This past year was truly the year of the seller when it comes to the housing market. Prices were up, and buyers were competing for their perfect dream home like a scene out of The Amazing Race. This year, however, looks to be a different story.
Mortgage Rates on the Rise
With mortgage rates at historic lows at the beginning of last year, homebuyers were able to relax a bit. Not that buying a home is a relaxing venture, but lower rates meant more affordable payments for many first-time homeowners. Unfortunately, that bliss did not last.
Rates rose throughout the year, and in late December, the Federal Reserve hiked benchmark federal funds rate by 25 points, saying they planned to raise the rate again in 2019. Realtor.com estimates the rate for a 30-year mortgage will hit 5.5% by the end of the year. Zillow.com estimates it could soar as high as 5.8%. However, with the U.S. Federal government shutdown factoring into predictions now, investors are moving towards bonds, which is pushing mortgage rates down. Where the trend goes from here is questionable, but once the government resumes business as usual, it’s likely to rise again.
While mortgage rates are on the rise, housing inventory is falling. With a decrease in the available homes for purchase, many home-buyers can expect to be outbid and left standing on the sidewalk staring forlornly as someone else moves into their dream home. To make matters worse, home prices are still climbing.
Cheryl Young, a senior economist with Trulia.com, stated, “We don’t see a big infusion of supply coming on anytime soon, and because those prices are still increasing, and they’re outpacing wage growth, affordability is actually getting worse.”
The housing market is stronger in some states than others, and those statistics change every year. States with a demand for mortgages, where the market is performing well include:
Millennials are shifting into family mode, so the suburbs of these states (and others) may begin to see a rise in first-time and older Millennial buyers. Experts predict suburbs will begin to look like miniature cities as the influx of new families spreads across the country. However this all plays out, 2019 is looking to be a tumultuous year in the U.S. housing market.
The real estate market in most parts of the country has remained sluggish over the past few years owing to demonetization and other reforms by the Government. But real estate in Hyderabad has remained a hot spot for property investors at all times, irrespective of the downtrends in the rest of the country. The positive outlook of the Government of Telangana in terms of elevated IT corridors, aggressive infrastructure development, strategic road networks, metro rail, etc., has helped the city to keep up with its sustained growth rate.
The Pearl City of India ranks high at the livability chart with its world-class amenities and ample employment opportunities. Hyderabad is also one of the fastest IT and the ITES hubs in the country that houses the top fortune 500 companies. This has, in turn, fueled the real estate growth in and around the city. The city is one of the hottest spots for real estate investment in the country and faces high demands among home buyers and investors to buy a property in Hyderabad.
Current property trends in Hyderabad:
Many people look for a house for sale in Secunderabad,Narsingi, Kukatpally, Kondapur and other pockets that attract the maximum buyer inquiries during the recent few years. These suburbs in Hyderabad are the hot housing spots with more than 56.5% inquiries made regarding the availability of houses. It has also been found that the 3BHK apartments are in high demand in Hyderabad compared with 2 BHK and 4BHK categories. Also, there is an excellent demand for upper mid-level projects in the city. Properties that are in the price range of Rs. 71-80 lakhs are browsed up to 20 times higher than projects that are in the price value of 30-40 lakhs.
The best destinations for property investments in Hyderabad:
Buying an investment property is one of our country’s most favorite ways to invest. An investment property not only increased one’s wealth but also helps in securing one’s financial future. Some of the top destinations to look for properties in Hyderabad are as follows,
Secunderabad is one of the hottest destinations in Hyderabad that is filled with luxurious villas, houses, and apartments. It is the prime location in the city and houses a major railwayjunction and bus stand. Thousands of commuters travel across Secunderabad to reach their place of work and study. Buying a property here is not easy and could be highly expensive. People look for a house for sale in Secunderabad as their long term investment or to enjoy a high return on investment through rents. Investors show tremendous interest in booking commercial properties in Secunderabad more than residential plots.
2. Rajendra Nagar:
This is at a prime locality in Hyderabad and features a significant uptrend in the demand for residential spaces in the past few years. This place has many advantages such as, advancements in transportation, connectivity, superior infrastructure and security facilities which attract investors to invest in its diverse properties. It is very close to the Secunderabad railway station and the Rajiv Gandhi International Airport. Rajendra Nagar is connected with some of the business districts in Hyderabad such as Banjara Hills, Begumpet, Hitech city, etc
Investors looking for villas in Hyderabad choose Nacharam as their destination. This is considered a high investment zone in the city and is known for its excellent infrastructure, reputed schools and hospitals and other amenities such as shopping malls, hotels, banks, etc. This place is urbanizing at a rapid pace and properties here are priced lower as it is about 60 km from Hyderabad. But this is the hot investment destination for real estate investors owing to a range of low- priced investment options
This place is also referred to as the real estate gem of Hyderabad. Though it is on the outskirts of the city, it is transforming from a suburban district to a thriving destination at a fast rate. It is the new educational, industrial and residential center in the city and is known pretty well among the NRI investors of the country. Though this place lies in the affordable investment segment at present, it has excellent potential for world-class housing. Its social and connectivity infrastructure is also developing at a fast rate.
This place, also known as the green belt of the city is the best destination to book villas in Hyderabad. IT is just 11 km from the HITEC city and is the land for world-class educational institutions, health care centers, recreational zones, and resorts. As this place is close to Cyderabad and is easily accessible to other districts of Hyderabad, many NRIs consider this is a risk-free venue for residential investments.
Some investment tips for prospective investors:
Investing in residential or commercial property has grown to be India’s preferred and favorite ways to invest. A property should always focus on increasing one’s wealth and in securing one’s financial future. But this is possible only when one manages their investment effectively by the following ways and channelize the same in the right way to achieve their financial goals.
It is important to choose the right property at the right price
It is important to keep a watch on one’s cash flow
It is mandatory to choose a property from an efficient property manager
Investors should understand the market thoroughly and buy houses, apartments or villas in Hyderabadfrom trusted parties
It is good to check the age and the condition of the property thoroughly before making an investment.
Before investing in a property it is mandatory to foresee its long term view and manage the risks accordingly.
There are abundant and ample residential units available in Hyderabad and Secunderabad to meet the housing needs of its existent and immigrant population. But finding the right property at the right place is the challenge in choosing the ideal investment. This is where housing.com helps investors in choosing the best property at different locations of Hyderabad. It is possible to pick Hyderabad properties at housing.com according to one’s budget and investment portfolio.