Each year, the US housing market is subjected to a few changes, resulting primarily from altering socio-economic conditions. Given the culture of constant buying and selling, as people seek to acquire or change residence, it is important to keep an eye on what is happening in the current housing market.
Watching out for these changes helps you maintain your finances, credit score, mortgage rates, and renders working with real estate professionals simpler.
Take a look at some major trends in the housing market right now.
1.Expansion of Medium-Sized Cities
A lot of real-estate growth during the recent months took place in mid-sized cities, as property costs have been driven sky-high in large cities such as New York and San Francisco. Though these cities offer a larger number of high-paying jobs, the living expenses outweigh the general income, and limit living standards.
Medium-sized cities offer considerable personal and professional growth prospects, at affordable prices. Thus the reason young individuals are more attracted to these areas—a trend that is expected to continue throughout the rest of the year.
2.Increased Mortgage Rates
Mortgage rates have risen considerably due to the rise in interest rates by the Federal Reserve.
Combined with inflation in the housing market and slow economic growth, this has created difficulties for both realtors and homebuyers, as people face hardships acquiring loans, decreasing the affordability in home purchases.
3.Rise in Construction of New Homes
The previous year saw a significant rise in the construction of new residential properties. Research data ascertained an approximate 5% increase in the annual average rate of new house constructions. This trend rose this year, and is expected continue.
4.Foreign Investments Will Continue
A large portion of real estate in most major cities has been picked up by foreign buyers, primarily from China and other eastern countries. They invest in these properties as means to store wealth, and obtain returns at better rates compared to those back home.
Another important change in motion right now is lender’s standards for mortgage loans have easing up, paving the way for higher availability of mortgage credit. This is highly beneficial for first-time homebuyers, who are usually held back on making purchases due to increased mortgage rates.
At e-Finance Mortgage LLC, we understand the struggles buyers face in getting a loan for their dream home, and we aim to address those concerns.
From online loan quotes to fulfilling required funding, our professionals make sure your needs are met with efficiency. We provide financial aid for home purchases via FHA loans, VA loans and conventional loans throughout California, Colorado, Illinois, Iowa, Michigan and Washington.
Call e-Finance Mortgage LLC today at (844) 433-4626 to find out what we can do to assist you in getting your ideal home!