6 Interesting Things Currently Happening in Real Estate
There is always a lot of chatter surrounding the real estate world, and these days, nothing ever sounds too surprising to agents who have been in the field for years. While the most experienced agents, buyers, and sellers are likely to stay up to date on some of the recent trends in the housing market, there are still some things going on that are truly hard to believe.
1) Buyers are paying in cash
Mortgages almost seem like a thing of the past now that people are making more cash offers on homes than ever before. Why? Well, think about it. There’s a lot of paperwork involved with mortgages, but when there’s a cash deal, things just get done quicker. And, when there’s so much competition to get into a certain neighborhood at a good price, people want to be the first ones to call “dibs.”
Additionally, people realize that mortgages in general are unpredictable, based on the history of the housing market. Smart investors, therefore, want to make smart decisions regarding the homes they buy, and there’s no doubt that buying in cash has a lot of benefits long term.
2) People are offering more than asking price
As bizarre as it may seem that more and more people are making cash offers on homes, what’s even more unusual is that more people these days are offering a higher deal than the asking price. It seems insane that anyone would do this in the first place, but when this trend is happening on such a wide scale, we start to wonder what it’s all about.
People don’t want to get into a bidding war in highly competitive markets, so they offer more for a house to seal the deal, as opposed to negotiating and saving some money. Of course, there can be one big risk with this, and that’s that homes may not appraise well after paying more than what it was initially valued at.
3) Homes go fast…er than ever before
People planning on taking their time to go house hunting may need to reconsider their timeline, as houses are going faster than ever before. Of course, real estate agents may have been noticing the need to hop onto listings quicker than ever before. In the grand scheme of things, this is good news for everyone, but it goes to show how unpredictable the housing market can be.
4) Too much data is negatively impacting real estate agents
Today, almost anyone can claim to be a real estate agent. With so much information online about buying or selling homes, the quality of life in a certain area, a home’s history, etc., more often than not, exchanges can be made between buyers and sellers without an intermediary — the agent. While it’s nice that so much data is available, we have to wonder how this will impact the jobs of real estate agents in the long run.
5) Rent prices are changing the game for millennials
It’s no secret that rent prices in cities and even small towns across the country have absolutely skyrocketed in recent years. This has led people, particularly young people, to consider buying a home in the city they are working in instead of renting. This is because even after closing costs, property taxes, renovations, and all the other costs that can go into buying a home, the monthly payments on a mortgage will still come out cheaper than renting one in most cases. And, why not have something to show for all that money you’re spending every month? Buying just makes sense.
6) People are buying homes for different reasons than before
Every person buys a house for a different reason and agents are aware of that. People are no longer buying homes simply as emotional investments. But, this continues to change in shocking numbers. For instance, Vancouver has just seen a splurge in the prices of single-family homes, similar to other cities.
This means that people who are looking for an emotional investment, therefore, have to look elsewhere — like condos — to be able to afford what they’re looking for. But, in addition to that, people are also looking to get creative with their home buying choices, whether it’s to flip a home, rent it out, or simply buy land and build on top of it. Real estate agents need to constantly be aware of what motivates buyers and sellers before getting involved.
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