American Eagle Insurance Blog
As the economy recovers from the slump of 2020, home values rose at broad rates in 2021. The leading causes of such a trend have been low mortgage rates and a scarcity of available houses for sale.
As you see, understanding these home trends will keep you updated and smart in your home-buying decisions. Here are the things you need to know when understanding the home trends in 2022 and future years.
Investing in Real Estate
Buying a house has traditionally been seen as a secure investment because property values tend to increase over time. Still, one thing to keep in mind when considering a house as an investment is that it will not pay off until you sell it.
In practice, even if the value of your main home increases, it is likely that your real estate taxes have increased as well. Until you sell the property, all of your profits remain on paper.
Home Trends Continue in 2022
Of course, it's essential to remember that variables other than supply and demand may impact real estate values. For example, the National Association of Home Builders stated that the average home size in America was 983 square feet in 1950 and peaked at 2,740 square feet in 2015.
This pattern lasted until the first half of the 2000s, after which it started to wane somewhat. Still, with houses becoming larger and inflation increasing the cost of construction materials, it is only natural for housing prices to rise. Other trends, such as consumer preferences for more costly flooring, appliances, fixtures, and the like, may also push up costs.
How To Keep Up With The Trend
Think about why you want to purchase a house. You generally don't need to think about your home in terms of profits and losses if you're going to live in it. If you want to earn money, you must enter the transaction with an exit plan. It also implies that you should have a selling price in mind while keeping the buying price of the property in mind.
When the market hits your price point, you sell the property the same way you would a stock that has grown in value.
Home values tend to increase over time, but recessions and other natural catastrophes may cause prices to fall. It is not always a guaranteed bet in real estate, but knowing the trends increases the likelihood of profit.
At American Eagle Insurance, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (225) 667-7377 or Click Here to request a free quote.