The real estate market is an ever-evolving and a complicated sector. Over the years, the real estate market has seen significant development. Not only has it seen an increase in value but also follows a certain trend. The real estate market is constantly reforming, and therefore, the sector has seen a great regulation in the tax for the business environment.
The real estate marketers are, therefore following certain norms and trends to ensure proper business. Several countries have been able to jump in their economic position due to the boost in the real estate market. Moreover, the contribution of the companies and government to bring in the reforms has also helped to boost the business.
Mortgage rates will be high
As per experts, the mortgage rates will keep on increasing, which have been low in the past two years. The low rates were usually due to the recession and were generally below average. However, the rise would bring about significant economic growth. According to the reports, the mortgage reports are expected to go up by 5.8% defying the older rates.
Home buying power will decrease
Most of the homeowners have a limited budget for monthly payments. As the mortgage rates and prices will increase, the fixed rates would have a significant impact. The buying power would eventually decrease by 10% than the previous year. Comparatively, there are fewer buyers than usual, which are proving to be harmful to the market. Moreover, there is a slow market response as well, and the easing price is low as well. Therefore, the decrease in buying homes is a positive sign.
Price growth will slow down
According to the estimations for 2019, the appreciation value for homes will lower significantly. Comparatively, the appreciation rate may stand somewhere near 3%. This estimation is maintained based on inventory level property estimations for the future.
Regular buyers will see less competition
If you have been a constant investor and property purchaser, you will eventually notice less competitor this year. This is usually because the buyers are looking forward to reducing the price to avoid expensive properties. Nonetheless, this can get problematic for new buyers. This is mostly because the new housing properties that are coming up have a fixed amount with the rate being fixed for high to mid-range and not entry level.
Before investing in real estate properties, it is always suggested to look out for experts. Getting in touch with Papachristou immobiliers can eventually be a great help, and you can stay updated about the new trends as well.