Future is unpredictable! Yes, it is. But an estimation or approximation on which the whole world is moving gives you a little idea about the future. It is well-said that-during the path of dreams, keep your focus on your path only. But along with this success mantra, today’s generation twist it a little- Keep your focus on your path only by keeping your future in your mind as well!
As for seen, the increase in associations and investments leads to some benefits in the Real Estate Market definitely. Joseph Grinkorn talks on new emerging trends in the market, real estate is going to perform at it’s best by 2020. Real estate gives a clear representation of people’s wealth, as in America nearly 65.2% (according to the survey of consumer finances by the Federal Reserve) of families own their own permanent residence. With the powerful pacing of the real estate market, it can never be ignored how it provides the space for living, working, shopping, etc along with the major implications for real estate investment and development.
For the real estate market’s future, there are many influencing factors:
Overall economy health is going to represent the real estate growth rate in the market. In simple words, the economy and real estate are proportional to each other. An increase in the economy leads to a benefit in the real estate. As getting permanent employment requires a permanent house for living nearby that particular area and this need is fulfilled by commercial projects in the real estate.
Investing in a property is not as much easy, as one cannot afford to buy a property without borrowing loans usually. Therefore, interest rates have a great impact on the real estate markets. For any kind of property investment, current home loans and property loans are the best approaches applicable in the market. With the low rates, demand for it increases definitely.
Through this factor, an idea regarding the thinking process of people when buying or investing any property is depicted. Along with the composition of a population such as race, age, gender, income, migration patterns, and population growth, it represents how the demographic scenario will going to highly affect the real estate market trends by 2020. As one of a significant factor, it affects how real estate is priced and what types of properties are in demand.
Current government incentives are helpful to get awareness related to changes in supply and demand and false trends. In 2009, the U.S. government introduced a first-time homebuyer’s tax credit to homeowners in an attempt to jump-start home sales in a sluggish economy (only those who purchased homes between 2008-2010 is eligible). According to the NationalAssociation of Retailers (NAR), tax incentive encourages to 900,000 homebuyers to buy homes. By fixing the real estate prices and norms for selling off the property is one of the best work by the Government.
Nowadays, buyers have access to a multitude of upgrading tools and services related to home searches as the average person these days have enough knowledge regarding this. With the readily changing technology, buyer’s becoming smarter day by day due to which companies have to be more active and assured for convincing the buyer’s these days. Usually, the first ever preference recorded is that around 42%of people prefer online to look for property selling and buying processes.
Predictions Related to Real Estate Market by 2020:
- As real estate universe will expanding, it leads to a huge expansion in opportunity along with emerging economies.
- A wider range of risk and return opportunities by fast-growing cities.
- The key drivers for value are technology innovation and sustainability by 2020.
- Collaboration with governments will be a priority.
- Prime assets competition will further intensify.
- Introduces to the range of risks though.
Apart from introducing attractive housing schemes for rural areas, there is still the absence of favorable government policies, the bank’s interest rate, and unfavorable economic conditions. Besides all this, there are no signs of pacing down, because a rapid change in the real estate world is altering the homebuying landscape and today as buyers are searching, negotiating, buying and financing their homes clearly shows how informative the buyers are regarding this.
One thing based on the present scenario, concludes that Real Estate Market growth leads to the growth of other sectors also. If considering an improvement in allied industries such as cement, construction, etc will going to increase the interest in the property by2020. And this growth will be maintained by increasing good job opportunities in the villages.
By focusing on all the above-mentioned factors and predictions, it becomes simple to attract more and more investors to invest in the real estate and in return leads to an increase in the real estate demand by 2020.