On any given day, people can easily find articles and news stories describing an impending bust of the so-called real estate bubble. Despite this gloomy prediction, many experts believe that the recent slowdown in housing will be a gradual and modest readjustment rather than sharp bust or decline. These experts believe that factors that lead to a sharp decline in the real estate market are just not present in the current economic outlook. In fact, a recent study by the Joint Center for Housing Studies at Harvard University noted that “despite the current cool-down, the long-term outlook for housing is bright.”
The rise and fall of the real estate market is subject to the forces of supply and demand, and these factors point to stable and positive growth in the real estate segment.
SUPPLY FACTORS
Limited supply of real estate makes it scarce and usually pushes home prices up. In contrast, an oversupply of real estate tends to put downward pressure on home prices. Despite the current slow down in the real estate market, factors that impact limited supply favor continued growth in the real estate market. Some of these factors include:
1. Builders have readjusted growth plans in regions that have an oversupply of new housing. Over time, any excess inventory is likely to be depleted and equilibrium achieved between supply and demand.
2. The availability of land in certain regions, as well land use regulations and associated compliance costs will continue to restrict the supply of new homes.
DEMAND FACTORS:
Housing located in regions with high demand tend to be more expensive than homes in regions with low demand. Factors that impact the demand for housing suggests a favorable long-term housing outlook. Some of these factors include:
1. No current evidence of significant and across-the-board job losses; forecasts of relatively low unemployment rates.
2. Long-term increased demand for second homes, vacation homes and senior housing by baby boomers.
3. Long-term increased demand for entry-level homes by the children of baby boomers.
4. Long-term increased demand for entry-level homes by immigrants.
5. Long-term increased demand for entry-level homes by second-generation Americans.
6. Forecasts that the outflows and inflows of the U.S. population in and out different regions will not significantly impact the overall U.S. real estate housing market.
7. Relative stability in interest rates.
8. Continued stability in long-term home appreciation rates.
9. Overall, rising rate of wealth across all age groups.
SUMMARY
In summary, strong household growth, overall rising incomes and wealth, and a stable economy all bode well for continued long-term growth in the real estate market. While the overall housing outlook is favorable, affordability will continue to be a challenge, as wages, especially in the lower income levels, have not kept up with housing costs.
FIDEL
An economics presentation at Humboldt State University. Special guest lecturer Dr. Christopher Thornberg of Beacon Economics discusses the current housing bubble and its effects on California.
CARTER
Please can any one help me to join a Real Estate company?
please i am looking for an company or organzation who is deals real esate,i want join them and be a member or partener with them,please if you know any informatiom s please contact through my email ,cityhopess@yahoo.com,
please it is serouse biz,
Thanks
DOMINIC
My realtor mentioned that the carpet is standard — frizee, which looks nice and is neutral. I searched the web and see lots of real esate websites advertising homes with frizee carpet in the bedrooms, etc…
ABRAM
I am wanting to know how to jump head first into the real estate market and get my feet wet while still making money. I do not have any experience what so ever, just a real urge to get into this market! I want to take classes but, I really don’t know what I need to take 1st and I want to start on my associates degree as a at-home work study but, I’m not sure what employers are looking for as far as education in the real estate world other than Business Admin. I hope there are some real estate guru’s on here to help a sista out! Thank you in advance!
EDMUND
Last night I told the guy I love how I have been feeling lately and how unhappy I have been. I told him how I felt second to everything in his life. He listened, did not comment and said that we would talk about it in the morning. This morning he told me that I wasn’t the only one disatisfied, that his mother,grandmother,sister and everyone expects him to do more and need him and want him. He says that he feels like he is being pulled in twenty different directions. I have been trying to understand, but I feel that since I am willing to spend my life with him and be only dedicated to him then I should get more time than others. His life is very complicated compared to mines, and I don’t have nearly as many responsibilities or people dependent on me, but I am unhappy. I love him so much, but I get tired of waiting for him to make time for me. What I imagined for our relationship was him seeing me at least once a week or so and us hanging out more but it’s nothing like that. It’s about to be two weeks and all I have done is talk to him on the phone. He told me that he doesn’t really enjoy hanging out with his grandma or family, that is where he has been these last weeks before school helping her in her shop because times are hard for him and he is trying to make money because the real esate business is bad but it doesn’t stop my feelings of neglect. He says that helping his grandma and being around his family right now is beneficial to him and putting money in his pocket which just spending time with me doesn’t and I can’t give him anything because I am school and dependent on my father. I don’t know what to do because I love him so much but I don’t want to keep having these feelings of disappointment because he can’t be with me. I know my expectations for him is a little high but I have imagined so long what I relationship would be like and now that we have one and it’s nothing I wanted or imagined all l I feel is sad,angry, and disappointed.
My emotions are playing tug-of-war. One solution my mind tells me is to leave him and wait or try to find someone who has more time to spend with me and make the mistake of not finding anyone,messing up something that wasn’t great but better then nothing, and end up being alone.
My second thought is to stay because I love him and accept that there will always be not enough time for me and maybe make the mistake of not moving on because there was someone out there better than him for me and regretting it later.
I don’t not want to have any regrets.Should I take my chances out there maybe finding someone or maybe not who will have more time for me or keep what I have and deal that things are what they are?
I need help, please people with experience and no jokes!
ALEC
I am in escrow on some property in which the seller and his real estate agent were not very forthcoming in their disclosure statements. Through a third party I found out some things about the property that are detriments (such as occassional flooding) but I am willing to overlook them and still purchase the property. I have released all my contingencies and we have a close date set.
My real estate agent happened to tell the seller’s real estate agent that we found out some of these things on the property - most importantly about the flooding - and now the selling real estate agent wants me to sign a bunch of documents listing out what I found out as if she had told me about them. I don’t want to do it - it took considerable effort for me to uncover these issues and I have already signed off on contingencies. I don’t think I need to also let her off the hook as if she had disclosed these things to me - she did not. Can the realtor force me to sign these?
I am asking if a real estate agent can legally force me to sign informal and misleading documents in order to progress with the purchase? The seller and I have already signed all legal documents as outlined in our legal contract.
ALBERT
