For many real estate markets, including Florida, Illinois, Michigan, Missouri, and Nevada, recovery after the crash is going well. Interest rates are stable and home prices are on the rise. Right now, there are many good things going on with the market in addition to unemployment inching down.
There is no question that in the states mentioned, it is definitely a buyer’s market. That does not discount rental opportunities but shows that this could in fact be a good time for you to become a homeowner. In the past five years, the biggest price increase for real estate was seen. Considering the housing market was going through a meltdown just prior to that time, a stronger economy is evident. While things are going in the right direction, there are still important factors to consider before buying real estate.
Factors to Consider
With the market looking strong, some people are jumping in without first analyzing some key factors. If you want to build financial security, remember that the economy is still in a recovery phase. Although analysts feel strongly that the market will continue in its current direction, you still need to be somewhat cautious.
While the real estate market has finally turned the corner, the volume of home sales is where it was in 1999. In the meantime, inflation-adjusted prices are at 2000-to-2001 levels. Even construction is currently up, with a significant increase in the number of building permits issued. While this is all great news, current numbers are still not even close to recent highs.
Something else to consider is that while the real estate market for Florida, Illinois, Michigan, Missouri, and Nevada is doing well, other parts of the country are lagging behind. If you plan to purchase a home in one of these states, you may face challenges of low inventory and high competition.