The economy is shifting gears with more Indians plunging into the real estate market, the scene is definitely hunky-dory. Let’s find out what is in store for 2018. The after-shadows of demonetization and GST have affected the real estate market a great deal but nevertheless the buying potential has come down. The first time home buyers were able to make an entry into the affordable real estate scene. The millennial will definitely take a centre stage emerging as the new buyers in the market. The real estate trends are definitely encouraging and here are some tips to make an entry.
Rising interest rates: The buyers find the ever rising interest rates a big problem when it comes to buying a house. The rates go higher and the government pitches in to reinvest in new principles to standardize the rates.
Banks turn aggressive: Home is an investment and there are more loan opportunities than ever this New Year. Banks are doing everything they can to pursue new buyers. With defaults banks have tightened their grip and have come up with diverse products to encourage new home buyers. The encouraging lending practice has opened new options for buyers and this trend is likely to growth this year.
More homes are selling: The second homes fall in the high tax category and do not remain a lucrative option. Though, this has not dampened the spirit of second home buyers and the market is seeing a positive trend.
Vacation home buyers: The tax reforms have given an opportunity for affluent buyers to invest in vacation homes. The vacation home buying is seeing an upward trend as the tax plans attracts more buyers into second homes. In this case the purchases are cash transactions and the interest rates and deductions do not seem to be important to buyers.
Emergence of agent free options: New technology is driving the online real estate market and this has given the home buyers and sellers immense opportunity to invest in real estate without burning their pocket on high agent fee. The agents are being bypassed as buyers and sellers use the online real estate portals for making a deal.
The millennial buyers: Millennials are first time buyers and they make a huge impact in the real estate scene. The millennials are experiencing a decent growth in their income as they move into their mid 20s and they are in a position to take large mortgages. The home prices continue to increase with shortage in the affordable property sale category. The millennials are moving into the suburban areas. They are looking at the secondary market for good quality of life.
Smart Homes: The new homes are now catering to the millennials with smart home technologies. The new age buyers are interested in smart home products and every one of the four millennials has installed a smart home product in their new homes. They are gadget driven and show a greater interest in using these products for safety and comfort.
It is difficult to exactly pinpoint the real estate market trends for 2018, nevertheless investors should take advantage of the predictions and act accordingly.