After more than 15 years, as a licensed real estate seller in New York State, I have witnessed a variety of different, so-called, real estate markets, including: the seller’s market; Buyers market; and neutral / balanced. I’ve seen high, low mortgage interest rates, and it seems like everything is in between. The Bid and Ask rules have fluctuated dramatically from time to time! In recent times, a combination of factors, especially since the onset of this horrible pandemic, has included: record / historic low interest rates; Limited inventory of homes, for sale and changing priorities, of qualified potential buyers (in terms of location, style, size, priorities / perceptions, etc.). However, the reality is that at some point the market is likely to change again and with that in mind this article will briefly attempt to consider, examine, review and discuss, 6 likely, intermediate – term, changing, real estate trends .
1. Gradually going up, mortgage interest rates: These record low rates will eventually go up. This will likely occur gradually based on general interest rates, which are largely determined by the policies and actions of the Federal Reserve Bank. Extremely low rates make buying homes more desirable, because like most, it depends on a mortgage, it means they can pay higher prices, etc. The current low rates are due, in large part, to perceived weaknesses in the broader economy. If, and when, general economic conditions appear to be improving, and / or there are improved inflationary trends and tensions, rates will most likely continue to rise.
2. Return to a more balanced market: We will probably see more balance between the number of buyers and sellers in the intermediate future. This will probably take some time, because we are living in strange and unpredictable times. If / when more homeowners decide to sell their homes, the change will begin!
3. Shifting and desirable trends and priorities: Today, due to the impacts and ramifications of this pandemic and associated public health-oriented restrictions, many buyers appear to be leaving the city in search of a less dense set of conditions. Some priorities seem to include: more interior space; different interior features / priorities; enough land, to be comfortable; and other amenities, etc.
Four. Energy / heating sources: Many are looking for more sustainable energy sources to meet their heating and electricity needs. needs. We can probably expect, more use, of solar panels, geothermal, and more energy efficiency, etc.
5. Change of tax considerations: When the 2017 tax reform legislation was enacted, it included, SALT restrictions, which limited, the ability to deduct state and local taxes from federal income tax returns. This can, at some point, reduce the attractiveness of homes, in certain areas with higher taxes.
6. Different model for property taxes: Certain localities have significantly higher property taxes than others! At some point, this can have a negative impact on how desirable homeownership can be in some regions.
Since, for most, the value of your home represents your greatest asset, doesn’t it make sense to pay close attention to anything that can affect your home’s value? Will you be a prepared, more informed homeowner / buyer?