According to CBS Boston, real estate forecasters predict that housing trends will continue on a positive path throughout the spring and into the summer. The general consensus is that almost all major housing markets across the United States have passed their bottoming out points and are on a steady upward trend. California is doing significantly better than the nation at large and has six of the seven metro areas with the fastest rising home prices, Realtor Mag reports. Trends to look for in Q2 are all beneficial to house flippers and real estate investors, further showing that now is the perfect time to jump in to the fix & flip market.
1. Homes will sell faster and faster. As home prices continue to rise and inventories remain well below their usual numbers, homebuyers are jumping on new listings days and sometimes minutes after they are posted. It’s not uncommon in this market for homes to sell quickly, and many sellers are receiving multiple offers well over their asking prices, particularly in California markets. This trend will continue as home prices rise and buyers become more anxious to find a house before the prices get out of their budget range. This is great news for investors who are likely to put their properties back on the market within a year at a significant ROI.
2. Financing costs will stay affordable. While it is very unlikely that the federal mortgage rate will drop any lower, it’s also quite unlikely that the rates will go up significantly over the next year, and certainly not in the next few months. While buyers might see slight increases in mortgage rates in the coming months, housing market analysts predict that rates will remain low for at least another year to help stimulate further growth and confidence in the national housing market.
3. Rent prices will continue to increase, pushing more people to buy. For many Americans, the coming months will show that buying a house is a much more affordable and smarter option than continuing to rent. Spikes in rent across the nation will drive more people into the housing market, creating even better odds for property investors to obtain maximum ROI on their investments.
To learn more about the current housing trends or to talk to an advisor about residential rehab loans, contact ZINC Financial today. Our team can provide you with the funding you’ll need to be competitive in the current housing market.