Current State of the Real Estate Market

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When an individual is asking about the current state of the real estate market, they should be ready for a complex answer. Many think of real estate in local terms and far too often neglect the importance of giving consideration to the national level. Additionally there are forces such as the state, county, city, and federal governments; as well as banks, the federal reserve, life insurance companies (this will be of particular interest when “Baby Boomers” begin departing and a large influx of payouts reduces the leverage of a once major player in real estate markets), environmental/ecological factors, employment outlook, intent of purchase (rental, personal, commercial) as well as many others to be considered.
All things considered, 2013 was a good year in real estate, though miles away from the peaks of 2006. Home prices on average were 31.5% less than they were in 2006. However, prices rose by 10.9% in 2013, as reported by Clear Capital; a company who monitors the markets in 276 cities and has shown an increase in property values in 225 of those markets for the 2013 year. Now is a great time to buy. With prices and interest rates so affordable, it is truly a buyers market. Especially those looking for investment properties. These individuals looking for a property to either live in for a while, such as raising a family, or to rent out will see a significant return on their investment when the time comes to sell. As with any investment, a little patience is all you need.

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