Since 2007, the global housing markets have been all over the place. While there are been some significant drops in average prices, the industry was once again booming in 2014. There are many reasons for that, some of which we’re going to mention in a moment. We hope learning a little more about the state of the markets will help you to make the right decision when it comes to purchasing a new property. Is now the best time to buy? Should you wait until things settle down? Will you get a good deal for your money? Let’s find out.
Consumer confidence on the rise
During the global financial downturn, most people were terribly worried about the stability of their jobs. For that reason, they prefer to keep their savings in the bank, rather than making substantial investments. Now things are looking a little better, consumers feel more confident using their funds. That has helped to contribute to making the housing market boom this year.
Buying a second home
Thanks to a drop in prices that occurred at the start of 2014, a large number of people decided it was the right time to purchase a second home. While the average worker might not have earned enough money to afford that in the past, they identified an opportunity and took the bull by the horns. Holiday home purchases have also risen over the last few months. That has further helped to create a healthy housing market once more.
New landlord businesses
There have been a phenomenal amount of new businesses started in 2014. Some of the people looking for lucrative opportunities realized it was possible to make a huge profit from becoming a landlord. That means lots of homes have been purchased with the express intention of adding them to the rental market.
Buying and selling for profit
Alongside landlord businesses, a lot of people have also realized there is money in buying and selling properties. Those who do that tend to purchase homes cheap at auction, make improvements and then sell them on. That is done by individuals and development companies alike.
HOA management companies
There has been a huge increase in the amount of HOA management companies over the last twelve months. Any area controlled by one of these firms tends to see house prices rocket. You can either get in touch with a reputable specialist or search online for more information about how these companies work.
At the end of the day, the housing market will always see significant peaks and troughs over the course of each decade. Those who were around in the early 1980s will remember how low prices became for a short period. In answer to the questions posed at the start of this article, yes, now is a good time to buy a new property. When all’s said and done, it’s tricky to know how the future is going to pan out. However, experts predict that prices will continue to rise for at least the next twelve months.