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Today’s market has changed drastically from the market that we saw pre-Great Recession. The major catalyst for the housing market crash was inflated home prices, an unregulated sub-prime qualification system, and an over lending from banks that were wholesalers instead of direct lenders. Those three elements were the perfect storm to bring the real estate market to its knees. However, there is good new on the horizon with foreclosures beginning to decline, and buyers starting to emerge.
What Is Appealing To Buyers
The American dream of owning a home with a yard, white picket fence, and a dog has now begun to change shape. People are more interested in stable mortgages, space that meets their needs not necessarily exceeds them, and a place that they can look to as an investment rather than a permanent home. Trading real estate online has also become popular, as companies such as UFX Markets Trading offer tools to learn online trading in various aspects.
This line of thought include condos, duplexes, and even apartments. There are many factors that would contribute to this type of buying trend, and one of the strongest is the fact that maintenance fees, homeowners insurance, and property taxes are dramatically lower. For those that are concerned about high mortgages, this is a compelling argument because these additional costs are usually included in an impounded mortgage, thus making that monthly payment higher than desired.
New construction is still in a lull, but the new development is that homes are now being built on a smaller scale, as opposed to the outrageous mini mansions that were popping up everywhere. It is one more indicator of the sign of the times, and how the economy can impact how consumers view home purchases.