Two basic factors are laying the foundation for a dramatic real estate recovery:
- Historic drop in new construction
- The steep decline in housing prices
In 28 out of 54 major markets, it’s now cheaper to pay a mortgage and other major costs than to rent the same house.
Non-distressed Markets
Lower active inventory/7 months or lower
New construction will come back fast
Demand will emerge – more than supplyPrices will go up
Rents will increase so ownership will make more sense
Buy now to get ahead of the crowd
Foreclosure Markets
Higher active inventory
Investors are becoming more active
Rental market is strong due to inventory
Will take longer to recover – 2 to 3 years
Prices will continue to drop due to so much active foreclosure inventory
Demand will start increasing due to affordability
No comments:
Post a Comment