Economists Bullish On Housing Recovery
Economists predict a steady housing recovery through 2016.
A
quarterly survey of more than 100 economists shows growing optimism for
the real estate market when it comes to housing prices. The majority of
the economists surveyed say they expect home prices to steadily
increase for the next four years.
"This is further evidence that we're seeing a true recovery in the
housing market," says Stan Humphries, Zillow's chief economist. "Not
since mid-2010—in the midst of the homebuyer tax credits—have we seen
this group so bullish on housing. It's refreshing to see this optimism
at a time when the market seems to be making an organic recovery, in the
absence of an artificial stimulant like the tax credits."
Rising home prices haven’t deterred investors from
the housing market, according to a new survey by real estate-centered
companies BiggerPockets.com and Memphis Invest. In fact, nearly 40
percent of real estate investors say they plan to purchase more
properties over the next 12 months than they did last year. Twenty-six
percent say they plan to buy as many as they did last year, according to
the survey.
Investors have made up a big part of the housing market in recent months. Investors bought 1.23 million homes last year—a nearly 65 percent increase over the 749,000 they purchased in 2010, according to the National Association of REALTORS®.
"Though housing markets are changing across the nation, investors are still seeing great opportunities,” says Joshua Dorkin, CEO of BiggerPockets.com, a real estate investing social network. “Hundreds of thousands of foreclosures and short sales are coming to market and rents are continuing to improve in most markets, creating a positive environment for the nation's 28.1 million residential real estate investors. They will certainly continue to be major players in the nation's housing economy for the foreseeable future.”
Investors are also ready to take a bigger bite out of the market. A survey found investors spent $9.2 billion last year to rehabilitate the foreclosures they purchased.
The survey puts some hard numbers behind the contribution that investors are making toward not only improving neighborhoods and fighting blight, but also the toward driving the economy. Investors are purchasing homes that in some cases sit for months and add a drag on local home prices.
This survey shows that those investors are driving their local economies by spending billions in repair costs with local electricians, plumbers, flooring companies and laborers just to name a few.
The survey also found that investors would buy even more homes if interest rates were even lower; there were additional tax incentives for purchasing, rehabbing and renovating investment properties and if lenders eliminated their limits on loan amounts.
That all being said, there has never been a better time to buy!
Investors have made up a big part of the housing market in recent months. Investors bought 1.23 million homes last year—a nearly 65 percent increase over the 749,000 they purchased in 2010, according to the National Association of REALTORS®.
"Though housing markets are changing across the nation, investors are still seeing great opportunities,” says Joshua Dorkin, CEO of BiggerPockets.com, a real estate investing social network. “Hundreds of thousands of foreclosures and short sales are coming to market and rents are continuing to improve in most markets, creating a positive environment for the nation's 28.1 million residential real estate investors. They will certainly continue to be major players in the nation's housing economy for the foreseeable future.”
Investors are also ready to take a bigger bite out of the market. A survey found investors spent $9.2 billion last year to rehabilitate the foreclosures they purchased.
The survey puts some hard numbers behind the contribution that investors are making toward not only improving neighborhoods and fighting blight, but also the toward driving the economy. Investors are purchasing homes that in some cases sit for months and add a drag on local home prices.
This survey shows that those investors are driving their local economies by spending billions in repair costs with local electricians, plumbers, flooring companies and laborers just to name a few.
The survey also found that investors would buy even more homes if interest rates were even lower; there were additional tax incentives for purchasing, rehabbing and renovating investment properties and if lenders eliminated their limits on loan amounts.
That all being said, there has never been a better time to buy!
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