Never before have so many people been interested in real estate as a form of investing, and owning a home. Low interest rates, and a lower unemployment rate have helped to jumpstart this intense interest. When the dot com bubble burst and the stock market faltered, people started turning to real estate as a tangible and lucrative investment. Mortgage lenders scrambled to tailor loans to fit most people, regardless of credit, job history, amount of down payment, or size of monthly payment.
Interest rates have risen recently, but not to the levels they were at some years ago. Many people can remember buying a home in the 80s and 90s with interest rates well above 10%. Re financing and adjustable mortgages became more common in this period. It is still a good time to finance a mortgage, if you qualify and can really afford the payments and upkeep of the home.
In some areas, prices are static, and in others, they continue to rise. There has been a slowing in some of the more aggressive housing markets, giving buyers a chance and a choice. With more inventory on the market for longer periods of time, buyers do not have to panic buy the first thing they see – they can look, evaluate, and make offers that are sensible, not anxiety driven.
Still other areas are seeing healthy growth. New construction has become popular, although the majority of homes bought nationally in the US are resales of existing homes. Developers and builders of new construction have a particular interest in the luxury market, as this is where they can maximize their investment. Luxury homes usually take longer to sell, but for a developer the wait is worth it. Often the existence of these new luxury developments causes the value of surrounding homes to rise.
New construction is still very much alive for the middle class family as well. With prices and property taxes rising in many urban areas, young families are migrating to newer developments in the southeast, where there are employment opportunities, good schools, available land, and more house for the money.
The real estate market in general is still fueling the economic growth of the United States, and fears of a “bubble” appear to be localized – and not happening in many areas as was feared.