The Real Estate Market in October 2012
Real Estate Market in October 2012
Although it is slow, the real estate market seems to be showing some signs of continued improvement. Earlier in October 2012, the Commerce Department made an announcement that many areas of the market seem to be crawling slowly upwards and other areas are showing much more rapid growth. One of the primary indicators which are examined to determine the sentiment of the market in the current economy is housing starts. Housing starts are reportedly up by about 15% in October 2012. The housing starts are up a marked 34.8% when compared to October of the previous year. Housing starts on the rise are a clear indicator that homebuilders are certain that the real estate market is gaining momentum and becoming healthier. When houses are being prepared to be placed on the market obtaining an accurate property appraisal is a must. This will ensure that they are priced according to the current fair market value.
Why the Housing Market Increase?
Many readers may be wondering what is helping boost the housing market. One factor has been that in the decline of housing prices new buyers were encouraged to make purchases. Another reason can be family units needing to resize because of a rapid population growth. Employment is slowly recovering and this can help drive the need for additional housing. These can all be key factors in helping the market continue in recovery mode. Another very important player in the housing recovery is the Federal Reserve which has taken the initiative to intervene by lowering mortgage rates which are at an all time low. This helps home buyers save a bundle on financing.
Keeping it in Perspective
Even though we are witnessing a slow come back in the housing market, it is very important to keep it in a healthy perspective. The increases that are being experienced are still very far below the statistics that existed before the real estate bubble started to get larger in the late ‘90s. These increases are a long shot from a full recovery, but they are still beneficial for the economy in general. These increases may also be reflected in other areas such as job growth as well as spending which crosses over into other segments of the economy. Most of today’s economists are very optimistic about the future of the economy and feel like it will continue improving further into 2013.
How are the Property Appraiser and the Market Related?
Property appraisals are very important to the housing market. Market trends are very important and it is essential that property appraisal professionals closely monitor these trends. When an expert appraiser such as Abbe Edelman evaluates a home it is imperative that it be given a valuation which coincides with the most current market trends. The fluctuations of the market are reflected in home prices and vice versa. One of the things that a property appraiser considers are similar homes that are currently available on the market. They may also look at other key aspects of the home such as the neighborhood it is in. The final analysis must be one that is neither underestimated nor over inflated so that there is no disruption of the real estate market or financial institutions. A home owner needs to be able to purchase a home which the lending institution is comfortable financing. They must be able to ensure that they will not experience a substantial loss if the buyer fails to follow through on the loan payments.
Positive or Negative Impact on Financial Institutions
As the slow recovery of the real estate market has begun one may ask if this is good or bad for banks and other lending institutions. Larger banks such as JP Morgan and Wells Fargo are faring well and both report a rather significant increase in their profits. Smaller banks are still struggling to survive because of former deals which tend to weigh them down. The Federal Reserve’s effort to help boost the economy seems to be working overall as some of the other smaller banks are increasing their mortgages. It is taking a little longer for smaller banks to feel the effect of the recovery, but overall they are all beginning to improve a little at a time.
Why the Housing Market Increase?
Many readers may be wondering what is helping boost the housing market. One factor has been that in the decline of housing prices new buyers were encouraged to make purchases. Another reason can be family units needing to resize because of a rapid population growth. Employment is slowly recovering and this can help drive the need for additional housing. These can all be key factors in helping the market continue in recovery mode. Another very important player in the housing recovery is the Federal Reserve which has taken the initiative to intervene by lowering mortgage rates which are at an all time low. This helps home buyers save a bundle on financing.
Keeping it in Perspective
Even though we are witnessing a slow come back in the housing market, it is very important to keep it in a healthy perspective. The increases that are being experienced are still very far below the statistics that existed before the real estate bubble started to get larger in the late ‘90s. These increases are a long shot from a full recovery, but they are still beneficial for the economy in general. These increases may also be reflected in other areas such as job growth as well as spending which crosses over into other segments of the economy. Most of today’s economists are very optimistic about the future of the economy and feel like it will continue improving further into 2013.
How are the Property Appraiser and the Market Related?
Property appraisals are very important to the housing market. Market trends are very important and it is essential that property appraisal professionals closely monitor these trends. When an expert appraiser such as Abbe Edelman evaluates a home it is imperative that it be given a valuation which coincides with the most current market trends. The fluctuations of the market are reflected in home prices and vice versa. One of the things that a property appraiser considers are similar homes that are currently available on the market. They may also look at other key aspects of the home such as the neighborhood it is in. The final analysis must be one that is neither underestimated nor over inflated so that there is no disruption of the real estate market or financial institutions. A home owner needs to be able to purchase a home which the lending institution is comfortable financing. They must be able to ensure that they will not experience a substantial loss if the buyer fails to follow through on the loan payments.
Positive or Negative Impact on Financial Institutions
As the slow recovery of the real estate market has begun one may ask if this is good or bad for banks and other lending institutions. Larger banks such as JP Morgan and Wells Fargo are faring well and both report a rather significant increase in their profits. Smaller banks are still struggling to survive because of former deals which tend to weigh them down. The Federal Reserve’s effort to help boost the economy seems to be working overall as some of the other smaller banks are increasing their mortgages. It is taking a little longer for smaller banks to feel the effect of the recovery, but overall they are all beginning to improve a little at a time.