The last two years have been reasonably good for real estate markets in the U.S. considering the low it witnessed in 2012. Foreign investments have raised the hopes of sellers, and tax abatement policies have grabbed the attention of new buyers.
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Our experts analyzed real estate activity during 2014 to forecast the future of real estate in the U.S. and provide the following predictions for home buyers & sellers:
1. Home prices to grow
There is widespread consensus over the improving state of U.S. real estate. As per the latest reports by Urban Land Institute (ULI) Center for Capital Markets and Real Estate, the home prices will continue to rise for next few years, so for investors 2016 shall be the time to find properties that promise high returns. The market has improved locally as well as nationally, which points to continued recovery.
2. Rental market seems to be up
As per Zillow, the rental market has moved up in the U.S. even in cities where real estate market struggled a bit. The supply of desirable rental properties could be one reason of growing rents. Finding a good property within budget looks troublesome so affordable properties have brighter chance to generate income.
3. Bond yield will be less
Real Estate investment will be high as bond yields are believed to touch a new low in future. As per Wall Street specialists’ view, bonds will disappoint as Federal Reserve will not increase interest rates. On the other hand mortgage rates are low so real estate will benefit for giving better returns.
4. Next year could be a good time to sell
If you don’t have an urgent need to sell off your house, wait till 2016 as things might be different in future. One big reason to wait is president election as taxes can be repealed and impact real estate positively.
5. Philadelphia market continues to grow
With construction boom, Philadelphia real estate market has more reasons to grow. Several projects including developments at Temple University, the University of Pennsylvania, Comcast Tower, East Market, etc. and total real estate investments was $6.7 billion. The city is growing on many spheres including infrastructure, employment, which will continue to impact real estate growth next year too.
Although no real estate predictions will guarantee you returns but rational analysis will help safeguard future and assist in taking right decisions.
About the author: Adam Seth works as Senior Property Investment Advisor at National Realty Investment Advisors, LLC. He has helped hundreds of families and investors in owning luxury investment town-homes at small one-time investment. Get in touch with Adam to learn more about profitable real estate investment opportunities in Philadelphia.