The recession and housing collapse has caused a major mind shift in the population, one that real estate investing professionals can’t ignore. It has and will change individual’s attitude towards home ownership and is changing the types of properties which will sell quickly and which markets will remain the strongest.
What investors need to know…
While many may think that recent events would leave a bad taste in the mouth of home owners and have generations swearing by renting, quite the opposite appears to be true.
According to a new survey by Coldwell Banker:
- 94% of homeowners say they are still glad to own a home
- 91% of Americans still say owning a home is part of the American Dream
- 95% of parents and guardians said it was important ofr their children to own a home, with 74% saying it is ‘absolutely essential’
Buying a home is still a top priority for the vast majority of Americans and now one that isn’t so easily taken for granted. People now better understand the many additional benefits of home ownership besides buying as an investment. This gives a lot more leverage to real estate investing pros who know how to wield good copy and marketing. However, the types of properties which are going to be most in demand by Americans is changing.
Expect more interest in smaller urban units as well as a trend towards more families and young couples choosing rural areas with more acreage. Those flipping houses to investors will find turnkey rentals remain hot but international buyers will still be seduced by luxury condos and buy in resort areas on emotion.
With a wide disparity in direction of different markets and perhaps too much confidence in some areas, causing the nuveau riche to over pay for fancy new construction homes it is essential for investors to recognize fads as they fluctuate and where potential mini bubbles and pops could occur.
On the downside the new post-recession mentality is making it harder to motivate some homeowners to sell. They are afraid to move and aren’t interested in fast cash. If real estate investors are going to close the deal on this group they are going to have to get good at showing how much it makes sense with the math in black and white.