Have you ever thought of the Nike Swoosh tick to represent our
2012 real estate market? Well this is the trend that the real
estate market is taking going into this new year.
Jed Kolko, the chief economist at Trulia.com, insisted that
the cities that are most likely to continue to have strengthening
real estate markets were the rather smaller ones. The listed
locations were our city of Boston, as well as Austin, San Jose,
Houston, and Rochester in New York state. Kolko also shares that
along with mortgage rates which he feels will rise, the increased
need for construction and growth in many of these small cities is
due to the increased demand for rental units, thus allowing the
landlords to obtain higher rents.
Rich Arzaga, the founder and CEO of Cornerstone Wealth
Management, feels that there is a rising trend of individuals only
buying homes later in their lives. The younger generations, or echo
boomers, as he termed this demographic of society, will continue to
rent. Therefore, this segment will increase the necessity for such
rental properties all whilst causing greater rates being achieved
by landlords.
Jeffrey Rogers, President of Integra Realty Resources,
alsoiteratesthe sentiments from Kolko. Rogers explains how
multi-family units were the ones that were continuously funded for
new developments in recent memory despite the economic recession.
As a result, there were more units available for rental purposes
simply because there had to be to meet the demands of the
(typically) younger clientele.
All in all, we must not get ahead of ourselves. Kolko and the
other experts all are optimistic about the future real estate
outlook, but know better than to jump the gun and go on record
saying things are back to normal. The message from this article is
that even with a fantastic 2012, we may not be where we were some
years ago in terms of the strength of the real estate market. It
could be by the end of 2012 or even years later when this much
awaited achievement occurs. So back to the Nike Swoosh mentioned in
the beginning. This is where what we are now facing. Our market did
go down very sharply to where it felt like rock bottom. It is now
the moment for us to ride this market up, as gradually as possible,
to climb back and recover, slowly but surely.
More Information: Reuters.com