If you are considering purchasing a new home to live in, a home as an investment, or even if you are thinking about selling your home, then you’ll want to know the most important details of the home market for the month of April.
Are you thinking about investing in a family home or a rental property in 2018? Property is one of the most popular investments for individuals and families, and it’s also among the most valuable.
Home Market Sales are on the Rise
The figures for March are in, and it should be noted that sales grew 1.1% when compared to the previous month. While this might not seem like a massive figure, there are actually some very promising statistics to learn from two key regions.
The Midwest and Northeast saw the most growth with 5.7% and 6.3% respectively. The South and West markets didn’t fare as well, with the West dropping more than 3%, and the South by 0.4%. This indicates where the current hotspot markets are, and could guide your investment decisions if you are looking to purchase property in the next two months.
One thing that is concerning for analysts is the fact that inventory is currently tight. There are fewer homes available for sale, and this can potentially detriment the market in two ways. In one scenario, low inventory could lead to price hikes (making purchases less affordable but sales more profitable). In another scenario, the low inventory could reduce the rate of sales, as potential buyers may be unable to find their ideal properties.
Some analysts are suggesting that the market is starting to plateau. However, this is debatable considering the strong month-on-month growth that is seen in the Midwest and Northeast.
Average sale price in March of this year was $250,400, which is more than a 5% increase on the March median sale price in 2017. Low inventory is currently preventing prices from growing at a faster rate, but 5% is still a decent figure and will be promising for some investors who plan to sell in the near future.
Most importantly, changes to tax regulations have not had a negative impact on sale price when considering the United States as a whole.
Home Market, Is it Time to Buy?
Even if you plan to live in the home you buy, it is still considered an investment. Whether you are searching for your first home or if you are considering buying a house to rent, 2018 could be the ideal time to make your move. Although inventory is reduced, median pricing remains relatively affordable. With interest rates expected to go up in the coming years, buying a house today could allow you to take advantage of reduced mortgage rates while they last.
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