Three Things To Know About The Housing Market Before You Buy
October 4, 2018
Before you start your home search, there are a few things you should keep in mind about the housing market right now. If you’re looking to move to a large city, you may just assume you’ll have to pay for it. But, that’s not always the case. Even though nationally we are seeing housing costs rise around the country, there are some metros that are still affordable. A few trends to keep in mind as you start to think about where to move next.
Living Ain’t Easy
It’s the end of summertime and the living isn’t easy for some cities. Residents of cities like Las Vegas and Oakland have seen a spike in population and job growth, which has led to an increase in demand in housing. Between 2012-2017 San Jose’s population grew by 5.3 percent and employment grew by 14.5 percent – leading to 122.7 percent home appreciation value. It all comes down to supply and demand. More people are competing for the same housing supply – which can’t keep up with the demand.
Rural Area Population Has Declined
Between the years of 2012-2017, rural, non-metropolitan counties saw a population decline of one percent. This has resulted in the slowing of jobs rates and home values. Some experts guess that the downward trend has something to do with the slow recovery of the agricultural and automation sectors.
Permits Bring Affordability
Even though home prices are growing nationally, they aren’t growing in an out of control pace that has affected affordability in many large metros. The reason? Some cities are keeping up with the supply by issuing more housing permits. For instance, Raleigh issued a housing permit for every 1.78 new resident, compared to every 2.29 resident, like Las Vegas. Cities where new condos, apartments, and house developments are approved – will see less of a supply squeeze, which it makes housing more affordable in the long-run.
As always, once you find the perfect place to live – we hope Beltmann will be your next phone call. We would love to make your next move a reality. The first step is to let us give you a free, no obligation estimates so that we can help you budget for your upcoming move.