Real Estate and the Economy: 2013 Forecast

The real estate market is still recovering from the housing bust of years past, but make no mistake that this is a recovery. Although old wounds aren’t entirely healed just yet, the industry has definitely graduated from gauze and dressings to Band-Aids. That’s great news not just for home buyers but for real estate investors and agents.

Bouncing Back from the Bust

Real Estate Bust

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The real estate market is better than it has been since its rapid collapse. It’s not doing as well as it was in 2005, of course, but it’s reaching a place where it’s comparable with 2008. Don’t wait for a huge, miraculous leap back to a high peak; that won’t happen any time soon. However, housing stats are gradually increasing, so people are less and less wary.

More people are renting now, but more people are also thinking about buying. Moreover, those homeowners who lost their homes through foreclosure several years ago are now reaching the end of their waiting period. All this time, they’ve likely saved money back for the day when they could once more think about purchasing another home. Because they know that homes still aren’t selling that well, they also know that there are good deals looming on the horizon. Further, the renters are ready to become first-time homeowners. They’re keeping their eyes out for beautiful homes at affordable prices.

Constructing a Buyer’s Market

Buyers Market

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Some people simply don’t trust the housing market yet. They want to own outright. How can they do that? They’re looking for building permits. They’re buying property, not houses. More potential buyers want to build their own homes instead of relying on the ready-made market.

However, private owners aren’t the only ones with an eye toward construction. Investors are seriously thinking about building new housing developments, as well as private residences. They, too, are now interested in buying property and going after building permits. For the savvy real estate mogul, all of this offers endless opportunities.

Financing the Future

Future Finance

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Predictions suggest that unemployment rates are on the decline. That means people will have more money. Because more people rent their homes instead of buying them, they’ve not only saved money, they’ve paid off their debt as well. This means that they’re in a better place financially. Although interest rates may get higher as well, potential homeowners are more likely to qualify for home loans. This makes them optimistic, because it offers the chance for buying homes.

Changing Up Your Investments

Real Estate Investment

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All of this means that, with an eye toward change and smart investments, real estate investors, agents, and developers have a fantastic opportunity to make a lot of money. By considering building permits and developments instead of single family homes, there are investment opportunities galore. However, it’s important to keep in mind the needs and the assets of the public. It’s necessary to make certain allowances, but that doesn’t mean losing out on the chance to take part in the housing industry’s gradual but steady improvement.

Keeping an eye out for future developments allows real estate professionals to take advantage of the present. Are you thinking of investing in housing developments and property sales?

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