ActiveRain Members Loudly Proclaim: Real Estate Market Is Back!!
We wanted to add a few points to ponder before you get all excited about the housing market. We must pay attention to past mistakes and learn from them.
While it is wonderful to be positive you have to make sure it is sustainable and that prices don't jump artificially too high too fast.
I am very surprised that Miami is not on the infograph when Miami was the top city in price increases over the past two years. Miami, Wellington, Ft Lauderdale- the South Florida markets all were jumping back for a while now.
I got my real estate licence when Jimmy Carter was President. I am sure many of you were too young to remember that recession. But that means we worked through that housing recession, the recession of the 80's and the 90's and the great real estate bust of 2007.
About 6 months before the real estate bust happened Nestor was warning buyers, sellers, flippers, investors, developers- that the bust was coming. They all just laughed at him. How could he fortell the future??? It is called, MATH! There were mortgage brokers that even got mad at him for "ruining their business" by his warnings! Hmmm, look what happened. Nestor was right.
If you were not in real estate in 2007 then you may not know what a ground zero real estate crash looks like. There are lessons to learn from history. That is why we study history. But it seems that most people don't want to learn from the past.
Here is the problem:
The real estate prices in South Florida are rising by double digits. BUT Florida incomes have dropped by 14%. So if house prices rise at 21% but incomes drop by 14%- DO THE MATH! The housing market can not sustain those numbers. It is not being a pessimist, it is not the intent to rain on your parade it is more about making sure you are in the right marching band!
So while real estate agents may get excited about selling more houses and making more money if you are a REALTOR® then you also have some duties. As a citizen you have some duties. I don't know about you but I like to sleep well at night.
You're Getting Good at This
For the second year in a row, the ActiveRain community has put their collective knowledge to the test in order to predict how the real estate market will play out in the coming year. Last year, as a group, we collectively called the bottom of the market. All signs would suggest we nailed it!
This year, 2400 of you responded to the survey ActiveRain offered asking you what you expected real estate in your area to do in 2013. 84% of you expect real estate values and the number of transactions will increase in 2013. This number is staggering in many ways. I can't think of one thing where you would get this much agreement when taking the tempature of 2400 members of the real estate community.
Bullish on 2013
Last year, our members predicted that 1/3 of the markets in the country would see price declines. This year? Not a single market! As a group, our members expect every single major market in the US to see price increases in 2013. If you guys were a bull on the housing market, you would be Paul Bunyan's OX, babe.
Below is the infographic we put together based on the data from the survey. If you'd like the full report you can head over to RealEstate.com and get all the juicy details.
We would love if you would share this infographic in your blog. The national media has been jumping all over the doom and gloom of the real estate market for the last five (or has it been longer?) years. It's our responsibility as content creators to trumpet the return of the market.
This is Great News, Share It!
To that end, on Friday, March 22nd at 10am Pacific Time we are going to host a webinar that focuses on how to share this kind of real estate news with your sphere. How can you take advantage of all the great real estate news you are predicting will be headed our way in the foreseeable future? We'll talk about that if you'd like to join us. Click this link to get signed up for the webinar.
Enough about all that, here's the pretty pictures.......and for you data geeks, here's the more thorough breakdown.
(Click above for high resolution image)
In order to share this infographic on your blog you can use this piece of HTML code:
<p><a href="http://activerain.com/real-estate-is-back"><img src="http://activerain.com/pdf/RealEstateIsBack_bright_mm_600px.jpg" alt="" width="450" height="1200" /></a></p>
<p>Data provided by <a href="http://activerain.com/real-estate-is-back">ActiveRain,</a> the #1 social community for real estate professionals.</p>---
Keep Up In the Rain!
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