Almost half of 2019 has passed, but still, the threats in the real estate are very present that every broker, seller, and homebuyer must know and be keen to. Rising interest rates are the top two current issues to watch in real estate.
Here are lists of issue that you must watch.
1. Interest rates and the economy
As interest rates rise, commercial and residential real estate markets are seeing several changes, such as decreasing demand for commercial property and higher home mortgage rates. Rates increases make a home less affordable and are also limiting the value appreciation for commercial real estate.
2. Politics and political uncertainty
Tax reform and policies aimed at balancing trade with other countries and it will have an impact on jobs, incomes, and both commercial and residential.
3. Housing affordability
The lack of affordable homes across income brackets, excluding the wealthiest, is being fueled by low wages, rising mortgages rates and the underproduction of the housing.
4. Generational change or demographics
Four distinct generations are exerting influence on commercial and residential real estate, such as in office design, student and elder housing, amenities and location preferences.
5. Natural disasters and climate change
The ongoing threat of natural disasters and climate change can result in expensive property and environmental damage; this includes everything from storms, wildfire, and floods up until earthquakes, volcanic activity, and rising sea levels.
Above are some of the threats that you have to look and put attention with, what you have to do is stick with your investment metrics, determine your return requirements, benchmark your investment decisions and trust your instincts.