5 Things You Need to Know about the Current State of the Housing Market

bigstock-House-wrapped-in-a-stripped-sc-44647423The housing market has certainly experienced its share of problems in the last few years. Several groups have been impacted as part of the mindboggling aftermath. Among those affected are homeowners, professionals in real estate, and the mortgage industry.

As the country struggles to recover and recent statistics cite gradual improvement, there’s still a long way to go in order to fully declare victory. It’s safe to say that property inspectors aren’t in harm’s way, but don’t consider yourself exempt just yet. As a small business owner in a seemingly strong field, it’s still important to frequently gather all the facts surrounding the housing market in order to effectively plan your next moves. Here’s some details that you should keep in mind while moving forward in the trade.

1) Foreclosures are Fading

The distress of many homeowners is dissipating which has resulted in a lower number of foreclosures. As rates continue to decrease, homeowners won’t have to stress about competing with banks to sell homes. This ultimately means more home renovations which will make more jobs available in the construction industry as well.

2) First-Time Buyers are Basically Non-existent

People may be less inclined to sell their homes now, but that doesn’t mean that others are in a hurry to buy property. Recent studies indicate that first-time buyers aren’t in sight. All eyes are on the Millennial generation, but individuals in the youngest age group in the workforce aren’t quick to budge when it comes to investing in a new home. The massive amounts of student debt and difficulty finding well-paying jobs largely contribute to their reluctance.

Although Millennials may have good reason for holding back, their decision puts a deep dent in the nation’s progress. Rent prices will continue to rise as long as the demand for new housing remains low. The mortgage market’s primary aim is combat the negative effect by attempting to find new ways to attract consumers via reset mortgages, short-term ARMs, and other financial incentives.

3) There’s a Correlation Between the Country’s Housing Market Results and Economic State

Public sentiment over the new increase in jobs clearly influences the housing market’s outcome. This is because housing demand is largely dependent on employment growth and restored trust in the economy. Essentially, one element doesn’t exist without the other.

4) Optimism for Banks is Prevalent

As the housing market suggests a positive future, officials also expect major banking institutions that were previously put in jeopardy to make a successful comeback. Impeccable business models that help these entities weather the storms of economic crises certainly helps matters, too.

5) An Abundance of Aspiring Realtors are Hitting the Books

Lastly, people aren’t shy about exploring new employment opportunities in real estate. More individuals are taking their chances with breaking into the industry. Aspiring professionals continue to seek training programs that will promptly enable them to become licensed so they can start building their clientele and promoting properties that are on the market.

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