Real Estate Investing in 2017
You often hear people making comments such as “In this market.” Some people do obsess about the real estate market. They shout and sing when it is good and moan and groan when it heads south. But as any avid investor will tell you, real estate is a solid investment, whatever the state of the market. Next to precious metals, it is one of the most solid investments you can make. Sure, the market often goes down but it seems to always inevitably rises again. Real estate is a limited commodity. Populations will continue to grow but the land mass will remain the same.
Housing Sales are Up
With the housing market in the United States, the facts are simple and sales are up. In 2017 more houses are being built and sold and even more continue to rise in value.
Purchasing a property for investment purposes is big business. Scott Byers Real Estate shared research showing that 37% of all home purchases in the US were made for investment purposes. Buying investment property makes a great deal of sense. Renting is now seen as a preferred choice for singles and families under the age of 35. This means it is a solid time to invest in rental properties as the pool of renters continues to grow.
In May 2017, many news stories declared a new housing bubble. Over the last few months, the market has continued to improve leading to many Americans looking to sell their homes and free up equity while the market is strong. This has seen real estate agents becoming busier. The housing market tends to have a domino effect. According to one real estate agent, “When one sector of the market sees movement. The others follow.”
Recent reports show that the market will continue to grow through 2017 and early into 2018. One hard lesson learned during the 2008 financial crises was that bubbles do not last forever. Most economist state that we will never see a sustained housing bubble like the one in the 2000s again. This has created a “Move while the market is good” approach from investors and homeowners alike.
So Why are Home Owners Selling now?
A recent trend in the US has been for homeowners to sell now, while prices are still going strong. There has also been an increase in demand in the rental market. Some home owners are deciding to free up their equity and enter the rental market as a long term investment. If they do predict correctly, and the market does slump in late 2018, they just might find themselves with equity in a new buyer’s market.
With the housing market continues to be debatable, many insiders speculate if this is a bubble, it will be short-lived. They would tell you that if you are thinking of selling your home, now may be a good time. However, they might also say if you are thinking of becoming a real estate investor and buying rental units for a long-term hold, there is never a bad time to invest in real estate!