It’s no secret that the housing market is having a boom. For the first time in years, there is a negative housing rate, with more people looking for homes than there are properties available. Or are they just not looking in the right areas? According to recent study, there are over 19,000 homes for sale in the metro Detroit area alone. Better yet, many homes have been sitting and the prices have been slashed! Here are just some of the reasons you need to look into investing into real estate in the Detroit area.
1. Lock In Low Interest Rates
The year of 2018 marked a 7 year high for mortgage rates with some record low selling numbers. These rates are only expecting to increase to 5.1 percent in 2019 following by a large annual increase every year beyond that. Some analysits even say the rapid interest rate increase could actually negatively affect the housing market. Since this annual increase is almost a sure thing, it’s important to look into buying real estate now before these prices continue to rise.
2. Your Property Will Appreciate In Value
Properties generally appreciate in value every year anywhere between five to ten percent. You see, homes appreciate in value due to 5 key factors: Supply and demand, inflation, borrowing costs, population growth and market drivers. These factors working together often allow a buyer to buy a home at one cost, then greatly up sell it when they put it back on the market. Historically, home appreciation values have been around 3% to 5% annually, with those numbers believed to be increasing gradually each year.
3. The Property Is Safe From A Crash
It’s no secret there is a risk involved when investing with any type of stock market venture. Why not make a safer bet and invest in the housing market instead? When you choose to invest in a home, a large monetary value is place onto the home. While the housing market is often affected by stocks and trade, these severe stock spikes that can loose you cash often times don’t affect the value of your home. No matter the condition of the market, there is a very large value in owning a home and, as said in the reason above, often appreciates in value along with it.
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