In the past two years, the collapse in real estate prices were at an incredible rate. How many struggle to ensure their credit is lower and work with a high proportion of the debt accumulated as a result of second mortgages, home equity loans, to the south prime mortgages and other forms of debt. Now that the mortgage on one of the lowest in history, many are interested in whether the time is now for real estate. Commercial real estate in one of four courses, including: extension, balance, and reduce absorption. Currently, the market is changing in a cycle of reduced absorption of fuel from the historically low mortgage rates, FHA favorable conditions for long-term financing, and many large investors to invest in the long run.
With respect to residential property, then many of the housing market is hot, when in the sense that prices in 2006. For the first time in the country, along with favorable interest rates and mortgage finance, which includes some of unsold homes at very reasonable rates on mortgages. In the long run you will buy in these markets, significant price increases on their return to normal market conditions. Especially when you consider that housing prices were on average 8.6% a year after the Second World War. In the medium term, the incentives for Washington, which includes a $ 8,000.00 credit for the first time in housing and efforts to eradicate the bad credit mortgages on the books of many financial institutions should help stabilize the mortgage rates and an increase in the total amount of loans provided by various financial institutions. This is encouraging, are historical examples where this kind of mass action, the government allowed property prices to some good examples: 1933. Deep in the Great Depression in the house were in an airplane, even faster than before. Since the New Deal legislation had created the first public agency to help people to avoid foreclosure and stay in his house called the Federal Housing (FHA). In a few years, FHA would be a prerequisite for ending the mortgage and real estate market that the country now.
Commercial Real Estate, on the other hand slower target housing, the demand for this type of real estate, as for what happens in a residential area. One reason is that many companies tend to wait until the economy has a full recovery before you commit to buy commercial real estate or thinking of a creditor for the purchase of assets. While the price may still be many problems in the short term, medium term is to look at market conditions is the change of absorption. This means that within a few years, take stock of the work of its withdrawal from the market. Long-term investors who invest in these types of assets, largely rewarded. A good example occurred in 1982. With a serious recession in the country has changed since the Great Depression of the commercial real estate at the time was simply to do with the terrible job and inventory hanging over the market. Over the next five years, prices began to steadily improve the background for the real estate prices in many cities hit all time high at the moment, in 1987.
Despite the fact that many have heard of the real estate market is beginning signs of entries in the inventory to date. Some of them are low mortgage rates, favorable conditions for investment speculators, as well as first time buyers, as well as the possibility of refinancing at some of the best loans for many years. While such a positive role in the turn around in the market that will take time for markets with excess supply at the end of creating a stable environment. Those who buy actively in these difficult circumstances in which they have a longer term will be rewarded for their patience and vision, using weaknesses in the current market conditions, while others are afraid.
Lee is now time for the real potential?
Labels: Investment