The real estate market is reviving in the country and every investor is rushing to acquire more properties to take advantage of the booming market. However, it is worth noting that not all parts of the country that real estate has recovered fully and investors should do extensive research about the market they are targeting to see how it is doing. It is worth noting that the real estate market is believed to be have reached its pre-bubble status in some cities while in other parts the market it is still struggling to catch up with the rest of the country. For those planning to invest in Roseville property, this is the right time to act because the California Association of Realtors has predicted that 2017 will be a good year for inland real estate markets. The number of homes to be sold in Roseville is expected to rise in 2017 and real estate properties will be relatively affordable throughout 2016-2017.
Factors Contributing to Property Market Stability
Some of the factors that are expected to contribute to the stability of Roseville property market include low-interest rates, high employment rates and availability of low-down-payment mortgages among other factors that make it easy for first-time homebuyers to afford properties in the area. The economy of the area has improved drastically in the last five years, more people are expected to buy homes in 2016-2017, and those unable to buy homes will be able to rent affordable housing. However, home prices are expected to rise moderately by the end of next year compared to what has been witnessed in the past years. If you are planning to invest in the area’s real estate, you can save good money if you buy your home now when mortgage rates are affordable and prices are relatively low.
Where to Invest
Generally, real estate is expected to be different in various cities and metro areas Statewide. In Roseville, metro areas are expected to have bigger gains than developing suburbs where prices are expected to remain low by the end of next year. However, it is worth noting that just like the rest of the areas in California, Roseville is expected to have reached the pre-recession prices by the end of 2017. Home prices are expected to increase at a decreasing pace, starting from 2018, and eventually stagnate. Real estate experts predict that 2017 could be the only year when home prices will move upward. Home prices are expected to have reached their peaks by the end of the year and probably start to decline after reaching the peak. Some realtors predict another bubble in the area if home prices continue to rise in the next five years without attaining normalcy.
Real estate investors in Roseville should also be warned about the threat of rising mortgage rates and home prices. Although mortgage rates have been increasing slightly since the beginning of 2016, the rates are still low and affordable compared to the historic standards of the area. However, mortgage rates are expected to increase drastically from 2017. Some of the key factors that are likely to make mortgage rates to shoot up include the increasing demand for mortgage loans, economic improvements witnessed in the area and changes in Federal Reserve policies among others. This is likely to scare homebuyers and demand for housing in the area will start to decline. Consequently, the number of homes sold in 2017 and coming years is likely to decline.
However, this should not be confused to mean that the real estate market in Roseville is on the decline or is about to decline. The truth of the matter is that demand for homes in the region is still high and the trend is expected to move upward steadily, especially in the metro areas before returning to normalcy. Those planning to acquire properties in the area should not be discouraged to do so because the future of the real estate market in the region is still bright. However, investors are encouraged to consider trying their luck in rental rental homes. This is because the population of Roseville is expected to continue rising and the demand for rentals and rental rates are not expected to go down anytime soon. Investors owning rental properties in the area will continue to enjoy good returns even after home prices have stagnate. On the other hand, flipping homes in Roseville could be a risky business if home price reaches the peak after 2017 and begin to decline.