Real Estate Trends to Know Before Joining the Rental Business

In the real estate business, there are times when things are bad for sellers, but everything can change in the blink of an eye. If we observe what has been happening in 2019 from the point of view of Australia, we can say that there have been certain challenges brought by softer economic growth. However, can we say that the situation overall is improving for both sellers and buyers? If you are about to join this industry, it’s time to acquaint yourself with some real estate trends!

The slow rise of home prices

You are probably already familiar with the fact that 2017 and 2018 were the years when home prices jumped, and it was 10% above their peak. It is happening again this year, however, at a much slower pace. There will also be 1% more homes for sale, which is not much but it is still something one can work with.

What does this bring to both sellers and buyers? The first group is definitely going to benefit from it because they can expect a nice profit. However, since now a smaller population will be able to afford a new house, they can expect fewer offers for their home.

They should watch out for the competition and do everything in their power to make their house be the one standing out. They will also want to wait for the right offer, and not sell it to the first buyer they come across, who might try to negotiate a smaller price.

On the other hand, buyers will have to figure out a monthly payment their budget can handle. They will have to choose wisely without rushing. People looking to buy a home might want to save money first and sacrifice some other things they want in order to have enough for the house of their dreams.

Additionally, they should also think about expanding their search. There are an amazing house and land packages in Austral. This is for those who like Sydney, and lately, more and more people have chosen to move there.

Rising mortgage interest rates

Mortgage interest rates used to be at a standstill, but they are about to rise. If we are talking about a 30-year mortgage, the increase will be to an average of 5%, and a 15-year mortgage will be 4.4%. They haven’t been this high in seven years. The Federal Reserve decided to increase short-term interest rates because they wanted to stabilize the strong economy and inflation which was rising during the past few years. What they expect is a trickle-down effect.

It is recommended for sellers to make plans for their house to be on the market longer and they can prepare for fewer offers. Many buyers will want to pause with these big decisions because a mortgage is quite a commitment and now when the interest rates are higher, this is the understandable cause and effect.

Millennials are the majority of home buyers

Millennials are getting older. Therefore, they are also finding careers that are more stable. These young people are mostly focused on middle and upper-middle class neighborhoods. Since more and more baby boomers are retiring and downsizing, millennials will be the pioneers in the number of mortgages. It is a perfect time for them!

Sellers may impress millennials, who are quite internet-savvy, by making an adequate internet page where they will be able to easily see the homes online. The more sustainable and usable spaces they encounter, the better it will be for the sellers because this is something this generation pays attention to. They also want a location with the lifestyle of big cities, but more affordable prices. Lastly, millennials like energy-efficient homes, and if they have smart appliances – it is going to be perfect! If sellers want to thrive in their job, they should know exactly what their young customers prefer.

There is no business that is easy, and whenever we want to start a new one, we should collect all the necessary pieces of information. If you are thinking about this profession, you should keep yourself updated regularly with the important happenings concerning this field – know about the home prices, mortgage interest rates and what different buyers prefer.