This year has come with lots of predictions. The housing and real estate market is flourishing. But is it doing well enough to invest and buy real estate?
Real Estate Affordability
The main concern in both buyers and sellers is the affordability of a home. In order to make the right investment, you must first know your own budget. After you set up a budget, you can search for real estate in your affordability range.
According to Mashvisor.com “Affordability is one of the main reasons behind the slow down in the housing market this year. Many potential home-buyers are now more inclined to rent for housing.”.
Although affordability is still questionable, this should not deter you from investing in real estate. 2019 is a year full of change. With hard work, anything can be achieved, including purchasing affordable real estate.
Housing Inventory in 2019
A question that everyone should ask is: “Are there enough houses?”. As of November 2018, there are more sellers then there are buyers. Sellers are left competing with each other, and buyers are able to close on their first deal.
The areas that are increasing in the housing industry are mainly large cities. Large cities attract people from everywhere, and in metro areas, proper housing is necessary.
Mortgage Rates Are On a Rise
One of the scariest things about buying a home is the mortgage rate. While paying off a house during the buy is ideal, many buyers and investors settle for loans. While they are not recommended, they sometimes cannot be avoided.
According to Forbes, the mortgage rate has been continuously rising for over a decade now. In the next 30 years, mortgage rates that are fixed will rise and surpass 5.8%.
Will this affect the real estate market? It depends on who you ask. Majority of this information was found in the link here.