Brian O’Connell has an interesting article in The Street, 5 Trends Shaping the 2018 Real Estate Market where he has some excellent insights into what we could see happen in real estate investing in 2015.
Two of his points specifically stuck out. First, bank getting more aggressive in leanding, which should be great for investors and his point that we could see a jump in vacation home sales as some taxpayers will see more cash available due to the tax changes.
It will be very interesting to see whether they will be investment opportunities in buying second homes, in lower tax areas.
Banks will get aggressive about mortgage loans.
Homeowners, especially those who buy homes as an investment, should see more loan opportunities in the new year, as banks actively pursue buyers. “The banks, which have been tight for years, finally opened up lending and are offering so many more diverse loan products,” says Anthony Grosso, a real estate broker in Malverne, N.Y. “We purchased a commercial building in 2016 that no one wanted to finance and recently the local banks knock on my door asking me to refinance with them. This increase is lending has opened the market to so many more buyers — and that’s a trend that will strengthen in 2018.”
More vacation home buyers.
Due once again to the tax reform bill, which will put more cash in affluent Americans’ pockets, vacation home purchases will tick upward. “The new tax plan will likely spur interest in second homes, such as vacation homes, for those who can afford them. Interest rates and interest deductions are not as important as many of these purchases are cash transactions,” says Glenn Phillips, CEO of Lake Homes Realty, in Birmingham, Ala. “Economic optimism will fuel this sector of the real estate market.”