Top 6 Real Estate Trends for 2015
If the real estate industry of the US was a basketball game, we were in the dying seconds of the fourth quarter losing our lead to the economic crisis, over a period of 6 to 7 years. However, the last quarter of 2013 and subsequently the overall performance of the housing marketing in 2014 have issued something of a fairy tale comeback. We closed 2014 on a positive note with many more homeowners returning to positive equity and a sustained real estate development pertaining throughout the year. Now that we are in 2015, here are the top 10 real estate trends to look out for!
1. Housing Market Targeting the Millennials
If 2014 was a year where millennials were first considered seriously, 2015 is going to be the year where we will see more development in the housing market that targets the younger generations. Since the popularity of Facebook and social media as a whole skyrocketed, real estate around the country has been benefiting with greater level of connectivity. As the average age of the US population decreases and social media continues to do wonders, we can expect even more activity in housing schemes that target this economically diverse base.
2. Social Media Will Be the Deciding Factor
More and more real estate firms, groups, investors, and developers are now on social media to leverage on what the platform has to offer in terms of consumer engagement. Social media channels like Facebook, Twitter, LinkedIn, and Instagram are the most effective in real estate. This also allows real estate firms to move from the traditional ‘middle man’ stigma to a more ‘friendly or business casual’ persona on the social networks.
3. Second Tier Cities Boosting Recovery
Since the housing market crash, the real estate industry across the US has suffered, despite the fact that gateway cities like San Francisco and New York City continued to sail the ship. Within the past year however, we are seeing increasing development in the housing markets of second tier cities like Sacramento, Dallas, and Portland among others. Second tier cities are leading the road to recovery and it wouldn’t be a bad idea to invest in one!
4. Job Growth Prospects
As construction and development activity continues to pick up pace around different parts of the country, this has led to the creation of many job opportunities and growth prospects. In fact, Houston, TX alone is anticipating an additional 90,000 new job openings over the course of the next year. This new development and robust economic activity is strengthening in the region despite the recent roiling of the oil markets.
5. Multifamily Investment Increase
Multifamily buildings picked pace during the recession which is largely due to the fact that they are less expensive for both purchasing and renting as compared to single family residential units. While 2014 was not on the receiving end of increasing multifamily accommodation development, it is anticipated that the development activity will likely pick from where it left off in 2013, as home buyers take advantage of the anticipated loosening home mortgage standards.
6. Sellers Are Winners
As the median per unit prices continue to climb throughout the nation, we can safely claim that today’s market is not for the buyers, but for the sellers. As the stock market has become more volatile, investors are seeking the safety of treasuries and real estate. This flight to safety has created robust competition for multifamily assets from both domestic and foreign investors – all to the benefit of sellers throughout the country.
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Top 6 Real Estate Trends for 2015