to the increased need for both urban and suburban living, new construction of multi-family properties and single-family home communities will begin to rise
The impact that urban agriculture projects will really have on the real estate market in the coming year and beyond is the demonstration that urban land can serve many purposes. Inner-city land innovation is becoming more vital to the prosperity of urban development.

In 2017 -

Home prices have been on a steady incline in recent years. But that momentum may begin to slow down in 2017. Since the Federal Reserve just raised interest rates for the first time in a year, that could have a stabilizing effect on home prices.
According to the National Association of Realtors, we could see an uptick in the demand for properties in 2017. Specifically, the NAR is predicting that existing home sales will top 6 million in 2017.
While big cities are still popular among young adults, many millennials are interested in living in suburban areas. Research from Zillow shows that 47% of millennial homeowners have opted to buy houses in the suburbs, largely due to the lower cost of living that it entails

In 2018 -

Real estate housing inventory has been falling for years nationwide. While it remains historically low, it appears that this trend is on the verge of turning. Inventory is finally starting to climb back in a number of cities across the US real estate market.
A decade after poorly unwritten mortgages caused the US housing market crash, it seems that associated foreclosure risk has faded. Instead, the biggest foreclosure risk today comes from natural disasters such as the hurricane trio of Harvey, Irma, and Maria of last year. Those hurricanes impacted many local markets and foreclosure starts increased in Q3 2017.

In 2019 -

Home sales saw a late surge in the final months of the year but growth was constricted as inventory hit a new low. Home sale declines were also linked to buyer exhaustion. Large and overheated markets struggled to sustain sales momentum and all but one of the twelve largest markets saw a decrease in total transactions over 2018.
Non-individual buyers took a bigger share of the market in 2019, as investor home buying growth outperformed total home sales. The investment share of total sales rose from 7.1 percent in the second quarter of 2018 to 7.7 percent in the second quarter of 2019, marking the highest second-quarter investment share since 2013.
Throughout 2019, more home shoppers looked for options outside of their home metros and states, driven primarily by affordability concerns. More home shoppers within the nation’s 100 largest metros looked for homes outside of their own metro areas compared to a year earlier. The share of shoppers looking outside their own market reached nearly 50 percent. In metros with the most relative outflow of demand, home shoppers were viewing homes in other metros which were 30 percent less expensive than their home metro median listing price.

In 2020 -

U.S. housing gained about $2.5 trillion in value in 2020 — the most in a single year since 2005, according to a new Zillow analysis. The full stock of U.S. housing is now worth $36.2 trillion.
Due to the pandemic and the competitive housing market in 2020, some buyers purchased their homes without stepping foot inside first.
The COVID-19 pandemic has fueled migration from major cities to the suburbs. The biggest metro areas, like New York, San Francisco, and Washington, DC, are likely to rebound once the US is firmly on the other side of the pandemic.
Searches for single-family homes were at their highest rate in four years in 2020, according to Redfin's chief economist.

In 2021 -

With so many sellers under the impression that this is a great time to sell, it seems likely that more sellers will come out of the woodwork over the coming months. From April to June of 2021, home prices rose nearly 23% higher than they were during the same time in 2020.
But home prices were just 16% higher from July to September of 2021 than July to September of 2020.
we only recommend 15-year mortgages: They tend to have lower rates than 30-year mortgages, and since they end 15 years sooner, you’ll pay less interest over time.

In 2022 (Predictions) -

Housing Market Predictions 2022: Will it Crash Soon?

The simple answer is that it will not crash. The current trends and the forecast for the next 12 to 24 months clearly show that most likely the housing market is expected to stay robust, with many of the trends that propelled real estate to new heights last year remaining firmly in place this year as well. Last year, homeowners saw a market in which their properties sold quickly and frequently above the asking prices, as numerous home buyers fought for the winning bid.

some significant hurdles are approaching the US housing market. Most experts had predicted mortgage rates for housing to rise this year. The cost of borrowing money through mortgages has been steadily increasing this year. Most experts predicted that mortgage rates would climb this year, but they did so more quickly than expected, averaging more than 4% for 30-year fixed-rate mortgages in mid-February.

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