Millennials are not driving the market as much as homeowners
Although the Millennial generation has formed a hot topic in the media, the movers and shakers of real estate are keen to find out where the generation is heading to. The generation has indulged in various economic activities, in the real estate market, in certain cities like Minneapolis, Portland, Seattle and Austin. The younger generations are increasingly getting attracted to the property market. However, this group is not the one which is purchasing properties much. Property transactions are made mainly by people in their middle age. In the current year, the major property purchases, sales and investments are likely to be made by middle aged people, and not by college grads.
The recovery would be leaded by second-tier cities
Builders, developers and investors are gradually losing interest over the cities called as “24-hour gateway cities”. These cities are New York and San Francisco. Cities like Portland and Dallas are more appealing to these people now as these cities have more scope for housing deals.
In 2011, as per the ULI report, Washington D.C. and New York City were the only towns having good prospects and opportunities for property developers and investors. However, now numerous other cities have great property prospects, such as Seattle, San Jose, San Francisco, Portland, Orange County, Miami, Houston, Dallas, Boston and Austin. Washington D.C. is no longer a city having good real estate prospects. If you are planning to buy property this year, choose a city booming with property prospects. Real estate companies like sutton real estate montreal can help you come up with the right decision.
Real estate recovery depends on job growth
The slow rates of employment growth and the slow pace in wage and income growth are factors hindering real estate recovery. This situation is unlikely to change soon. Housing recovery has been quite strong in a number of cities in Texas and Bay Area owing to their economic strength. Hence, regions having low unemployment would see quicker recovery as compared to places with high unemployment.
The philosophy of “smile investing” has made a comeback
Property developers are once again interested in “smile investment” philosophy. As per this philosophy, real estate investors and developers focus on cities present in the Northeast and move towards the south to the cities present in the Sun Belt i.e., Arizona, Texas and Florida. Then they move to the Northwest where the cities are Washington State, Oregon and Northern California. Hence, these areas are likely to see more activities than the areas in the Midwest.
These are the prominent real estate trends 2014 is likely to see. Real estate developers and investors can make proper decisions keeping in mind these trends.
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