Real estate continually proves itself to be an ever-changing market.
The fluctuating marketplace has can be seen on a local and national level. For anyone who has a stake in the field, it’s crucial to stay up to date on all the updates that can have a strong effect on your next possible investment. Over the past decade, statistics shown homeownership throughout the country to be somewhat stagnant. It wasn’t until last year which showed a spike of homeownership figures increasing to over 67% which is a 3% jump from 2019. With property listings being in increased demand, this also allows the elevation of home prices.
The median prices for homes differ across the country.
Though, the increase of closed deals has been blanketed across the nation. It’s predicted that mortgages rates will continue at 3% in 2021. One study reporting 40% of over investors stating that housing costs will increase throughout 2021. A national ongoing housing trend of wage appreciation severely under pacing price appreciation in over 90% of markets.
In the state of Illinois, a secured financial savings of around ~$50-59k is what is statistically shown to be the average amount a potential home buyer will need before entering in the real estate market as an investor.
A smart step to remember before taking the step into real estate investment is limiting the house payment to no greater than around 25% of your monthly net-earnings. The house payments must include everything from property taxes, interest, etc. After taking all these factors into consideration, one must formulate the best and most cost-efficient plan for them to take to the marketplace to ensure the best decisions are made to support a beneficial investment they can be proud of.