Residential Real Estate Outlook

With falling inventory levels, 2011 looks to be a much better year for the Real Estate Industry and buyers and sellers.  The home inventory in Ada County fell by over 1,000 homes in 2010, ending the year with just over 3,600 available to purchase.  Prices fell in 2010, but not like they did in the previous two year when we saw over a 15% decline in values. 

Last years decline was a little less than half of the previous year at 7.4%.  We think we have finally hit the bottom for declining values.  The next hurdle will be interest rates.  With the economy struggling to gather momentum, government spending at an all time high and now perhaps gridlock in congress we could be in for a rise in rates.

Will 2011 be the year to see recovery in the residential real esate market?  Read what the experts at the National Assoication or Realtors has to say.

Residential Real Estate Outlook

Comments

[built on your lot homes]

The market is changing out there, and the latest reports are showing that when it comes to buyers, less is more in some cases. The recent housing slump has meant buyers are looking for smaller houses. The affordability ratings are part of Housing Cycle Barometer, which calculates the ratio between housing costs for the median-priced existing home and income levels. They analyze 26-plus years of history in each metropolitan area, and compare the current ratios to the median ratios in each area. The down payment and mortgage payments are appropriately weighted based on total expenditures over the life of a typical home purchase. This methodology accurately determines which markets are overpriced and under priced, even in an environment with historically low mortgage rates.

[omaha homes for sale]

Profit was at its peak for this age group and raised families which resulted in an increase in the demand for large suburban homes.By 2020, however, the Baby-Boom generation moves into another phase of their life and empty nesters-active pensioners. What this means for property investors is that housing demand will shift from single family homes in the suburbs with multi-housing rental units and/or condominiums.

[sell my home]

In the residential real estate realm, the term "House Flipping" or to "Flip a House" is often inaccurately used to describe certain real estate investment practices. Flipping is more accurately a term used to describe short term, low effort means of generating profit from real estate. Flipping is closely related to Real estate investing, practices such as renovation and Rehabilitation (or "Rehabbing") rely on similar principals to flipping. The difference being flipping often relies on profit from market manipulation or buying below value and selling above value and Real estate investing would rely more on improvement of the property, legal use of the property and existing market trends to determine profitability.