Real Estate Forecasts


The media has played a key role in the real estate downturn across America. Newscasters began to forecast housing prices rising at unprecedented levels a couple of years back in certain locales. Much of this appreciation came from real estate investors. The media pundits wondered how this pace of tremendous appreciation could possibly continue and what had sustained it for as long as it had. This conversation made people stop to consider why this was happening and when, or if, it might stop. Now that pause has turned the housing market inside-out.

Why has this happened? Many housing markets that experienced huge appreciation were out of line with their true market values. There were gaps between housing prices and what that local economy could sustain based on projected or true job growth in many regions of the U.S.. These key value indicators were seriously out of alignment. This misalignment, in some instances, left a lot of room for prices to freefall or take large corrections in order to reach a cost vs. value ratio or fair market value.

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