zack childress reviews an overview on real estate market performance in 2016 -2017

Zack Childress Reviews an Overview on Real Estate Market Performance in 2016 -2017

Zack childress reviews the housing market has not been stable; Zack Childress suggests some ideas on how to improve home sales in the forth coming years.

2016 -2017 real estate market review

The major cities experienced a hike in the house price, but still the average number of home sales increased owing to the drop in median price of a home.

New single-family home purchase drastically improved. The job sector has been performing very well and unemployment rate is very low or negligible in other words which has made many millennials and middle-aged to purchase a home. The first-time buyers are offered home loan schemes and many benefits which is quite motivating for the young minds.

Another reason for increase on home sales is due to low mortgage rate. NAR has predicted that the home sales will continue to improve in the forthcoming years as well and overall nation’s median price is about to increase.

Residential properties stayed in the market for quite long time, foreclosed whereas short sales took the longest time to sell. Distressed properties were sold historically high and there was drop in prices which was considered to be the lowest. Cash sale share was pretty bad and recorded the lowest. Mortgage debt outstanding recorded the highest comparatively. Cap rate is quite fluctuating past few years.

We could see a rise in the mortgage rate as economy is improving and recovering from recession period. The rental prices and median asking rent have increased owing to the improvement in economy and job sector growth. The rental vacancy rate was the lowest after several decades. It also shows that buyers have started to opt for rental properties as home ownership rate dipped last year.

Office vacancy rate have dropped. Multi-family homes are peak in the market, hotels, CBD, industrial, sub-urban office and retail market is rising.

2018 real estate market predictions

The analysts and professionals have predicted that there is scope for expansion in the economy. We saw a fall in the growth of GDP and it will further fluctuate in 2018. The unemployment rate will continue to remain low and will be maintained below 5 percent which is a positive sign for buyers to invest on real estate. The report suggests that there will be a gain of 1.5 million jobs. Ten year treasury rates are expected to rise. Except single family-home sale rates, other types of residential properties and commercial real estate will see an upward trend. Apartment vacancy rate will continue to improve with respect to borrowing cost.

900,000 single-family homes are expected in 2018. The demand is more and will continue in the following years. NCREIF, an organization for managing and administering real estate investment returns will fall short in all sectors namely industrial, residential and commercial.

Apartment returns will hold steady in the forthcoming years as well as apartment rental rate will increase. The economy is diversified with a variety of markets coming in and expanding its horizons globally. Commercial sector is getting highly benefitted by technological improvements.

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