Determining broad trends in the real estate market is hard work. They depend on countless factors, and many of them are specific to a country and local area.
However, despite the specificity of real estate markets, it’s possible to identify some overall direction the global market. In general, the world is in a post-recession era, and many key financial indicators are pointing in a much different direction than they were 10 years ago.
So what does this mean for homeowners? Let’s take a look at a couple of things you should keep in mind if you own property or are planning on doing so in the near future.
Technology is Making Insurance More Expensive
Our homes are getting “smarter.” Technology is integrated into so many aspects of our houses these days, starting with construction and extending all the way to when we finally move in. While convenient, these innovations come with a cost. Specifically, insurance companies are coming up with new packages to cover homes that use this technology, and they tend to be more expensive.
However, there’s another side to the coin. Because homes are higher-tech, there are more ways for burglars to get to you. Home security systems can be hacked, and this is something insurance companies will need to adapt to moving forward.
Not Being Tech-Savvy Can Drive Up Maintenance Costs
Technology has certainly made our homes and our lives a lot better. But there is one major problem we often overlook: who’s going to be there to fix things when something breaks? Fixing a washing machine is no longer a matter of changing out some parts. Now, you need someone to come in and understand how the appliance’s internal computer reacts with its hardware. Very few of us know how to do this on our own, and those who do charge quite a bit for their services. So as you bring more and more technology into your home, remember that all that convenience may come with a big price down the road.
Home Equity is Hitting an All-Time High
After the recession, it was quite difficult for many homeowners to think about upgrading their home or buying a new house. However, growth rates for property values are declining as compared to the last half of 2017, and this has made buying a new home more affordable for a more diverse range of budgets.
On top of this, rising property prices made everyone want to sell. But there was not enough demand in the market to respond to this, so many homeowners opted instead to upgrade their own homes, bringing equity to record levels. But this trend will likely reverse in the near future as consumer desires change. Yet it should remain the same throughout 2018.