The real estate market is white-hot in suburbs all across the country. City dwellers are getting into bidding wars as they relocate, driving prices through the roof in the process. Meanwhile, urban markets are soft, meaning it might be the right time to consider a long-term investment. Even if you don’t plan on moving downtown in the immediate future, here are a few reasons why buyers should keep an eye on the city.
Buyer’s Market
In many cities, the luxury real estate sector is a buyer’s market for the first time in years. With growing inventory and less competition, you’re more likely to find that perfect city home you’ve been dreaming of. Of course, sentiment can change quickly, and there’s no telling how long the current climate will last before things heat up again.
Long-Term Value
Luxury real estate in the city’s most desirable neighborhoods is a safe bet to bounce back quickly. After all, the abundance of culture, nightlife and convenience will play a key role in drawing people back. Established areas, such as neighborhoods that are historic or benefit from proximity to the central business district, will always have a lot to offer. While you probably won’t be flipping it anytime soon, as long as you plan to hold on to a property in the city for the long term, now could be a savvy time to make a purchase.
Low Mortgage Rates (For Now)
Rates for 30- and 15-year fixed mortgages remain near all-time lows. However, that’s slated to change when the “adverse market” fee goes into effect. This will add a fee of 0.5 percent of the total amount loaned, and will likely raise interest rates, meaning that now is as good a time as ever to lock in a favorable rate in a buyer’s market.
