real estate trends2011
Real Estate Trends 2012
So how will the real estate market do in 2012? There are several facts that we need to ponder on and explore by taking a look at the real estate trends. 2012, is a year in which the market, hopefully, is going to recover in some cases and the preferences of the consumers are going to differ a bit.
- Higher demand for property in a certain geographical region, tends to push up the price of the real estate in the said region.
- The second aspect is the price fall. Conventionally, the lack of demand leads to the fall in the market prices of real estate.
- The increasing trend means that properties in a certain region have high rising values. Such a rise is usually observed in cases where the region starts developing rapidly, or as a result of industrial regions in vicinity. In some cases, such as in several areas of New York or Washington DC, the demand simply rises due to the fact that earning population of the region is simply too large. Substantial economic empowerment or the creation of amenities also forces the real estate values to shoot up drastically.
- On the downside, there are also several rational reasons as to why the prices of certain properties tend to shoot down. A general downhill shift in the economic projections of the region is one cause that we experienced during the recession. A general drop in the economy, bankruptcies, foreclosures, excessive lending and breakdown of mortgage and lending industry are some of the reasons that lead to the fall in the demand for property in a certain region or locality. Industry experts have commented that reasons such as overcrowding, lack of proper civic amenities, or even pollution can lead to a substantial drop in the real estate demand.
- The overall real estate market prices are going to remain quite low, that is, in comparison to the prices of the properties in the preceding periods which were substantially higher. Foreclosures, bankruptcies and lay-offs in the recession and the less number of mortgage creators and stricter underwriting conditions are going to influence such low prices.
- Trend-wise and on the graph these prices may seem to be discouraging and also not entirely so very nice. However, for people with enormous life savings, those with stable jobs, this is also a great time to invest in real estate, which have a relatively low market value. Now, it is very, important that one gets to know why the market prices are low. In cases where the market prices are low due to problems in the property, it is recommended that one should not invest. Apart from that if the market conditions have led to drop in its price, then it would prove to be a really great price to buy such a property.
- The mortgage market is also going through a substantial set of changes. One key change that is going to affect the mortgage markets is that the underwriting and approval rules are going to be stricter than before. So 2012 won't be a good time to put money in the real estate sector for profits as the prices are going to continue falling. However, for those who are looking for homes and have ready cash on hand, this is a great time. Real estate, once beyond your reach due to high prices, is going to be within your grasp.
- The focus of common individuals has shifted to smaller homes and apartments and in contrast, the demand for larger suburban estates has come down.
- Lastly, the demand for new construction in suburban areas has gone down and in return the demand for apartment construction has increased.
- In upmarket localities of major towns in USA, rentals will bring in a good amount of dough, as the economy creates more jobs. With more demand for rental apartments, the rent is bound to rise proportionally. So things may finally look up for landlords and they may earn more. Ergo, cornering rental properties would be a good investment in areas where demand for such properties is high.