Real Estate Trends

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Real Estate

Real Estate Trends

 

Home prices have risen nationally three times faster than incomes since the turn of the century, which has made home ownership an impossibility for more Americans than ever before. However do not let that sentence frighten you, owning a home is possible and it is a very easy process to find out if you qualify for home through a lending company.

In many large cities, home prices have outpaced income. In Miami, for example, incomes have risen 16%, while home prices have increased 58% since early 1998. New York's Long Island suburbs have seen just a 14% rise in incomes as compared to an 81% increase in home prices. Boston home prices have gone up 89%, while incomes have increased only 22%.

Even with a downturn in the real estate market looming on the horizon, home sales are still headed for another record year.

The first sector to show slowing is the high-end home market. Because of “overpersonalized” big-ticket properties, the pace of house auctions nationwide has surged.

Low interest rates are the only continuing positive trend of the housing market. Low rates average now less than 6% for 30-year fixed-rate loans, the lowest since the 1960s. I believe that is one of the reason to buy now because the interest rates could very well increase at any time.

Real-estate analysts believe that if the housing market stalls, some areas will continue to grow modestly while other markets gradually go soft, rather than pop.