There’s a whole bunch of forecasts around for the US real estate market for 2012 and beyond, but how realistic are they? As the year draws to an end it is normal for forecasters, armchair commentators and real estate agents alike all to put forward their opinions on what is happening in the future. However the real indicator of the future is past performance – looked at through the events of the very recent past, being the previous year – 2011.
You can’t possibly talk about 2011 with wholehearted enthusiasm. Sure there were upsides for some in the industry and in property prices in some areas throughout the year, however all in all the industry was unhappy. There were, however, some positive events that give great hope for the coming year.
The driving factors behind the 2012 real estate forecast we previously made was largely thanks to economic indicators showing improvement. The start of the turnaround in the real estate industry came when the Federal Reserve froze mortgage rates for a period of two year, providing certainty for owner occupiers and investors alike. The other major event which impacts on what the future may hold for real estate prices is the November 2011 unemployment data announcement.
The announcement in early December that the US unemployment rate in November 2011 was the lowest in two and a half years was a great boost to the nationwide economic outlook. This naturally extends to the real estate market, as people who had jobs become eligible for mortgages from traditional and private mortgage lenders – therefore fuelling growth in the market and an upward surge in prices as demand grows.
While 2011 started in a negative environment for those in real estate, the same cannot be said for the end of the year. A review of the year in real estate will show that it was a turnaround year. The new year will prove to be a great year for real estate, where people who own property already will be counting their capital gains and watching the prices rise. Of course as prices go up, there are others who become priced out of the real estate market – so for these people it is prudent to look at their finances now and assess when and where to buy into the market.
Those who work in the industry are also bound to notice the upturn in the cycle in the market, which will come as a great relief, especially to those who rely on commissions to get by. Overall though, it’s a great time to look into how to become a real estate agent in your state and look at getting your license – the year in real estate in 2012 will be the start of a good long road of profit and positivity in the real estate industry… and it’s about time too!