If you are someone that is heavily involved in the world of real estate, then you will know that the last year or so has been a little touch and go. Due to the unfortunate world events that have unfolded over the last year, almost every aspect of our daily lives has been affected.
The way in which America thrives in terms of Economy has been one of the biggest sectors to take a hit. America depends on a lot of financial revenues in order to prevent recessions and economic crashes.
One of the biggest sources of revenue throughout the country is real estate. In the last year, many people were unable to work as much as they would like, which means that they were being conservative with the ways in which they spend their money. Purchasing a house is a luxury that very few can afford, even when they are working as much as they possibly can. The majority of people have instead chosen to invest their money in necessities and other bills that need to be paid.
The mass majority of people tend not to buy their homes outright and instead depend on mortgages in order to be able to do so. However, the banks have been very strict in terms of who they allow getting a mortgage because there is the fear that due to the unseen financial circumstances of last year, people may not have had the ability to pay the required money.
However, as the world is starting to return to normality, the real estate industry is on its way back up. Everyone is getting back to work, which means that financially we are all starting to feel a lot more secure. Due to this security, more and more people are buying and selling houses. Many predict that due to the brand new financial security that people are experiencing, we are set to see a 2022 boom in the American real estate industry, but is this really the case?
The 5 Year Forecast
The easiest way for us to make predictions of whether or not next year will be the ‘boom’ year for real estate is by forming a five-year forecast. A five-year forecast allows you to be able to not only estimate what the real estate industry will be like in the next five years, but it will allow you to have a rundown of what the progression will look like.
You can’t just say that in five years’ time, there will be ‘X” amount of houses sold and bought in America as it is simply impossible to be able to make these predictions. Instead, we look at past sales of homes in America and look at the rate of increase. If the rate of increase is steady, as it currently is, we can then use this to look at what we can expect in terms of sales in the next few years.
After doing this forecast, we could discover that next year will not be the boom and it could instead happen in 2023/2024. However, if we look at the five-year forecast and take into consideration the decline of sales in the last year, by definition next year is likely to be the ‘boom’.
Will There be Another Bust
Something that a lot of people are afraid of is the prospect of a bust rather than a boom. Yes, real estate can be unpredictable at times and nobody could have expected it to take the dive it did in the last year or so. However, the likelihood of there being another real estate bust is extremely unlikely. For the current state of the real estate economy, the only way is up really. America is starting to build itself back up and it doesn’t seem as though another bust is likely.
If you are someone that is concerned about a potential bust in the future, then we would recommend selling or buying now while prices are so low. However, if you are a house seller it would definitely be in your best interest to wait for a little longer, as though the economy is starting to level out, you will be able to sell your home for a much larger price next year.
Current Home Values
As the real estate industry is starting to build itself back up, you may be wondering what the current housing prices are. It is important to remember that housing prices will be different depending on where you are in the country, which is how it has always been. Right now the highest price points in terms of home value currently reside in the mid-Atlantic area. This is because a lot of people are looking to escape their busy city lives and head to somewhere a bit more homely.
In particular, homes in Maryland are selling for quite high prices. So, if you are someone that lives in Maryland and you are thinking of selling your home, then you can expect to make quite the pretty penny. If you are looking to sell, we recommend that you go through a complete guide to selling a house by owner in Maryland so that you can fight against the current congestion in the area. However, if you want to make a little more, we recommend that you hold off on selling until next year.