It’s human nature to be curious with what the future holds. Most folks would like to gaze into their crystal ball and tell what’s forthcoming. One thing is for sure when it comes to forecasting the future of real estate, we do not want the next five years to be a repeat of the last five years. Just like most commodities, real estate is cyclical, the difference being housing has a longer infallible cycle. The last five years have seen depressed home prices, lost jobs, an endless supply of foreclosure properties and enumerable short sales. Just like a patient after surgery, we are now heading into a recovery phase.
There are many different elements that will determine how quickly we completely recover. The downturn did not happen overnight and neither will the recovery. Home buyers confidence level is certainly peaking, but that could change swiftly, if mortgage rates drastically increase. Jobs are vital to the housing recuperation and a man without a job is a man without a home. A full-fledge conversion won’t happen until the steady stream of foreclosures subside. Short sales has had a devastating effect on home prices. The majority of short sales are under-priced and would probably have more value if they were being sold under traditional circumstances.
With most communities now seeing some light at the end of the tunnel, the pendulum has swung back toward market stability. There are steps in place that will assure we never go back to those dark days that encompassed the real estate industry. Lenders have a more rigid protocol than in years past, appraisers are actually doing more than driving by a property and instantly accessing value. Buyers for the most part are willing to pay a fair price for a home, but not a penny more. Realtors are doing their part by educating homeowners on the adverse effects of over pricing their property and steering home buyers away from those market dragging over priced listings.
Based on the past and the present, the future looks favorable. We should start experiencing some appreciation in the next couple of years and in five years the overall housing recovery should be in full bloom. Ultimately the economy will decide how quickly the housing sector recovers. Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.