Posted by For many citizens in American, buying real estate has become like the subject of interest hitting the news on a daily basis. Many people might be getting all confused by the market conditions today. The real estate sector might have gotten the shocker and perception of instability owing to the publicized collapse and failure of major financial institutions in this part of the world. If you choose to view this situation in a long term basis, you can get a better picture about American real estate and especially in the year 2012. This in fact is the perfect opportunity for you to venture into the housing and real estate market.
Over the past 10 years, we have witnessed an unprecedented rise in real estate prices, a housing crash, the near-total freeze of lending for residential real estate, and a recovery in housing prices that occurred almost as quickly as the preceding crash.
But the real real estate revolution has yet to happen. At the Bipartisan Policy Committee’s Housing Summit in Washington this week, everyone from policy makers, to home builders, to academics are concerned about one thing: America’s coming demographic transformation and how it will change housing in the coming years.
Source : http://fortune.com/2014/09/17/american-real-estates-future-older-poorer-and-more-diverse/
In any case, there is a high probability that you will make some handsome amount of money by investing in any housing marketing within America. The housing market today is not just being influenced by banks and other financial institutions but the regional conditions also have a role to play in this case. In order to understand whether it is the right time to buy American real estate, you need to consider some aspects such as the local economy, government stimulus and the levels of foreclosures. These are not the only elements you have to consider as the market determines the factors you are operating in.
Real estate represents a significant portion of most people’s wealth, and this is especially true for many homeowners in the United States. According to thr most recent Survey of Consumer Finances by the Federal Reserve, 65.2% of American families owns their own primary residence. The size and scale of the real estate market make it an attractive and lucrative sector for many investors. This article will look at some of the main factors that affect the real estate market and the variety of investments available.
Demographics
are the data that describes the composition of a population, such as age, race, gender, income, migration patterns and population growth. These statistics are an often overlooked but significant factor that affects how real estate is priced and what types of properties are in demand. Major shifts in the demographics of a nation can have a large impact on real estate trends for several decades.
For example, the baby boomers who were born between 1945 and 1964 are an example of a demographic trend with the potential to significantly influence the real estate market. The transition of these baby boomers to retirement is one of the more interesting generational trends in the last century, and the retirement of these baby boomers, which began back in 2010, is bound to be noticed in the market for decades to come.
The American real estate sector is influenced a lot by media hype. You should not be swayed by waves but base on the assessment of your own unique situation. There are many avenues you can use when investing in the real estate business in America. You can get a great feeling of satisfaction when you buy your first house. If you are renting your current apartment, you may consider investing that cash towards the acquisition of mortgage. In that case, you will be paying in to your own investment. You however need to rethink your situation before making any step this way to assess whether it really suits your circumstances.
Real estate is typically a long hold period compared to many assets. To look to invest in real estate as a short term investment usually has harsher consequences. A great example of short term real estate investment is flipping, which entails buying the investment underneath market norms and selling around the middle of the surrounding market values. It has the risks of any other speculative investment. It can be high risk because it is a short term investment play. If the investor can hold long enough, most markets will increase in value due to the lack of inventory and demand outstripping supply. Decisions to sell may be more difficult for owners with short term ownership especially when real estate values have not increased or have dropped since the home was purchased. Home owners with short term ownership may have mortgage balances higher than the value of the home and a sale would require bringing cash to the closing to pay off the mortgage balance. Home owners with long term ownership and substantial equity can make selling decisions easier than owners selling their home without the benefit of real estate appreciation. In either case, the real estate market is the real estate market, regardless of when the home was purchased, and the home is worth what is worth.
Source : http://independencetitle.com/what-factors-are-important-when-looking-at-real-estate/
