In Two Years, Real Estate Will Rock

By
Real Estate Appraiser with Grimaldi Appraisal Services

In Two Years, Real Estate Will Rock  

 rocky coastline Maine

Housing starts will nearly double and home prices will begin to rise in 2013, with prices increasing significantly in 2014.

Those rosy predictions come from a new semi-annual survey of 38 of the nation’s leading real estate economists and analysts by the Urban Land Institute’s Center for Capital Markets and Real Estate. The economists foresee broad improvements for the nation’s economy, real estate capital markets, real estate fundamentals and the housing industry through 2014, including:

  • The national average home price is expected to stop declining this year, and then rise by 2 percent in 2013 and by 3.5 percent in 2014.
  • Vacancy rates are expected to drop in a range of between 1.2 and 3.7 percentage points for office, retail, and industrial properties and remain stable at low levels for apartments; while hotel occupancy rates will likely rise;
  • Rents are expected to increase for all property types, with 2012 increases ranging from 0.8 percent for retail up to 5.0 percent for apartments;

These strong projections are based on a promising outlook for the overall economy. The survey results show the real gross domestic product (GDP) is expected to rise steadily from 2.5 percent this year to 3 percent in 2013 to 3.2 percent by 2014; the nation’s unemployment rate is expected to fall to 8.0 percent in 2012, 7.5 percent in 2013, and 6.9 percent by 2014; and the number of jobs created is expected to rise from and expected 2 million in 2012 to 2.5 million in 2013 to 2.75 million in 2014.

The survey, conducted during late February and early March, is a consensus view and reflects the median forecast for 26 economic indicators, including property transaction volumes and issuance of commercial mortgage-backed securities; property investment returns, vacancy rates and rents for several property sectors; and housing starts and home prices. Comparisons are made on a year-by-year basis from 2009, when the nation was in the throes of recession, through 2014.

For the housing industry, the survey results suggest that 2012 could mark the beginning of a turnaround - albeit a slow one. Single-family housing starts, which have been near record lows over the past three years, are projected to reach 500,000 in 2012, 660,000 in 2013, and 800,000 in 2014. The overhang of foreclosed properties in markets hit hardest by the housing collapse will continue to affect the housing recovery in those markets. However, in general, improved job prospects and strengthening consumer confidence will likely bring buyers back to the housing market.

 

Keeping you informed every step of the way.

 

 

 

 

Deb Grimaldi

Re/Max 1st Choice

980 Reservoir Avenue

Cranston, RI   02910

(401) 837-9633

http:/www.debgrimaldi@cox.net

 

Looking to move to Rhode Island & need some help sorting out the areas that are best suited for your family, call Debbie to help make your move more enjoyable.

 

Posted by

Deborah Grimaldi

Re/Max 1st Choice

980 Reservoir Avenue

Cranston, RI   02910

Direct 401 837-9633

 

 

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Show All Comments
Rainmaker
3,295,856
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Don't know about you but they are rocking here already.  I'll at least double my income from last year if the trend keeps up.  Enjoy the day

Apr 04, 2012 09:33 PM #1
Rainer
341,274
Steven Van De Beuken
Altitude Home Loans - Tucson, AZ

Business is booming in Tucson! Owning a home is aready less expensive than renting here. Thanks for the forecast!

Apr 04, 2012 09:38 PM #2
Rainer
187,508
Rick Snow - Selling El Paso TX
EXIT West Realty - El Paso, TX
Cool Deals on Hot Real Estate in El Paso, Texas

I have evry confidence that our economy will come around but I love how the economists have their crystal ball all shined up and pointed at the future. I went to a conference awhile back and there were 3 different economists speaking. Guess how many different predictions we got. You bet, we got 3. Just sayin. Have a great Easter. 

Apr 04, 2012 10:14 PM #3
Rainmaker
169,663
Deborah Grimaldi
Grimaldi Appraisal Services - Cranston, RI
(401) 837-9633

Hi James,

 

Great news, way to go, I hope you triple the income!

 

Hi Steven

 

Tucson sounds wonderful right about now! Great news with the home ownership, that surely helps out things for biz.

 

Yes, Rick I agree, they all have something to say, I guess we have to just hope for the best for everyone's sake.

 

Have a great year boys!

 

Apr 05, 2012 04:50 AM #4
Rainer
154,570
James A. Browning
Browning Real Estate School/REO Institute - International, IT
MRE REOCertified(R) SSCertified

Thank you for sharing your blog; we need Real estate Professionals to share their comments and information regarding their markets and experiences. Thanks again from beautiful Colorado

Jun 11, 2012 03:51 AM #5
Rainmaker
169,663
Deborah Grimaldi
Grimaldi Appraisal Services - Cranston, RI
(401) 837-9633

Hi James,

Hello in beautiful Colorado, I hope to visit soon. I heard there are many good deals in Teluride this time of year.

Jun 12, 2012 05:29 AM #6
Rainer
1,750
John Smith

The review on the real estate market has revealed that the market will rise in the coming two years. A must read for people.

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Res Course

Sep 03, 2012 05:57 PM #7
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