Are you thinking about the idea of investing in real estate? Or are you an experienced real estate investor thinking about acquiring more property? Well, you need to stay on top of what is happening in the real estate market to make informed decisions. With real estate investing gaining popularity in Canada, a lot of market changes also come in to keep everything in control. Keep in mind that the primary goal of any real estate investor is to make a profit. Real estate investment is an ever-changing game, and you need to stay ahead always, to make a consistent profit. Here are the top 3 real estate market trends that every investor should know.
Increase in New Homes
The construction of new homes for sale is gradually increasing every year. This trend is set to continue as home builders, and the real estate developers are backed by looser mortgage requirements, increased demand from potential home buyers and higher wages. With a wide range of property market trends shaping up the real estate market, investors enjoy excellent opportunities for continued investments especially with the sudden increase in demand for new homes. The increase in demand is brought about due to a rise in the number of people migrating into the city to find new and improved sources of income. The increased demand for new homes is already opening doors for so many real estate investment opportunities.
The Mortgage Rates are on the Rise
Mortgage rates usually fluctuate up and down depending on the prevailing economic conditions. The mortgage rate is generally set by the Central Bank of Canada and with the recent historic lows; investors can only expect the rates to rise. Therefore, if you are planning to start investing in real estate, make sure that you work with an experienced real estate broker, who will offer you proper guidance through the market and help you make a profit out of your investment. As the mortgage rates go up, the current property owners who carry lower mortgage rates may be discouraged to sell since the mortgage rate growth will price them out of purchasing back their own homes, let alone securing a mortgage for a larger home.
Millenials Have Start Buying their Own Homes
The real estate investors have waited for a long time for the arrival of millennials in the market as buyers. Finally, we are at that point, and some of them are already buying homes in large numbers. Statistics indicate that at least 60% of the people who purchased homes last year were first-time buyers under the age of 40. This is one of the most critical market trends that real estate investors need to keep a close eye on. This demographic group is poised to push home sales up in the next few years, and only those investors who understand what the millennials need will benefit.