Interesting article in the April 11, 2011 issue of Fortune Magazine that Real Estate is poised for a rebound. Of course, we all know that real estate must be viewed in micro-economic terms, according to city or neighborhood. It depends on jobs, level of foreclosures, rental climate, housing starts and many other factors.
This article points out that the companies that study the supply and demand of real estate believe that its poised for a rebound, especially in non-distressed markets like Denver, or Dallas. The first reason is that housing starts are so low that they may not be able to meet demand. There is always a certain percentage of home buyers that wants a brand new home and if there aren't enough available, the prices will get bid up. The second reason is that the old rent vs buy analysis is leaning toward BUY. There have been steep declines in prices, but rental payments have been increasing. The net effect is that its starting to be cheaper to buy than rent for some. These two things should lead to an increase in home values.
For more information call Todd Groth at 720.203.9624, or look us up online at www.BevGrothProperties.com
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