My Real Estate Market Predictions
Here are the main reasons why I believe that the real estate market will continue to do very well for at least the next ten years:
- Home prices will continue to rise because of moderate supply and increasing demand.
- With federal anti-inflation controls, mortgage rates are expected to remain in their present range or not much higher. An economist estimated that for every drop of one percent in the mortgage rate, an additional 250,000 households were able to purchase a home.
- Minorities, immigrants and grown baby boomer children are creating a major new demand for housing.
- Senior citizens are living longer and thus becoming more numerous, increasing the demand for vacation homes.
- Costs and red tape continue to be cut, removing much of the intimidation and delay in buying real estate.
- Mortgage loans come in increasing varieties, so much greater numbers of people can find a loan they qualify for.
- Buyer-friendly programs sponsored by the government, and private interests, are creating many new homebuyers.
- The United States population is expected to increase by five percent over the next decade, an addition of about fifteen million people to the population.
- The economy is showing signs of entering another long-lasting expansion.
- Americans have now discovered the real estate market as a viable alternative to the stock market. Things have changed, at least for the foreseeable future, if not forever.
