Trends in real estate come and go just like trends in clothing and interior design. Not so long ago we were, as a country, swept up in a trend of “no doc, no money down” loans that cost most of us mightily as we trudged through the recession. This trend was reasonably short lived, thankfully, but certainly caused extensive damage in its wake. Trends in real estate are looking up, at least in my opinion:
The trend in financing is that buyers must actually have a downpayment, a job and good credit to buy a home. Seem onerous? It’s the way it was until just a few years ago and provides a far stronger base for the housing segment of our economy. We should all be thankful for the tighter lending practices in place that will hopefully help prevent another housing bust.
The trend in borrowing generally is to no longer treat your home as an ATM. Yes, your home is an investment, and someday may provide a nest egg for retirement, but we have all learned the valuable lesson that we cannot expect our home to finance our cars, trips and children’s education – unless we want to be homeless, that is. Good old savings toward goals is back in fashion! The financial planners I know are celebrating this trend!
Lenders are also moving more quickly on short sales, and this is also a trend we should be grateful for. When a homeowner becomes upside down on a home, its important to move through the sale quickly so that everyone involved can get on with their lives.
The trend toward green building is also an exciting change in our market. Many builders are choosing more sustainable and/or healthier building products, which is good for our environment and for our health.
Finally, we have all enjoyed and benefitted from the trend toward low interest rates, which remain at historic lows. It remains a good time to buy your next home, where you and your family can enjoy Thanksgivings for years to come!