The current housing market is bleak: home prices and sales are plummeting, foreclosure proceedings are skyrocketing and mortgage rates are on the rise, but there is a brighter tomorrow, where real estate is concerned. Homes that are being appraised for lower values today will eventually begin a steady clime up in the near future.
In fact, according to a new study from the Joint Center for Housing Studies of Harvard University, “The State of the Nation’s Housing 2008,” finds the country poised to see an increase in housing demand over the next decade. The housing market will make a come back, it always does. Real estate appraisals will once again garner you a healthy value report, and mortgage lenders will start to feel comfortable giving loans to those with good credit. How may you ask? Read on and you will see.
One of the reasons the outlook in the housing market may perk up is the fact that America’s population is continuously growing, and with that growth comes more and more people who need a home. Since real estate appraisals rely heavily on the purchase and sales of real estate, this improves the market value of everybody’s home. Another factor is the increased life expectancy of our society. The longer people live, the more they purchase. Let’s face we are no longer content to stay in jobs for 20 years or more, and with longer life comes the desire for more variety, and that includes our homes.
Than we have the hotly contested immigration issue. One of the positive aspects of immigration is the fact that we have more people contributing to consumerism, and that includes the housing market. Many appraisers in the industry point to the fact that a lot of their appraisals are homes that immigrants own, which is why one study states that, “the good news is that we still have a growing population,” said Nicolas Retsinas, director of the Joint Center for Housing Studies and one of the study’s authors. “As long as you have more households, more people are going to need places to live.” This same study finds that from 2010 to 2020, the number of households in the United States will grow by an average of more than 1.4 million per year. That’s great news, especially considering the condition real estate and the housing market are in today.
Now, if you add to that the fact that right now the housing market has an influx of homes being sold, you understand why buyers are in a better position today than they were just a year ago. As I’ve stated in previous blogs, the housing market goes in cycles. Granted this last seller’s market cycle was doozy, but what goes up always comes down and that includes the price of real estate. Homes real estate appraisers were valuing at $500,000 and more here in Los Angeles, are now being appraised for around $300,000. While you could be pessimistic and look at that as a horrible thing for the housing market, you could also be optimistic and look at that as a great opportunity for those looking to buy.
I’m not saying that the housing market will turn around tomorrow, but it will turn around. At this point, it may just be that the outlook on real estate will just get better by the day. So, if you or somebody you know is thinking about jumping back into the housing market, please visit www.iappraiseforyou.com and complete your appraisal request form today.