Things are moving fast in real estate these days. And the new factors are changing the way homes are being marketed and sold. For instance, the available inventory is really drying up. One of the reasons is that big investment firms are buying up single family homes and renting them out. This has been done for years but it has really accelerated recently. When will that slow down? Not until rental vacancy rates start climbing. This could happen fairly soon (like in the next two to three years) because there has also been an explosion in apartment construction. As the economy improves more of those renters will become owners. But for the near time this demand for rentals will continue to push prices up.
Prices are also continuing to climb because houses are still so cheap. Today’s house prices are incredibly low compared to income and the money needed to borrow is incredibly cheap as well. The problem for most buyers recently has been an inability to get a loan but banks are loosening their restrictions and more people are able to get loans. Again, this is not going to change anytime soon.
So here’s your near future housing market. Very, very little inventory to choose from. Many buyers chasing fewer homes. Prices increasing. This is the time you need to be talking to your trusted real estate adviser to find out what your best move is to take advantage of this market.