The recent years have seen a boom in the U.S. housing market. The rising home values and new homes are steadily increasing. But now, it is observed that the market is starting to get effected. So, we need to rethink about our expectations. It is believed that there are few hot trends in the US Housing market which we need to keep in mind-
Decreased space
It is believed that there are plenty of wide-open spaces left in America, but there are hardly any American people who want to move to rural Wyoming or middle-of-nowhere Nebraska. It is believed that in coming years, space for real estate will be at a premium. It is gradually becoming difficult for the builders warwick qld to obtain permits to build homes in thriving metropolitan areas, especially along the coasts.
Budget fits to burst
More and more homeowners are becoming savvy and dedicated in the struggle to block new building in their area. Many people have experienced increased home values, but there are many who have not been lucky. Housing is eventually becoming out of reach for many people. Also, one third of American households spend more than 30 percent of their income on housing.
This is considered one of the hot trends in the US. Housing market. It is observed that many people in US do not earn enough to reasonably pay for a home.
Shrinking square footage
Another hot trends in the U.S. Housing market is that many Americans are starting to seek out smaller homes that are closer to workplaces to avoid long commutes. Many also believe that very soon the American cities will start to resemble European cities, with fewer square feet per person. Also, the housing costs will rise and the number of mid rise buildings.
Many cities are also moving towards the idea of “walkable” communities, where home, work and play are all within a short distance.
Risky lending
Many lenders are constantly coming up with new, more affordable homes but that involve more risk later on. In other words, it means affordable now but ludicrous later. In fact there are many lenders who have also recently decreased the amount of documentation needed to obtain a loan. The overall result of these practices is that many aren’t able to meet higher monthly payments once the “honeymoon period” is over.
Your own private cash cow
Earlier in the past, homeowners striven to pay off home loans as soon as possible. But this is no longer seems to be the case, as homeowners often refinance to take advantage of lower interest rates and swap their home equity for cash they can use for other things. This attitude has led to an increased rate of consumer spending, as well as increased debt among Americans. Many observers believe that this hot trends in the U.S. Housing market can actually affect the market drastically in the near future.
Foreign investing
There are many investors in Asia and Europe who are investing in mortgage-backed securities and bonds backed by interest and principal on large pools of mortgages. It is observed that the foreign investment is bound to continue to increase in the coming years.
Big builders get bigger
At the moment there are top 10 home owner builder qld who account for about 24 percent of the market. There are many big builders who often have the advantage because they have the sway to obtain prime pieces of property.
Discount realtors.
The Internet have paved the way for many discount services, such as airline fares, but real estate agent commissions are still around 5 to 7 percent. Also, many brokers are increasingly offering cost saving deals, such as charging a flat fee.
So, if you are planning to buy a house, you must know the hot trends in the U.S. Housing market.