Real estate or the housing market is one of the hot topics when it comes to moving to a new country or shifting to a new place. Most investors and buyers are attracted to areas with sound economies and housing markets. Therefore, the most concerning questions that investors and buyers ask the real estate agents are. Here are some of the questions and the answers from real estate experts regarding the real estate market,
1. Is the real estate market on the verge of collapsing?
2. We don't believe the real estate market will collapse. Not this year, at least. We're dealing with a housing market that has a lot of demand but very little supply. Although supply is down by more than 20% compared to last year, demand remains high. When there are more buyers than homes, the only thing that can happen is that home prices rise, and people begin to compete for them. The housing market is so erratic right now, but that doesn't imply it'll fall because individuals still have a lot of equity in their homes.
3. When will the real estate market collapse?
4. "I can see the real estate market spiralling out of control in a couple of scenarios," says the expert. If people begin to speculate on homes, assuming that home values will constantly rise, and they begin to acquire homes to sell them, this can become a serious problem and lead to a housing bubble, resulting in a crash. We see an increase in investment interest. It's been rising, and it's now at 18 per cent, potentially becoming substantially higher. If investor activity picks up and people start buying houses solely to speculate on them, I'd consider it a warning sign that the housing market will fall."
5. Why is real estate property so expensive right now?
6. What we discussed is one of the reasons why prices are so high. Demand is outstripping supply. On the supply side, one of the reasons for the low supply is that we just haven't constructed enough homes in this country to accommodate everyone who wants one. The largest generation is the Millennials. We're leaving, and we're starting our own families. And, regrettably, we haven't built nearly enough homes in the recent decade. There were fewer homes built in the 2010s than in any other decade dating back to the 1960s, so there's a lot of demand from millennials and little, if any, supply."
7. When will the property prices settle?
8. If the Fed keeps raising interest rates, it will limit demand because it would make buying a home more expensive, but it will not improve the housing market. It simply implies that fewer people can afford to buy... who can afford to borrow to purchase a home. The only way to improve the housing market and make it more affordable for everyone is to create more. This is the only solution. So, if I were you and I was concerned about the rising cost of housing, I would contact my local lawmakers and tell them that I want more homes built in my neighbourhood. It might take some time.
