The Housing Market Today

August 28, 2006

The Housing Market cycle and changes of today - some of us, the real estate professionals and clients, have been through these cycles.  Sometimes it’s so fast-paced it can become difficult to keep-up the pace.  As a full-time professional I have also gone through the more even-paced, or normal, cycle.  In either cycle, it can be a win-win for my clients.

No matter what, clients rely on us to guide them through the offer process and find the ‘right deal’ for them.  Currently the U.S. has returned to a more normal real estate cycle.  This makes the opportunites even better for the long-term investor.  The reasons, right now, the available properties for sale provides a wider selection for the buyers to choose from.  Interest rates are still lower than they have been over the past few decades.  Real estate in California has increased in value many times over - and still is a bargain.

Harvard University’s Joint Center for Housing Studies recently stated that cooling home sales nationwide won’t last long because of continuing strong household growth.  It will fuel the demand for more housing.  Over the next ten years, there will be at least 2 million more new households than were formed over the past decade.”  On the strength of this growth alone, housing production should set records,” according to the report.  Don’t expect prices to plunge as a result of the current slowdown, either.  The different markets are seeing neither big employment drops nor an overbuilding in housing supply - which are two conditions that precipitated price falls over the past.

Many investor clients are seeing this as an opportunity to accumulate additional properties - so should the homeowner who wants or needs a place to call home.

Again, real estate in California has increased in value many times over during the past few decades - and is still a bargain.

For additional information or questions about real estate, call me (619) 297-7001.

Posted in Real Estate