Is the American Dream of Homeownership Coming Back?
Americans associate the American Dream with opportunity, but that has been in short supply for the last several years -- especially for Millennials and those who have not been able to buy a home yet. In recent years, real estate has been a sellers’ market, meaning that demand for homes has outpaced the available inventory, driving up the selling price of homes on the market. Those who have been shopping around for awhile know just by looking that prices are higher. Home values have increased over 6.2% over the past year, rent prices have increased 1.4% over the past year, and there are 5.7% fewer homes for sale than a year ago, making it more difficult to afford to purchase a home. For those who are selling an existing property before buying a new home, this has been good news - their new home may be more expensive, but so is their profit from their home sale. Those who are trying to scrounge up a down payment for their first house, however, can become discouraged.However, many experts will agree that the current housing situation will shift from what is currently a sellers’ market to a buyers’ market by the year 2019 - or possibly sooner.Seventy two percent of recently surveyed experts said that the tables were likely to take a turn, either in 2017 (17%), 2018 (43%) or perhaps 2019 (12%).As home construction activity picks up, inventory will increase and the market will become less fiercely competitive than it is currently. Home values will slow their appreciation, offering potential buyers a chance to save up for a down payment rather than scrambling to make a competitive offer. Hence, the market will turn in favor of buyers once again.This is great news for buyers, renters, and Real Estate Agents, so hang in there. The trends are looking up! Contributed to by James Link