Now that the election is over, what can we expect from the Real Estate Market?
By Ron Accornero
The Real Estate market has led the economy out of the recession in the last two recessions. Will it happen a third time? My opinion is that it will happen, but it will take more than low interest rates. We have to lighten up the requirements for buyers so they can get loans. Not like we did in the past, where we gave loans to anybody who could sign their name, but bring back the stated income with excellent credit and a history of payments. There is a pool of buyers who can't get loans because they show no income on their IRS 1040,s because they have their own business or work in a cash industry. These people can afford a home but can't get a loan. We need them to get loans so we can move forward. In trying to correct our problem of the past we have over corrected and tightened up the loan market which is denying some good possible buyers loans.
I remember that it
was consumer confidence that was the biggest help in bringing the economy out of the recession in 1995 and 1996. That is what it will take to do it again. But first, we have to go through a period of the negative news media, as I call it. This is a great time to write negative news because that is what people like to read and it sells newspapers and magazines. Many of the financial guru's also like to write their negative news about what they think will happen. We can do without these people. The market will recover a lot faster without them. What we need it a long period of sustained growth and we will be back to where we were. The last recession started in 1990 and started recovering in 1996. This recession started in 2007 and we should see it recover in 2013. That means values will be back to the levels of 2005. In the meantime we should see some good real estate years with values of properties being very stable. This is the kind of growth that grows consumer confidence. This is the kind of market a good realtor can earn a good income.
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