I read all of these exciting predictions and I truly hope they are correct. The Real Estate market thrives upon our country’s economy.
Re-sales still take a back seat to new homes. In recent years the millenniums (not a new breed, just our kids) have moved back in with mom and dad. Others have found shared housing (mostly rentals). The optimistic predictions are that these millenniums will be in the market to buy homes as they secure better jobs and earn more money. My question about this line of reasoning is simple. Higher salaries will be spent on higher food prices. As the economy returns to healthy, if it does, it follows that goods of all kinds will be more expensive. How else will the larger salaries be sustained? Also, we are expecting interest rates to begin to rise at the end of 2015, if not before.
It is expected that the housing market will be back to 2009 rates in the energy producing states. The other parts of our country might well bottom out 75% below. Single family homes are primarily the rock upon which our country is built.
Throughout our country there is a new trend apparent by homeowners, it is called remodeling. Now this is an activity that creates an investment in your property which might one day be returned. Remodeling also helps the job market. In my neighborhood four homes have had an interior “face lift”. It is good for the buildings and good for the attitude of the owners. Shiny new kitchens with shiny new appliances and granite counter tops and equally exotic bathrooms are being introduced into these homes. It is also a “feel good” happening. Eventually these expenses will pay for itself in a re-sale.
I wish I could be enthusiastic about our economy and the future of housing. I would love to be wrong in my pessimism. Check me out in 2017