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According to the IMF Global Housing Watch, the global housing market is picking up after a record dismal performance after the 2012 housing bubble burst.
For home buyers, this means good news. A recovering housing bubble translates to a greater supply of homes and lower mortgage rates. But these aren’t the only benefits of the improved performance of the housing market.
Here are top five trends of 2018 that will shape the future of the global housing market:
- Steady housing prices
The period of the housing bubble burst was a time of price volatility. Thankfully, those days of uncertainty are over. This means potential home buyers will no longer be surprised by the sudden rise and fall in property value. A steady housing price also means buyers can now plan their purchase easily.
- Greater disparity in house price to income
Although housing prices are steadying, a majority of interested home buyers may still be unable to afford housing prices. Fluctuating incomes and rising cost of living may still prevent interested buyers purchasing their dream home.However, experts believe that with the right guidance and investment strategies, potential buyers may be able to close this disparity between housing prices and income. At Total Mortgages, we can help you find the finance you need, to purchase your dream home. We will analyze your current financial situation and assist you in getting the right housing loan.
- Increase in competition amongst buyers
Despite the fluctuating home prices, the upcoming year will see interested home buyers battle it out against multiple competitors. Sellers will continue to possess a higher bargaining power and there will be intense competition amongst buyers to purchase prime property.Additionally, homes on sale are set to be on the market for less than two months, with buyers closing the deal quickly.
- Millennials will shape the future of housing
With their limited income and big dreams, millennials may soon move from coastal homes to in-land homes.In-land homes will allow home buyers to invest less in starter homes, all without creating a shoddy credit history. This trend will definitely impact home sellers drastically.
- Politics will impact infrastructure
Prime minister, Jacinda Ardern’s plans to ban foreigners from purchasing property in the country may finally allow locals to invest in their dream houses. This may open up the housing market, allowing buyers to have a pick of the very best properties.
If you’d like to purchase your dream home, speak to the team at Total Mortgages. We will help you get the loan that’s right for you.