June 11, 2024
Understanding the nuances of the real estate market is a full time job, and even then it can still be unpredictable. For example, the national average sales price of a home in the US increased 14.5% over the past five years, according to the Federal Reserve Bank. This alone isn’t too surprising to anyone who has kept up on the rising prices during this period, but what might surprise you is that in the previous five-year period (2014-2019), the average sales price increased 13%. That is just a 1.5% increase thereby begging the question - Did the pandemic market shakeup really change prices as much as many shoppers thought? A greater understanding of the market has led many to realize that, for all its uncertainty, real estate remains a steady and dependable way to invest your money. As President Franklin Roosevelt once said, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
Every day, new buyers begin their search for their next property. For some, it may be a first home, but for others, it is just the next step in their real estate journey. Baby Boomers have either retired or are quickly arriving at retirement age, giving them an opportunity to find new “right-sized” homes, be it down-sizing or relocating to a new hometown. As the Baby Boomers leave the work force, Gen X and older Millennials are receiving promotions, and are looking to upsize, choosing to move into nicer, more spacious homes- especially as their families grow and their children get older. Younger Millennials are beginning to reach higher salaried, middle management positions and are ready to move past the “starter home” phase. Even Gen Z has begun to buy- young families are looking for something better than month-to-month rental agreements for cramped apartments, and are ready for starter homes of their own. The dream of home ownership is still a reality for a large percentage of Americans, especially as they seek the stability and security of owning their own place- along with the freedom that comes with it.
There are other factors that are contributing to a bright future for the market- interest rates , despite climbing, have begun to cool off and lower once again. On top of this, certain regions in the country continue to see record property value increases. In fact, a recent Post Gazette article points out that Pittsburgh has been ranked #1 for the fastest growing sales prices, well exceeding the 6.4% national average, with a 22% price increase over homes sold in February 2023.
Should you worry about your investment in real estate? Absolutely not! Regardless of what type of property you own, the future of real estate remains bright. With improving mortgage rates, buyers will be even more motivated as things become more affordable. With rising sales prices, you can remain assured that real estate remains one of the best ways to invest and get a good return. Owning a home is still one of the best decisions you can make towards ensuring long-term financial security!
Every day, new buyers begin their search for their next property. For some, it may be a first home, but for others, it is just the next step in their real estate journey. Baby Boomers have either retired or are quickly arriving at retirement age, giving them an opportunity to find new “right-sized” homes, be it down-sizing or relocating to a new hometown. As the Baby Boomers leave the work force, Gen X and older Millennials are receiving promotions, and are looking to upsize, choosing to move into nicer, more spacious homes- especially as their families grow and their children get older. Younger Millennials are beginning to reach higher salaried, middle management positions and are ready to move past the “starter home” phase. Even Gen Z has begun to buy- young families are looking for something better than month-to-month rental agreements for cramped apartments, and are ready for starter homes of their own. The dream of home ownership is still a reality for a large percentage of Americans, especially as they seek the stability and security of owning their own place- along with the freedom that comes with it.
There are other factors that are contributing to a bright future for the market- interest rates , despite climbing, have begun to cool off and lower once again. On top of this, certain regions in the country continue to see record property value increases. In fact, a recent Post Gazette article points out that Pittsburgh has been ranked #1 for the fastest growing sales prices, well exceeding the 6.4% national average, with a 22% price increase over homes sold in February 2023.
Should you worry about your investment in real estate? Absolutely not! Regardless of what type of property you own, the future of real estate remains bright. With improving mortgage rates, buyers will be even more motivated as things become more affordable. With rising sales prices, you can remain assured that real estate remains one of the best ways to invest and get a good return. Owning a home is still one of the best decisions you can make towards ensuring long-term financial security!