Experts see the 2014 western real estate market as a “seller’s market.” The right amount of house price bubbles clearly help improve the prices of many homes in the US and Europe. However, there are still challenges for both sides of the real estate market. Here are a few things you need to know about tax, spending and the housing bubble.
Tax bills will always play a great role in selling homes, but in some US states, property tax cuts are being proposed. The cuts would be depending on the income of the homeowners. So, for homebuyers, this can mean they will be paying less for houses, and once they live in the houses of these states, they will have reduced taxes depending on their income as well.
However, mortgage rates have increased by 5%, but experts said that home buyers have nothing to fear because 5% is still a tolerable mortgage rate. Experts said that the consequential effect of higher rates is easier access. Home buyers could get mortgages with banks becoming more lenient with requirements.
3. Housing Bubble
Properties will continue to rise in value, but with mortgage rates rising, it would mean a slower rate of growth. However, with smaller-value houses getting better deals, home sellers should take their time in choosing a buyer. Avoid getting a very generous, “too good to be true” offer and instead focus on the actual value of your home based on the housing bubble.