GENERAL REAL ESTATE MARKET FACTS
INTRODUCTION
The real estate industry has been experiencing rapid expansion in recent times, due to the news and trends in the local and international market. It is expedient for investors as well as homebuyers and sellers to understand market facts and trends.
This will assist in better market analysis and help them in making the right decisions. Below are listed some of the general real estate market facts based on statistics extracted from some platforms.
REAL ESTATE INVESTING FACTS
· According to RealWealth, the real estate market has experienced a massive influx of millennials since 2007. 50% of millennials, who were originally interested in the stock exchange market, have now diverted their interest into the real estate industry.
· Based on statistics done by Zillow, the value of homes in the United States has experienced a considerable increase of approximately 7.2% over the last two years.
· Night rental rates in the US, according to Vroomres, ranges between $186 to $978 per night; depending on the location. The average price in most locations is $200.
· According to the United States Census Bureau, about 74.4% of rental properties in the US belong to real estate investors.
· An estimate of 20 million new homes will be formed by millennials by 2025, according to Realty Biz.
BUYING AND SELLING FACTS
· According to Zillow, the highest amount claimed to be lost by most homeowners in recent times has been linked to “unexpected repairs and maintenance.”
· Market transactions between buyers and sellers usually last for 40 days before offers become accepted; a report from Redfin.
· The difficulty of young and recent graduates to buy homes keep increasing because of the amount of student loans they have to pay back after graduation.
· According to PWC, about 12 million homeowners in the United States end up paying up to half of their annual income on rent.
· The largest percentage of mortgage borrowers in 2019, according to realtor.com, are millennials; accounting for about 45% of the total population.
MARKET FACTS
· According to Apartment List, most families prefer to live in the outskirt of Indianapolis because most of the structures in this area are suitable for families.
· According to Redfin, reduced competitive bids for houses are in Houston and Dallas, hence making it more suitable for buyers.
· A study done by NAR reflects that most Millenials are choosing to relocate areas around Madison WI and Grand Rapids MI.
· Inventory listings and selling of homes are experiencing a monthly increase in the sunny South, and this is expected to continue for the next couple of years. These estimations are according to a study done by Realtor.com.
· The United States’ most affordable rental market, according to Apartment List, is presently located in Troy MI.
CONCLUSION
The facts above are only a few of the several facts available in the real estate market. Every month, the market responds to the news and the trends; hence, it is essential for intending investors or real estate business enthusiasts always to keep their ears in the game as all of these facts can go a long way in affecting the market.
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