What You Need to Know About Homes and Land
A common saying in real estate is, “Your home is the biggest investment that you’ll ever make.” That’s true in many cases, except for those who have purchased high-priced franchises like restaurants.
But for homeowners across the United States, our homes are the biggest investments in terms of their cost and how much money is needed for maintenance.
When we talk about real estate and our home, we often ignore what lies under every piece of property whether it’s commercial real estate, multi-family units or single-family homes.
Do you know what it is?
How do leverage buying land so you can have an affordable home? Or how do you go about selling your land if you’re ready to dispose of it?
Let’s look at current residential real estate trends to get perspective.
The 2021 Home Buying Market
Potential homebuyers trying to purchase a home in Dallas, Texas have been competing with dozens of other buyers in a red-hot market during 2021.
It’s not a surprise that Texas is popular, especially with families moving in from places like California and the northeast. But it’s not the only location that homebuyers have set their sights on.
Tennessee and Florida are sunbelt states that have been desired as relocation destinations.
But this year’s hottest markets are in places that may surprise you as trendy. Robust markets are found throughout the U.S.
Realtor.com says, “Housing hotspots are the most spread out they’ve ever been.”
Get ready for surprises.
New Hampshire comes out on top in this Realtor.com May 2021 update.
Manchester-Nashua earned first place ranking while Concord came in second.
Portland-South Portland, ME
Johnson City, TN
What Impacts Home Prices?
These cities are “affordable pockets of housing where buyers can find homes in their price range.”
That says a lot doesn’t it?
“The hottest markets saw median listing prices reach $311,000 in May—18% lower, on average, than the national median of $380,000,” states the report.
Realtor.com doesn’t have the last word, though.
In July 2021, the Wall Street Journal ranked Billings, Montana at the top of its emerging markets list.
Now, it’s nice that those median listings are on the lower end of $ 300,000, but why aren’t they even lower?
Across the U.S., housing prices are 15% higher now than a year ago in the summer of 2020, according to the American Action Forum in a write-up on Understanding the National Increase in House Prices.
Buyer demand exists, in part, because of low interest rates and people who left urban areas during the height of Coronavirus and moved to smaller towns.
Housing supply is low. New construction is lacking because of an “absence of labor, high construction costs and local zoning restrictions.”
How can You have an Affordable Home?
If you’re a family with young children, or you’re heading into retirement on a very fixed income, then those home prices in the smaller markets could still be too high for you.
Land can be a solution.
Land is a tangible asset and typically you’re not getting competition from investors who prefer flipping houses to make quick profits.
If you’re a first-time home buyer or you have a lot of equity built up in a property, then you could consider buying land and having a modular home or a manufactured home. Both are quality choices that can be less than traditionally built homes and still have the comfort and amenities you like.
Sandra’s View on Land
Sandra has spent over 30 years involved in a variety of real estate transactions—from international to residential.
She believes that land “puts the buyer in control and provides independence, security, and a satisfying quality of life.”
It’s possible to buy land and have an affordable home near emerging markets with plenty of cultural and entertainment options.
Learn more with Sandra’s free guide to Buying Land: The Heart and Soul of America.
Contact Sandra for a brief consultation and let her know of your interest in either buying or selling property.