Real Estate Market Update for Fall 2007 and Forecast 2008

Cyclic real estate market

Anyone experienced in real estate investing know that the market goes up and down, but the trend is still upwards, if you hold on long enough. Only the first instance an optimist could believe that the frenzied pace of recent years, could continue. It was untenable, and all are connected with the business knew that in their heart-a heart.

Speculators Properties This means that the market trend will still be up after the fall of 2007, but it also means that many speculators are quite simply the money during the boom times in the last few years will be shaken. It is also proof that America's demand and supply system works.

the rest of 2007 will still be slower than what most investors would like, and there are forecasters who predict a similar situation in the entire 2008th However, the overall market is expected to recover in 2009, although no one foresees a return to the dizzying pace of the recent past.

Areas with market declines

of the hardest hit by the return of more normal situation in the market are also the hottest markets during the run-up: Southern California, Las Vegas, and Florida, which experienced the biggest drop in house prices in 2007. Texas, who is also a hotbed of growth, also showed some significant price declines during this period.

With the nation's home sales down overall, sales of new houses have also begun to slow. In fact, the National Association of Home Builders (NAHB) predicts a drop of more than 13%, which will be the biggest decline since 1991 (15 %).

There is good news buried among these figures, however. With the decrease in new houses, the market will finally have a chance to absorb a lot of empty houses left over from the boom times. Once these homes are sold, the supply and demand cycle will begin again in a shifting emphasis back toward the building of new homes to fill the growing demand from customers.

Investors Look for a stable economy

Although the market will regain its white hot status in the near future, there are some areas in the country where real estate investors can get relatively quickly when the market begins to recover. strategy is to look for areas that have seen home prices plummet, but then the local economy remain stable, the competition rates are low, a price-to-income ratios are reasonable. Such areas would include the hard hit areas like Orlando, Las Vegas, Phoenix i.