While nothing much seems to happen from day to day, a glance back at the last few years will show a dramatically different picture. We've had COVID-19, wars, economic crises, and global energy and supply chain issues.
It's left many real estate investors scratching their heads about how to invest their money. Is it possible to know what is around the corner in the property market? Here are some real estate trends to help answer that question.
The Inland Empire Housing Market: Rising Prices
If you have browsed real estate listings over the past twelve months, you've probably spotted this pattern with asking prices. They are rising.
Driving that trend is a consistently high demand for houses thanks to economic growth and the popularity of the Inland Empire as Californians move away from expensive coastal areas. However, Inland Empire has a relatively limited housing supply, making it hard for buyers to find the perfect home and pushing up asking prices.
Property Trends and a Desire for Suburban Living
Suburban properties have always been popular, but this is becoming a more pronounced trend in places like the Inland Empire. Buyers are attracted by the dream of space and quiet, clean neighborhoods.
Plus, a shift to remote working means people want houses with extra rooms or space for offices. HOAs are also popular options as more people seek out community living.
New Developments
Since the supply of housing in the Inland Empire is limited compared to the demand, it has begun to attract the attention of property developers.
Expect to see lots of new housing developments in this part of California. You will also see some newer commercial spaces to support this growth, helping to boost the local economy and provide better community amenities.
A Rise in Interest Rates
Inflation has been an issue, partly because of the costs of COVID-19 and a reaction to rising energy prices worldwide.
The Federal Reserve has reacted by raising interest rates, directly impacting the housing market. That means mortgages are more expensive, making it harder for buyers to find a property within their budget.
It means buyers have to compromise on the type of house they want.
A Higher Demand for Rental Properties
One of the knock-on effects of expensive mortgages is that they have priced out some lower-income demographics from the market, including younger buyers. Many are waiting to save money and rent in the meantime.
This has pushed up demand for rental properties. It's worth noting that this is an opportunity for you if you're an investor looking to move into the rental market.
Technical Innovations
Many parts of the real estate market rely on technology. High-tech features, such as virtual tours, are used in marketing, and landlords are increasingly reliant on technology like online portals.
Watching the Latest Real Estate Trends
The property market is notoriously volatile. So, it's vital to stay on top of the latest real estate trends before you make a major purchasing or selling decision. Use this guide as your starting point.
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