Recent projections and data have predicted that over the next ten years, there is going to be 80% of all residential growth taking place within suburban communities. Now, this may seem like a random statistic but it is incredibly important to how the real estate market will be affected. Because of this strong growth, homes will be more expensive in residential suburban areas according to comparative market analysis.
Millennials and younger generations managed to comprise just about 34% of all home buyers in just a year of 2017 alone. According to real estate experts, this percentage is going to increase over the years at a high rate. This is mostly due to the fact that younger people are looking to find their homes.
According to the National Association of Realtors, 56% of buyers 36 years old and younger found their homes online. So this means that younger people are going to better understand comparative market analysis than other generations because they can use realtor CMA software and real estate software, unlike previous generations. While some people that CMA for realtors is too difficult to understand that is not at all true, here are the facts on comparative market analysis.
Comparative Market Analysis Can Be Inflated
In the year of 2008, the United States suffered an economic debocle in the form of the housing market crash. For many people, this costs them their homes, their money, and their positive feelings towards housing. Now, there are more people that want to rent apartments and such. However, some people are looking at the housing market in a positive manner after understanding comparative market analysis.
The housing market is slowly regaining its stability after the horrific 2008 crash. The median home price is rising nearly 17%. In the year of 2008, this median price was at $177,000 and just recently in 2017, this number was recorded at $207,000. So as this trend continues more and more people need to try and understand comparative market analysis to get on top of the housing market.
There is plenty of value to be found in understanding and being knowledgeable of random real estate functions like comparative market analysis. This can help people get the most out of investments like investing in housing share stocks. In the year od 2017, the value of the housing stock across the nation managed to increase by 6.5% which is equivalent to $2 trillion.
Comparative Market Analysis Is Not Always Accurate
The total value of all homes in the United States has been calculated to be nearly $31.8 trillion. So it is important for anyone in the world of real estate or home buying to have some understanding of comparative market analysis. This can help them recognize inflated prices when they see them!
To give an example of how comparative market analysis can sometimes inflate prices, it is important to understand this deals primarily with location. Just about 36% of the total United States housing stock can be found in the top ten most valuable downtown areas. So because people want to live in downtown areas, the price will be inflated as opposed to the opposite type of areas.
In Conclusion
In 2016, the homeownership rate in the United States was the lowest it has been in 50 years. While this may seem like a sad statistics that show that the housing market is falling apart, that is not necessarily true. While there are less people owning homes in the United States, it will not be this way for a while. As a matter of fact, a lot of the previously mentioned data points to a growin housing market.