Houses Suddenly Major Bargains US Cities
We will dive into more detail about the factors contributing to the low pricing of houses below.
Pandemic
Following the pandemic outbreak, most homeowners withheld from selling their houses because the mortgage rates had reduced. This in return caused a surge where the demand for properties was greater than their availability in specific states. On the other hand, in other areas, the real estate market prices were reduced making it favorable for first-time home buyers and for people that wanted to rent.
29 cities that had not succumbed to the surge and prices decreased or stayed relatively the same due to the pandemic. . Buyers could take advantage of buying such assets in such locations and later on sell them at a profitable margin.
Availability Of Manufactured Homes
It is speculated that 17 million US citizens live in manufactured homes. They are cheap in pricing compared to normal homes and are also considered environmentally friendly in many aspects. Since the passing of the lockdown experienced all over the world most people cherish living life according to their terms as life tomorrow is never promised.
Manufactured homes make it possible for families to move from one state to another and experience different communities and cultures. This has relatively affected the pricing of houses in some states as more and more people want to try out new experiences with their loved ones travel and manufactured homes make that possible. Availability of land lease agreements to set up the homes is considerably cheaper because there are no property taxes incurred or mortgages to be paid off.
Migration From Cities to The Suburbs
Long gone are the days when one had to work within the confines of an office. 59% of US workers are working from home for the majority of the time or all the time.
With this flexibility, it means that families could move to the suburbs or rural areas where properties are much cheaper and bigger compared to the cramped spaces in city apartment living.
Job Losses
Job losses in any economy result in foreclosures of homes for people who default on their mortgage payments. A chunk of companies are continuously announcing job cuts an example is Netflix.
In the month of June 2022, Netflix company laid off 300 employees due to the loss of clients subscribing to their services. Taking into consideration that was the second round of layoff, it means the working-class group is having a difficult time making ends meet especially with their main source of income being cut off.
That is why in some US States the property prices are cheaper because the sellers want to sell their homes as fast as possible to get out of debt and start afresh by downsizing their lives which is more affordable to them.
Capitalism
The United States real estate market is considered a fair game for serial capitalists compared to other countries like London, Paris, and Hong Kong among many others.
The current surge in real estate prices may be considered exorbitant by the middle class but not by the wealthy who have experience in investing in other countries real estate sectors which are expensive even according to them.
Therefore, the current market prices are a bargain to them in which they can buy property in anticipation of further increases in the surge in which they could make considerable gains if they consider selling out.
Conclusion
Robert T. Kiyosaki in his book “Rich Dad Poor Dad” describes a house as a liability if an individual cannot offset the expenses that come with owning a house from incomes generated from other assets and not their job. Other than that, it remains to be a highly coveted asset.
Is it advisable to buy a house in the current market conditions even though there are speculations that the real estate bubble might pop at any time?
The answer to this question is subjective to each individual. There are pros and cons when it comes to making a decision to buy in the current market conditions.
Which states have cheaper real estate options that I can consider investing in?
An analysis was done of the largest housing markets in the United States and these cities offered the best bargains.
