Real Estate Market Update for Fall 2007 and forecasts 2008

Cyclical real estate market

Anyone with experience in real estate investing knows that the market goes up and down, but the trend is always upward if you hold long enough. Only a first degree optimist could believe that the frenetic pace of recent years would continue. It 'was impossible, and all connected with the activities that they knew in their heart-of-hearts.

The real estate speculators means that the market trend is still upwards beyond the crisis of 2007, but it also means that many of the speculators who have made money fairly easy during the boom times of recent years will be shaken. It 'also proved that in America-and supply-demand system works.

The rest of 2007 will continue to be slower than most investors would like, and there are predictions that provide a similar situation throughout 2008. However, the overall market is expected to rebound in 2009, although no one expects a return to the dizzying pace of the recent past.

Areas with market declines

The places most affected by a return to more normal market were also the hottest markets during the run-up: Southern California, Las Vegas and Florida, who have experienced the largest declines in home prices in 2007. Texas, who was also a hotbed of growth, also showed some significant price declines in that period.

With the nation's home sales declined overall, sales of new homes have begun to slow. In fact, the National Association of Home Builders (NAHB) expected to decline slightly over 13%, which would be the biggest drop since 1991 (15%).

There is some good news buried in those figures, however. With the decline in new home construction, the market will finally have the ability to absorb many houses remained empty since the boom. After the houses were sold, the supply and demand cycle will kick in again, the focus shifted back towards the construction of new homes to fill a growing demand from buyers.

Investors looking for stable economies

Even if the market will not regain his glowing status in the near future, there are some areas of the country where real estate investors may be able to profit in a relatively short time, when the market begins to rebound. The strategy is to look for areas that have seen the collapse of housing prices, then even if local economies are still stable, vacancy rates are low, and the price-to-income ratios are reasonable. These areas include hard-hit areas, such as Orlando, Las Vegas and Phoenix .......