So how will the real estate market do in 2018? There are several facts that we need to ponder on and explore, by taking a look at the real estate trends. 2018 is a year in which the market, hopefully, is going to recover from the hurricanes in Texas and Florida, and the fires of California.
The real estate market of the United States has been in a morbid state for quite a long time. Though the real estate bubble and recessionary cycle has officially ended in the 2009-2010 financial year, you can still see the repercussions of it in the financial markets.
Here is a brief yet comprehensive description of the current real estate trends in the United States. Before that we will first see how the real estate market works.
How Does a Real Estate Market Work?
Now even if you are just thinking of buying some real estate, the first thing that any real estate agent, broker, or Realtor would tell you is to do your homework, not just sincerely, but regularly. Hence, here are some notes which would help you to grasp the basic mechanisms of the real estate market.
It must be noted that any kind of market under the sun works in accordance with the mechanisms of demand and supply analysis. In such a situation the following two conditions may be observed in the real estate market.
Things to be Kept in Mind Before Investing in Real Estate
The following is true with any market, but we are talking here in the sense of the real estate market.
- Higher demand for property in a certain geographical region, tends to push up the price of the real estate in the said region.
- The second aspect is the price fall. Conventionally, the lack of demand leads to the fall in the market prices of real estate.
Now there are certain reasons as to why the demand for property increases or decreases. Here are some common ones:
Why Does the Price of Real Estate Increase?
A rise in prices is usually observed in cases where the region starts developing rapidly as a result of industrial activity in the vicinity. In some cases, such as in several areas of New York or Washington DC, the demand simply rises due to the fact that earning population of the region is simply too large. Substantial economic empowerment or the creation of amenities also forces the real estate values to shoot up drastically.
Why Does the Price of Real Estate Decrease
A general drop in the economy, bankruptcies, foreclosures, excessive lending and breakdown of mortgage and lending industry are some of the reasons that lead to the fall in the demand for property in a certain region or locality.
Industry experts have commented that reasons such as overcrowding, lack of proper civic amenities, or even pollution can lead to a substantial drop in the real estate demand.
Real Estate Trends
On the whole, good demand leads to good market price, bad demand attracts bad market price is the common and also the universal rule of real estate market prices. Apart from these, some phenomenon such as war, extreme disasters, government, and laws made by the government can influence the values.
However, it must be noted that such instances occur quite rarely. The list is made on the basis of rankings from America’s, Urban Land Institute. So read on and get acquainted with the real estate trends of 2018.
Closeness to Tech Giants
The Pacific region is home to tech giants and hence, attracts the most educated employees from different parts of the country, and the world. The wealthy companies make the surroundings push harder to be at par and most of the times, it’s the generated wealth of the companies that flows around, making the place an ideal home for the 21st century employee. Although the prices are high, the land experiences an obsessive demand. Millennials and the soon to come gen Z will be one of the top buyers.
The southern region and the region of south Atlantic and Florida is now and will in the future enjoy a good market due to various basic factors like good weather, attractive cost of living, and an abundance of employment opportunities.
Mountain Lovers Contribute to the Real Estate Market
According to the Urban Land Institute a high quality of life is the prime reason behind the growth in the real estates of Denver, Boise, and Salt Lake City, which were hard to find in the list a year ago. The other reasons are: tourist attractions, technological growth, and relocation of industries in lieu of ease of business. 2018 will experience competitive prices being hurled at these markets.
Well Connected Regions are Still Strong in Real Estate
The prime reason behind the growth of areas like New York City, Boston, and Brooklyn is that they are well connected with desirable neighborhoods and technological growth. Pittsburgh owing to the recent deals being made between the educational institutes and robotics companies will experience an upsurge in the market.
The Midwest is Destroying Negative Rumors in Real Estate
The Midwest ensures a high quality of life in an affordable price says The Urban Land Institute. It may have faced a bit of a challenge in the past, but today and tomorrow it does show a lot of promise owing to a healthy price and catering to an educational crowd. This area is ready to rise.
The markets are looking strong not just for the millennial or the gen z, but for everyone. Some of the areas have jumped a remarkable number of places and made it to the top 20, and others took a hit and slipped down to lower rank. This age being a technological age, the vicinity to the tech giants and well developed surroundings is what people will be looking for in the near future.