Knowing the trends of the past has always helped one to move forward, and irrespective of the industry works in, most of the professionals have always kept the receding trends in their mind to make sure the future only gets better than them. Real estate market has been the most volatile of all, and to do business in such a market staying updated to the latest news makes ultimate sense. As 2017 creeps in, let’s have a look in short of some of the major trends that have dominated the market in 2016.
One of the interesting trends that have been noted by Ron Forrester, who has been dealing with the real estate market for quite a few decades, is the lack of interest shown in home ownership. Even a decade back, records have shown that home ownership market in the industry was as high as 69.2 percent. But Gone are those golden days, and this rate has fallen off the cliff now. Standing in 2017, it is a great shock to decipher that the homeownership rate fell down to 62.9 percent in 2016. This only goes on to say, that the U.S. market has changed, and people are more keen about putting up on rent that owning that particular space. This is indeed a noticeable change as far the market movement is concerned, and Ron believes, this will definitely ask the renowned builders and agents to change their strategies in selling the market.
The next specific criterion is indeed a serious issue and should not be taken lightly under any circumstances. The last year has set a record for getting the interest rates to unexpected lows. In spite of such a figure, the homeowners who could be the possible buyers in the days to come are still renting, just because they couldn’t match the credit score. Everyone is aware of the collapse of the residential home market that happened in the US during 2007-2008. This has actually brought up a long line of new regulations which have proved to make the scenario much tougher for the average number of Americans secure their own house loan to make a new purchase. So, the same apartment which was quite within the range of a young American has gone beyond its affordability. Now, one can make it out quite easily why the demand for rental housing has increased in the past one year.
Ron Forrester has always been highly enthusiastic while speaking of the house flipping, which proved to be the most prominent reason for the financial crisis that the entire US market faced. Finally, it has made a comeback once again in 2016. While questioning the reasons for it, one finds out, that is the combination of peaking prices of the residential real estate sector, startups backed up by multiple ventures, and the Wall Street crash which have accumulated to open the floodgates of house flipping. Quite interestingly, those who have flipped their homes in the first three-quarters of 2016 have made substantially high returns, while those who have flipped it in the last one-quarter were financed with debt.
So these interesting trends say a lot of how 2017 is going to be. It is only a matter of time to wait and watch them going up and down in its own potential curve.