The housing market, which was decimated by the economic collapse of 2008, is finally looking as though its coming back.
For the past 15 consecutive months there has been an increase in home prices and prices are expected to rise 8% this year alone, according to Zillow Real Estate market reports. So is this a good time to buy real estate?
According to Hitha Prabhakar, a retail analyst, it all depends on where you want to buy. The housing market is in direct correlation with employment, she says. So, people are buying homes in areas where jobs are available. “What you are going to see is a lot of these foreclosures happening because people want to go and buy and invest in property where the jobs are,” Prabhakar said. “If there are no jobs they are not going to go ahead and invest in those properties.”
Currently the market seems to be indicating that people are buying and building, Prabhakar points out. Some areas where the housing market is on the rebound are what Prabhakar calls “trophy cities” like New York City, Los Angeles, Miami, and D.C. Also, expect to see a rise of people buying and building in areas that are outside of urban city centers and high-end vacation homes.
Abby Borovitz