It seems like at the end of every year we tend to wrap it up with reviews and lists to summarize the year’s activity. So we thought it would be fun to summarize three big stories in real estate so far this year. Sit back, relax, grab a cup of coffee, and find out what you might have missed.
Investors Enjoy a Resurging Market
House flipping declined significantly after the financial crisis of 2007-2008. But thanks to low interest rates and increasing home prices in the current market, there is a resurgence in home flipping. The renewed interest is being driven by investors hoping for a high return. Last year, 5.7 percent of nationwide home sales were flips, and represented the highest amount since 2006 according to ATTOM Data Solutions.
New Home Sales Grew by 18.9 Percent in September
Sales of new single-family homes in the U.S unexpectedly grew in September, hitting their highest level in about 10 years. This brings the hope that the housing market is regaining speed again after stalling in recent months.
The Commerce Department announced “that new home sales surged 18.9 percent to a seasonally adjusted annual rate of 667,000 units last month amid an increase in all four regions. That was the highest level since October 2007 and followed August's upwardly revised sales pace of 561,000 units.”
More People Think Renting is Better Than Buying
A growing percentage of today’s renters believe that it’s cheaper to rent a house than to buy one. This explains why the homeownership rate in the U.S remains stubbornly low nearly a decade after the housing collapse. A boom in new apartment construction in the past several years has caused rent increases to begin to slow down in many U.S. cities, while increases in home prices have accelerated over the past year. Now, according to Freddie Mac, roughly 76% of renters surveyed in August said they think renting is more affordable than owning a home, up from 65% in September 2016.
This may encourage investors to hang onto the properties they are renovating and consider keeping them as rental properties.
There never seems to be a dull moment in the real estate investing market, and this year has been no exception. With surging home prices, attractive rental rates, and low interest rates, it’s sometimes hard to keep up with all the changes. Patch of Land is here to help keep you informed about all the latest news and trends. We a looking to a strong year end and ringing in 2018 with continued optimism.