Whether you own a home or you’re looking to invest in the real estate market, you’ve likely noticed the market is recovering. As different generations begin the process of homeownership, they are drastically shaping today’s housing landscape. As a result, there are a variety of real estate trends to look out for in 2014.
Millennials moving the market
The media may shed a negative light on the Millennial generation, but real estate professionals are incredibly interested in where these individuals are residing and relocating. For example, a number of cities have enjoyed increased economic activity in the real estate sector because of Millennial relocation. In particular, the cities of Austin, Seattle, Portland, and Minneapolis have caught this generation’s attention.
Second-tier cities leading the recovery
Investors, developers, and homebuilders have started to lose interest in gateway cities like San Francisco and New York City. Instead, they are beginning to focus home building interests in cities like Dallas and Portland, which offer more lucrative housing deals.
Recover hinging on job growth
Though the market is showing recovery, the slow pace of job growth and wage growth is still holding the market back. Cities in the Bay Area and in Texas have shown strong housing recoveries given the strength of their economy. This means that places with lower unemployment should see better recoveries in the next year. However, recovery is still quite distant for cities with deep economic issues.
“Smile investing” strategy returning
According to the “smile investing” strategy, developers will begin looking at cities in the Northeast before moving to southern cities along the Sun Belt. This means real estate developers will show interest in Florida, Texas, and Arizona before focusing interest in the Northwest and Northern California regions.
Castle & Cooke are Arizona home builders focused on building neighborhoods that enhance the lives of everyone in the Sierra Vista community. We have been residential and commercial builders in Sierra Vista and Cochise County for more than 20 years. If you would like to learn more about homes for sale in Sierra Vista, AZ, you can reach us at (520) 378-5110.