Current State of the Real Estate Market

Florida is a bellwether state for the U.S. in that trends that occur in Florida tend to be experienced by the United States as a whole. Florida has pushed through some major events such as the Florida Housing Boom in the early 2000’s, the recession in the mid 2000’s, and the long but steady recovery phase towards the end of the 2000’s and modern times.This trend in housing occured throughout the United States and was a key feature of the Great Recession. It is possible to better understand housing trends and economic effects by focusing on a particular example of housing in Florida. In addition to the direct relationship between prices and demand for condominiums in Florida, there is also a direct correlation of how events

Making yourself aware of the neighborhood and its growth, studying when the market peeks or if it is still growing, and studying the areas general financial foundation of the city, are all important things you need to be aware of when buying a house. According to Mankiw, "In any market, buyers look at the price when determining how much to demand, and sellers look at the price when deciding how much to supply. As a result of the decisions that buyers and sellers make, market prices reflect both the value of a good to society and the cost to society of making the good." This is one of the principles of economics that can quickly affect the profit of this investment.

First question, what type of real estate market are we in? Is it a buyers or a sellers market. This may very well determine if now is the right time for you to buy. Take 2004 as an example. At that point in time it was a very strong sellers market, which meant that sellers had more control over the transaction and could demand more from prospective buyers. Almost every seller was receiving multiple if not 10 or more contracts on their property. This turned every purchase into a bidding war between potential buyers,

Prior to the crisis, investments in the residential space saw a significant shift around 2002. Prior to that, residential investments over almost a 30-year period was estimated between 4 and 5 percent of the nominal gross domestic product. In only a short period of time from 2002 to 2005, housing prices exploded, housing prices skyrocketed, with the peak prices showing an increase of over 12% per year. (Dokko et al. , 2009)

The racial undertones of Detroit have been extremely problematic to Detroit’s real estate market for well over 50 years. These social disruptions continue to have an effect on the current residents of Detroit. During the middle of the nineteenth century, the Federal Housing Administration (FHA) introduced real estate tactics such as redlining, which is the practice of flagging minority dense neighborhoods for the purposes of denying approval of mortgages or inflating the price of the homes. Redlining had a profound social and economic effect on all residents of Detroit. The white majority began abandoning and selling their homes in fear that the value of the home would plummet, leading to a great financial loss when minorities moved in the area. This idea is known as white flight, and is the primary reason that Detroit has one of the highest African American populations in the country. However, through revitalization and gentrification of the Midtown/Downtown area, Detroit is slowly becoming more diverse. Throughout history, racial politics of the mid-to-late twentieth century affected Detroit 's real estate market by excluding minorities from the real estate market. Although adding stadiums, high end retail, small shops, and restaurants is economically valuable to the city of Detroit, this is conflicting and potentially problematic for the original residents of the area because the prices of these new establishments are often much higher than the residents can afford.

It continues to be a seller's market until 2018. There isn't a clear line that's drawn in the market to show when it's a good time to buy. Potential buyers will have to rely on the knowledge of their real estate agents at that time.

Since last year, lending for multifamily properties has increased by 8 percent. This record-setting year happened because of a growing marketplace and increased demand. While markets generally have boom and bust cycles, the Boston multifamily

The annual conference of the National Association of Real Estate Editors (NAREE) in Miami recently revealed that Tampa Bay’s real estate market is not only unknown, but also undervalued. Florida’s real estate market has historically been dominated by international buyers, such as wealthy Canadians. As Canada’s currency continues to drop against the dollar, more and more Canadians are looking outside of South Florida for their retirement location.

The United States will always recall autumn of 2008 as a time of financial terror, and rightly so. After the stock market crash, millions of Americans, previously unaware of the brewing crisis, lost their businesses, their jobs, and their homes. Even now, we still are in a period of recovery from the economic turmoil of that year.

These days Detroit is in renaissance as a billion dollars has been spent in renovating the downtown area and crime statistics that had given it a bad name is also under control. These factors have attracted many real estate investors to invest in detroit during the recent real estate boom. Until recently the real estate market has been quite active in the big cities like Detroit, Grand Rapids, Warren, Flint, Sterling Heights, Lansing, Ann Arbor, Livonia, Dearborn and Clinton. The real estate market has also been quite active in the smaller cities. However the Michigan real estate market has witnessed a downturn recently and it is continuing.

Where there is darkness there is ultimately light and the various homeownership opportunities under the current economy reflect this notion. Real estate prices

With this thought in mind, Realtor® members across the country were asked, "What do you think the top real estate trends will be in 2017?"

The current housing market is experiencing another large, daunting bubble that I fear is leading to another burst and market crash. The “Baby Boomer” Generation and the “Millennial” Generation are currently experiencing a great disparity gap between the two of them, both in pay and in purchasing power which directly affects the housing market. As the Baby Boomer Generation begins to retire and move on from where they currently live, the housing market will suddenly experience a boom in available housing. The issue then becomes that the Millennial Generation does not currently have the economic buying power to purchase these houses. This issue is currently visible in the Bay Area where housing is at an all time high. Houses are currently being listed as Baby Boomers want to move out of the higher cost of living areas into lower cost of living areas when they retire, but their current listing prices are prohibitively expensive at the current wages the new buying generation makes. These houses are being listed for longer periods of time, many homes listed over a year, with no successful bids.

Seven years removed from recession, American homeowners are beginning to rebound from the hold created by the housing crisis. Throughout history, the housing market has been a key indicator of financial stability and the real economy. Housing booms and bust are often reflections on the mortgage market, labor mobility and consumer spending. With interest rates near zero, at the moment, the real estate market has experienced a steady rise in new and existing home sales, prices and mortgages. Likewise, developments in the U.S. housing market have been instrumental to gains in home improvement spending. In 2015, home improvement retailers, Lowe’s and Home Depot have delivered better than expected results thanks to the housing market recovery. Despite what may seem like a modest recovery, there remains significant concerns that the recovery will be short lived. Some evidence would suggest that interest rates, a flood of foreign investments, income inequality and the same culprits from 2008 are re-inflating a housing bubble.

The overall health of the economy has a significant impact on the real estate industry. The economy is measured using indicators such as the GDP, employment percentages, manufacturing activity, and price of goods. When these indicators identify a sluggish economy it translate directly to declining real estate sales. RE/MAX and the customer alike are directly affected by the economy. A slow economy consists of decreased homes sales while a flourishing economy affords the customer the opportunity to buy, which relates to an increase in home sales for the realtor. (Amadeo, 2016)