We all know how impactful the housing and economy crash was in 2008. Despite this crash and the current economic recovery the housing market is still growing. There’s no reason to be afraid, the housing market continues to exist and thrive. Even though there have been major economic disrupts that may have halted this growth, the housing marketing still continues to plug right away.
Month after month the market continues to bounce back and remains higher than it has in months previous.
In this article we’re going to cover the reasons why the housing market continues to make a full comeback, as well as what you can do to take advantage of that trend.
Why does the housing market continue to make a strong comeback?
Despite everything that continues to happen with the regular economy, the housing market continues to push ahead. According to Freddie Mac, the housing market will continue with their recovery, however it may slow during the fourth quarter of this year.
Mostly due to an increase in mortgage rates, tight availability of houses in many markets, and the slowing of consumer confidence. For instance, mortgage rates are expected to rise by a head in 2014 and probably be around 4.3 percent. Inventories also remain solid since September, as there’s a negative equity, and a decline of stressed sales. The construction industry is also experiencing a dip, which decreases the supply of new homes. All of these will add up to an overall slowing of the market.
Going into the next year, the housing market will be able to absorb these shocks and remain its strong growth into and through 2014. However, don’t expect a complete recovery until well into 2015.
How can I take advantage of this increasing trend?
As the market slows during this quarter it would be a smart time to invest. As prices will be lower than when the market is operating at its peak potential. If you invest now you’ll have your home on steady footing and be able to reap the rewards when the economy is thriving on all cylinders again in a few years, at the most.
Since the growth is expected to continue into 2015, it would be a no loss investment. Worst case, you would be able to sell your property again when the economy is in full swing, as home prices usually increase when the demand is high. Whether you’re looking for a single or multi-family dwelling, make the decision in your future today, and establish your stake in the housing market.
I hope this article has been helpful and you have a better understanding of the constant growth of the housing market and how you can use this knowledge to your advantage. The housing market will continue to recover and hopefully continue on this upward trend. If you were afraid of investing in real estate in the past, fear no longer, the market is strong and now is the perfect time to get a piece for yourself.