Housing Market Forecast 2024 & 2025: Predictions for Next 5 Years

20230526050150_64703d3e3d1f7.webp

As we move into 2024 and 2025, the housing market is likely to see some significant changes. After a tumultuous couple of years, there is some optimism about the future of the housing market. However, there are also concerns about rising interest rates, inflation, and a potential housing bubble. In this article, we will take a closer look at the Housing Market Forecast 2024 & 2025 and make some predictions about what we can expect over the next five years.

Introduction

The housing market has been on a wild ride over the past few years. In 2020, the COVID-19 pandemic led to a sudden and severe downturn in the market. However, the housing market has rebounded strongly in 2021, with record-high prices and a surge in demand for homes. With the economy showing signs of recovery and interest rates at historic lows, many experts believe that the housing market will continue to grow in the coming years.

Housing Market Forecast 2024 & 2025: Predictions for Next 5 Years

Increased demand for affordable housing

One of the biggest trends in the housing market over the next five years is likely to be an increased demand for affordable housing. With home prices at all-time highs and many people struggling to afford homes, there is a growing need for more affordable options. This could lead to an increase in the construction of smaller, more affordable homes, as well as a rise in the popularity of alternative housing options like tiny homes and mobile homes.

Continued growth in suburban areas

Another trend that is likely to continue over the next five years is the growth of suburban areas. Many people are looking to move out of crowded cities and into quieter, more spacious areas. This has led to a surge in demand for homes in suburban areas, and this trend is likely to continue in the coming years.

Rising interest rates

One concern for the housing market over the next five years is rising interest rates. While interest rates are currently at historic lows, they are expected to rise in the coming years as the economy recovers. This could lead to a slowdown in the housing market and make it more difficult for some people to afford homes.

Potential housing bubble

Another concern for the housing market is the possibility of a housing bubble. With home prices at record highs and demand outstripping supply, some experts are worried that the market may be overinflated. If this is the case, a correction could be on the horizon, which could lead to a significant downturn in the housing market.

Increased focus on sustainability

As concerns about climate change grow, there is likely to be an increased focus on sustainability in the housing market. This could lead to an increase in the construction of eco-friendly homes and the retrofitting of existing homes to make them more sustainable. Additionally, there may be an increase in the popularity of alternative housing options like tiny homes and shipping container homes, which are often designed with sustainability in mind.

Growing popularity of smart homes

Smart home technology has been growing in popularity in recent years, and this trend is likely to continue over the next five years. With the rise of the Internet of Things (IoT) and the increasing availability of smart home devices, more and more people are expected to embrace this technology in their homes.

 

FAQs

What will happen to home prices over the next five years?

It's difficult to predict exactly what will happen to home prices over the next five years. However, many experts believe that prices will continue to rise, although at a slower pace than we have seen in recent years. Rising interest rates and concerns about a housing bubble could lead to a slowdown in the market

Previous Post

Home Values Will Decrease, Making It More Affordable for Buyers

Next Post

Global Real Estate Market Report 2023: Comprehensive Analysis and Forecasts

Related Posts

20230526054039_64704657c0b97.webp

Find Great Real Estate Deals

  • 07, February 2023

3 SIMPLE TIPS TO FIND GREAT REAL ESTATE DEALS ANYWHERE

In a hot market like the one US is experiencing now, it’s hard to find great deals. Everything is overpriced; median real estate prices are up 160% since 1990, whereas incomes are up 90%, according to seekingalpha.com. Yet, there are great deals up for the taking and this applies with foreign properties also. However, you don’t want a property that will eventually turn out to be a money sinkhole. What should you look for while on the search for your next profitable real estate investment.

1.     Less Risky.

All real estate investments are risky. However some investments are more riskier. There are so many things that can go wrong with development of real estate, land, Tenant-in-Common (TIC) investments, private real estate funds and fixer uppers. These investments are high risk. You may not see a dime of the money you invest again. Before you put money down, it is necessary to do considerable due diligence, analyze, test, review reports etc., to avoid making risky real estate decisions.

2.     Fair cash-on-cash return.

Your stocks, bonds and other financial assets generate a rate of return of between 4% to 6%. Real estate shouldn’t be an exception. It is necessary to shoot for deals that give a fair cash-on –cash rate of return. This means that you need to buy cash flow positive properties and always pro-forma your deals. Check how pro-forma works in real estate investments

3.     Doesn’t take too much of your time.

If you have to travel every week to check out the status of your investment property, then it’s not worth the effort, money and time. These type of properties require considerable time and energy investment before they become smart investments: vacation rentals, low quality properties in bad areas, college rentals etc.

Here are four basic hints you also can use to find great real estate deals, regardless of whether you're searching for an investment property, a property for your business or just a home for your family.

 

 

 

1. Be the first. . . Or the last one.

In real estate, often the old adage is true: The early bird gets the worm.

Often, it is not the highest bid for a property that is accepted, it is simply the first. So, if you are looking to find great real estate deals, be quick about it! Obtain prior approval from a bank so you can jump to any property immediately, and let your real estate agent set you up with automatic email alerts notifying you of any new property coming to the market. So, do not delay - check it out quickly, and make an offer the same day if possible.

On the contrary, another way to find great deals is to look for properties that have been in the market for a long time. Such homeowners are often much more willing to sell for a discount because they are tired of clinging to that property. Many times, they have been making two mortgage payments for months (or years) and will entertain almost any offer.

2. Approach absentee owners in private.

Some of the best kinds of deals can be got from absentee owners, which simply means someone who owns a property but does not live there. They may be landlords (who hate their tenants) or homeowners who inherited their homes and simply do not know what to do with them. You can find these deals in a number of ways, such as:

Drive around, look for vacant homes, and use public records online to track the owner

Buying a list of public records using an aggregate list site such as ListSource.com

Calling mom-and-pop owners who are listing "for rent" properties on Properbuz. Let them know that you are not interested in renting, but would like to talk to them about the purchase.

3. Take a look at a large number of deals.

Finally, recognize that finding discounted prices is basically a "numbers game." You may have to kiss a great deal of frogs to get the prince!

Whether you want to buy an investment property, buy a home for yourself or buy real estate for another reason, keep in mind: You make your cash when you buy. If you wish to have immediate equity on your investment, which can help you build prosperity in the foreseeable future, or save in case there is an economical turndown, you must find great real estate deals.

By Bebuzee Admin Read More
20230526052122_647041d211733.webp

3 Steps to Determine the Fair Market Value of Foreign Real Estate

  • 01, August 2023

You don’t want to pay excess on a property. So, it’s important to know what a home really costs on the equity scale

Real estate whether home or abroad is a substantial, long-term investment. It is therefore imperative that you research various countries and neighborhoods before choosing one to invest in because economists agree that there is an opportunity cost to investing in a particular property.

Your research should include the existence of changing political and economic scenarios, as these would have profound impact on the housing market, especially influencing central bank rates and lending policies.

Factors Affecting Market Value of Foreign Real Estate

Location is critical. Apart from the real estate conditions existent in the country, you don't want a place with high crime rate and bad transport system. But looking ahead, you have to examine the profitability of your investment. Home appraisers looking at homes consider features like property age, lot size, internal square footage, number of bedrooms and bathrooms, amenities and overall condition. Hence the first step in determining your home's market value is taking an appraiser’s glasses and looking at the home objectively, writing down the principal features of your home.

How to Determine Market Value of Foreign Real Estate

Valuing a home is not an exact science but here are some things you can do to make a ‘scientific’ guess on the fair market value of a property abroad.

1. Check out comps.

Find four or five comparable homes in the area that have sold within the past six months. A local agent should be able to help you with that data. Your research on comparable homes (comps) will give you a good indication of what your intended property might be worth. Comparable homes should be roughly the same size, construction, age and style with the same number of rooms, layout and other features. You want to identify the prices at which these properties sold and how fast they left the market.

2. Calculate the rate per square foot.

For each of your comps, divide the selling price by the square footage of the property. This gives you a price per square foot or PPSF. Find the average value of these homes by adding the PPSF figures and dividing by the number of comps you are using. For example, suppose it has the following compositions:

Property A is 2,000 square feet and sells for $ 420,000. The PPSF is $ 210.

Property B is 2,200 square feet and sells for $ 480,000. The PPSF is $ 218.

Property C is 1,900 square feet and sells for $ 390,000. The PPSF is $ 205.

Property D is 2,000 square feet and sells for $ 475,000. The PPSF is $ 237.

The average price per square foot is $ 217. Multiply this figure by the number of square feet of your home to get a rough idea of ??the market value of your home.

3. Consider the special qualities of your home.

While the PPSF gives a benchmark, it does not take into account the unique features that could raise or lower the value of your home. Improvements like a new bathroom, kitchen or siding tend to add value; On the contrary, it is likely that a home in poor condition will have a lower value than a well-maintained property. There is usually a wide variety of prices per square foot based on these factors. Ultimately, you have to decide if your home is worth more or less than the average PPSF in your neighborhood.

 

 

By Bebuzee Admin Read More
20230526051108_64703f6cb7ec4.webp

5 Home Staging Tips to Make Your Kitchen Look Amazing

  • 18, September 2023

The kitchen is the heart of the home. There will never be a day in your life when you don't enter the kitchen for some reason. It is where groceries go in and delicious pizzas and finger licking butter chicken comes out. The kitchen is where the children first learn to be of some service. It's also where you hone your cooking skills by trying new recipes.

 

The design of the modern kitchen has created an evolution in function that has made the kitchen a place of entertainment. An open kitchen is a place for socializing and hanging out with friends and families. This helps families spend more time together. You can keep an eye on your daughter while you cook. Your spouse can perch herself on the counter and regale you with tales from her workplace, you can share a bottle of wine with your friends as you cook.

 

Being such an important part of the home, it's important that home sellers make the kitchen attractive to prospective buyers. Here are some home staging tips to make your kitchen spark more attention from prospective buyers.

 

You want to make your kitchen radiate a fresh 'feel'. Buyers should want to stay a while longer in your kitchen. Although the process of staging your kitchen may warrant a few inconveniences, it's usually worth it because an attractive kitchen will sell your home faster than any other thing you do to prepare your home.

 

1. Make it sparkling clean. Obviously, buyers won't be able to imagine themselves in your home if your home has a dirty kitchen. The neater your kitchen looks, the better. From kitchen windows, to rugs, to stoves and dishes, make sure that everything shines. Hiring a professional cleaning company might be worth the cost.

 

2. Apply fresh paint. A quick and easy way to make your kitchen appear fresh is putting fresh paint on walls. Let the colors used complement colors of cabinets and drawers to bring out cohesiveness.

 

3. Use energy efficient lighting. Another relatively inexpensive tweak to make your kitchen feel fresh and new is updating lighting with energy efficient and bright ones.

 

4. Update kitchen hardware. Buyers love a kitchen with updated fixtures. Don't leave your kitchen with old kitchen faucets and outdated lighting fixtures. Inexpensive, simple updates like garbage disposal, stainless steel appliances, faucets and cabinet hardware can make your kitchen appear new and attractive to prospective buyers. You can also go a step further by adding some pizazz to your countertops. You can put in decorative canisters, herbs, bowl of fruit, new cookbooks and new tea towels, etc.

 

5. Declutter. Decluttering may be the hardest part of staging a kitchen for sale. Your kitchen should no longer reflect you, but it should give potential buyers a chance to use their imagination. The easiest way to start the process of decluttering is to completely clear off your counters, then only put selected decorative items to fill in and soften the corners of a long expanse of countertop.

An ugly kitchen can make the home sit on the market for long. Staging your kitchen right might require some effort and inconvenience but if the property is priced right and looks fantastic, you should only have to be inconvenienced a very short time.

By Bebuzee Admin Read More