A Changing Real Estate Market
By Timothy L. Stanley
You should always buy low and sell high. This is the oldest rule in real estate. Even though the real estate market is in a slowdown, it may be time to consider investing. Because, some areas of the country are showing signs of recovery. According to the National Association of Realtors (NAR), there are several opportunities to invest with an eye on making a solid return.
The Dallas - Fort Worth region is making a good comeback. It is anticipated that there will be a over a 6% growth rate from 1st quarter 2008 to the 4Th quarter 2009. Jobs are growing at a rapid pace. Banking, advertising, and health care jobs are leading the way. Also, Nokia and Ericsson have a headquarters in Dallas. Plus, other high tech related jobs that support the growing demand for technologically advanced products will add to this upturn in high wage employment. Job growth and high paying jobs in these areas are anticipated to be a solid underpinning for a rebound in real estate fundamentals. The Dallas - Fort Worth was not impacted by the inflated housing market.
Another factor in the fueling the early rebound of the housing market in this area has to do with the low rate real estate speculation. In addition, adjustable rate lending appears to been have been less than many other urban areas. Therefore, the foreclosure created downward pressure on the price of homes will be minimal over the next decade in the Dallas - Fort Worth area.
Another reason for the anticipated growth is the need for new housing. Over the next two decades, population growth increase to approximately 7 million. This will drive the demand for new housing at an accelerated rate. Approximately 3 million new housing units will be required to fill this need.
Will Dallas - Fort Worth and several other areas lead the way toward a real estate rebound? It appears that our recovery in Southern California will by slower. Why will our recovery be slower. First, Adjustable rates were over utilized in the past. Therefore, mortgage payment have increased. Many homeowners will be under pressure to sell their homes. This will cause a short - term glut in the inventory of homes in Southern California. Moreover, foreclosures will rise adding to the glut in homes on the market. The excess inventory will start to dissipate by 2009. By 2010 the excess inventory will be gone. So, the demand for housing will increase vigorously by 2010. Our recovery will lag behind Dallas - Fort Worth.
This is great news for Southern California home buyers. There are tremendous opportunities for buying Southern California real estate at reduced prices during this slowdown. It is a buyers market now. This year will be one of the best years to invest in residential housing and income property of four units or less. Owner occupied income property of four units or less can really be a bargain, because mortgage rate for this type of property are relatively low. And, most owners offering this type of property are quite open to negotiating.
Southern California will be right behind Dallas - Fort Worth in recovering from the slumping real estate market. The population is growing and job are plentiful. Demand for real estate can only be suppressed for a short time. Thus, the real estate market is recover at vigorous rate very soon.
Needless to say, Southern California is profound buyers market. Today, investing in Southern California real estate can be a highly profitable decision that will yield enormous returns. In conclusion, don’t let this buyers market steam past you. Contact a Realtor® today. Buy real estate, because it’s the best buy in town.
If you would like more information about real estate values in your area, please call Timothy L. Stanley at 626-230-0741. He is a Business Writer and Realtor® with Dilbeck GMAC Real Estate . This article was published in the Rosemead Herald and The California Reporter. All Rights Reserved.
