The home buying market is always shifting in one way or another. For any Michigan hopeful looking to secure their first home, buy additional property, or secure a new dwelling for another reason, getting to know the current and upcoming trends will be beneficial. Luckily for you, this guide has collated all the facts in one handy place so that getting up to speed will be as easy as ABC.
Suburb Living Leading the Way
The first thing to take note of is that people are deciding more and more to move out of the urban areas and into the suburban ones. This is affecting all sorts of things, some good and some bad. Most of all, it means there is a surge in demand for suburban style housing, where the grass is greener, and the air is cleaner. So, the house prices may go up on this style of property, and securing a purchase will become competitive to say the least.
Why do people want to leave the cities? Various reasons are contributing, from a desire for better space with bigger rooms, to the need for a more peaceful existence. The limits of inner-city living are now more apparent than ever, especially with financial turbulence and rising crime rates too, so the outskirts seem like a more attractive prospect, and for good reason.
Rental Property Shortages
There has also been a significant decline in availability in the rental sector, which means landlords are selling up and moving on. It doesn’t make anywhere near as much sense to own a portfolio of property for tenants in the current economy, so there is a lot of housing coming onto the scene that was once tenanted. This means there may be a drop in standards of what’s to offer, and that pricings will fluctuate for a while to come while the market readjusts. For buyers, it is definitely something to look out for as it may also mean a flux of property that needs a lot of renovation, so these are real investment projects, so to speak.
A Potential Rise in Interest Rates
There is a real debate circling currently about whether or not it is worth pursuing a house purchase. This is largely because of a significant rise in mortgage rates seen by lenders in recent years, which is only predicted to continue for a substantial while longer. However, there is still value in owning property vs. renting, and it all boils down to the level of commitment you have to finding a mortgage when the time comes. Finding reliable Michigan mortgage lenders will enable you to take that all-important first step towards ownership, and you can have a frank conversation about the projected rates to ease your mind.
Rising House Prices
All of these factors will undoubtedly contribute to a rise in housing prices, as is already being seen in the current trends. There has been around a 30% rise in average prices in the last few years which is absolutely groundbreaking in terms of what it means for first time buyers and the like. It increases things like the amount of deposit needed to secure a mortgage and puts equity at risk of depleting if there are to be any major shifts in the housing market moving forward. People are nervous, and rightly so, but there is hope yet that things will change for the better. It all depends on what happens next, and that is always a question worth exploring.
So, there is a lot to digest, which dictates how viable it is to buy, and what the options actually are. Keep an eye on the storm because there is always a way forward.