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Real Estate: A Look Five Years Into the Future

Posted on June 14, 2014

After the historic bursting of the proverbial real estate bubble brought the U.S. economy crumbling, the U.S. housing market has been on the rebound in recent years. Several factors come into play when forecasting the real estate market’s growth and change in the next five years

Home Values and Appreciation

In a survey done by Pulsenomics, the annual appreciation will be 3.94% over the next 5 years and the cumulative appreciation will be 19.7% by 2018. The survey also found that home values will appreciate by 4.5% in 2014.

Home Prices

Studies show that in some select markets, such as San Francisco, home prices may rise as much as 3% over the next 5 years. However, due to investors selling off their inventory, prices overall are forecasted to drop slightly over the same time period.

Mortgage Rates

According to CBS’s MoneyWatch, mortgage rates may be likely to rise, however a mortgage will be easier to secure for an average homebuyer. The rising rates will force lenders to loosen their lending standards. There was also a new federal rule that came into play in early January affecting mortgage standards.

What will real estate be like in five years?

The National Association of Realtors classified 2013 as a low inventory year, however it is projected that available home numbers have rebounded, allowing buyers a better selection and opportunity. This is only going to improve over the next five years according to current rising trends.

Fading Foreclosures

The increase in inventory will give way to a decrease in foreclosures. Between November 2011 and November 2012, when inventory was at a high point, mortgage delinquency rates fell from 7.83% to 7.12%. It is projected that in the next five years those rates will continue to decline.

Why Buying is Cheaper Than Renting

Posted on May 31, 2014

In a report released by Trulia earlier this year, it was found that it is still cheaper to pay a mortgage versus paying rent. Over 100 of the largest metropolitan areas were surveyed, and renting was nearly 40% more expensive than purchasing and making payments on a home.

Even with home prices on the rise, low mortgage rates have made payments manageable, and in most cases less than a monthly mortgage payment for the same space. In fact, mortgage rates would need to rise by over 10% in order for renting to be cheaper than buying, and rates haven’t been that high in over 18 years.

It is also important to keep in mind that purchasing a home is an investment, rather than simply a monthly housing cost. Although home price fluctuations have widely varied in the past decade or so, forecasts look good for the housing market overall in the coming years.

5 Hot Trends In New Construction

Posted on August 22, 2013

You’ve decided to build for the freedom to select the amenities and finishes that match your lifestyle and tastes. Here’s a list of five trends to discuss with your builder.

1. Smart House
Automating systems like heating, AC, security and lights can save you money. You can even control systems when you aren’t home by using your iphone.

2. Media Madness
Media rooms that only serve one function are becoming a thing of the past as home sizes shrink. Media still plays a huge role for many when deciding on a home layout, but the media rooms now have more comfortable seating, tables and good lighting. They are intended for more frequent usage than movie theater style rooms of the past.

3. Bye Bye Bulk
Smaller new homes call for smaller furniture pieces, including built ins. Consider swapping out a heavy wall of cabinets for floating shelves. Less bulky furniture also allows more natural light in.

4. Go Low
Check out more energy efficient toilets, faucets and appliances. It’s better for your utility bill and the environment.

5. Reclaim It
Go on the hunt for reclaimed materials that can be integrated into your home’s design. Look for rustic wood, light fixtures or cabinet pulls that will give your home a one of a kind feel.