When we think of investments we think of stocks, bonds, funds, currencies, commodities, etc. Little do we think about the most profitable of them all—Real Estate. In today’s world, investment in real estate means watching your money multiply substantially within a very short period of time, unlike in other investments, where patience is required to see gains. This does not mean that prices of real estate do not ever drop. In real estate, if one looks into the market data, it will become self-evident that prices of real estate are rising not only in the United States but globally. Becoming a real estate investor might be a wise choice in today’s world when compared to other investment opportunities like stock, commodities, currencies, etc. Listed below, are the three markets where real estate is seeing an overwhelming rise in prices during 2016 and seems promising to rise constantly in and beyond 2017. The choice of selecting the best area and its strongest cities at the right time is the real tool of the real estate trade.
The fall of mortgage rates and the rise of steady job growths have resulted in the colossal real estate sales in California to the point of competition in high prices. California’s economic outlook in 2016 has shown the following statistics:
• The Existing Home Sales went up by 3% from 5,250,000 units in 2015 to 5,409,000 units.
• The Median Price of Existing Home Sales went up by 4.5% from $222,400 in 2015 to $232,500.
• The Median Price of Single Family Home (SFH) Resales went up by 5% from $474,400 in 2015 to $498,100.
• The Housing Affordability has increased from 31% to 33%.
The rise in employment rate combined with the shortage of supply of houses has made Washington a hotspot of real estate. Though the government employment has been flat at 600,000 the business jobs have been increasing by 1% annually. Washington’s statistics in 2016 conclude that:
• The selling price of SFH has risen by 19.8% compared to the previous year.
• Home Values now average at $287,700 which is 9.3% more than the previous year.
• By 2017, an overall rise of 15% can be expected for three years in the prices of homes.
Owing to rise in employment with a job growth of 1.68% expected to touch the 37.20% mark in a decade, Arizona has returned to its high prices last observed in 2008 and the good news is—it will cross it this year. Real estate is growing in spite of decreasing inventories.
Real Estate Statistics of Arizona in 2016 shows that:
• Home appreciation has risen to 14.10% which is 10% higher when compared with the national rate.
• The total value of properties under contract has risen by 50% in a year.
• Decreasing inventories haven’t stopped the excessive inflow of buyers. In January of 2016, 10,500 home contracts were signed after which, the number increased by an average of 13,900 home contracts being signed every month till June 2016.
• The Median Home Value is $270,000 which is 7.9% more than its 2015 value. Speculators are of the view that this percentage will increase to 11.3% by next year.
There’s no obligation which demands that you need to have a million dollars to invest in real estate. You can get assistance from banks or hard money lenders like CALCAP Lending, LLC in buying properties. One of the major causes of the increase in real estate is due to the falling interest rates and increase in employment. The sooner you take advantage the better.