Housing Issues In Property 2013

"Housing Issues In Property 2013"The normal vacancy rates in residential properties (houses and apartments are not on the rental market), is approximately 1.5 percent nationally. Our high was three percent, but we are up 2.1 percent. Rent is usually around 7-8 percent vacant. (Local standards may be higher or lower.) We have reached a record high of 11 percent of the vacancies for the holidays a few years ago, but they have improved to 8.6 percent last observation. Despite recent progress, we still have too many homes for the current level of demand.The real estate market improves modestly in 2013, but make no mistake this for a tree. The result of the activity and prices will be a relief, but leaves many homeowners still underwater. The usual way to discuss housing issues are misleading. Foreclosures, short sales, inventory, shadow, upside down mortgages are all symptoms. The fundamental problem we have is an oversupply of housing. The improvement we’ve recently the results of a simple phenomenon seen: the construction of new homes was not less than the growth in demand.

Last year the total number of units (single-family plus the number of dwellings) was just over 600,000. This year, probably built about 750,000 units. At the top of the building, which in 2005 was 2.5 million units built. We have approximately 1.5 million new units a year to meet the growing population, the desire to vacation and demolition of old units to meet. This is a soft song. The annual real need may be 1.4 million or 1.6 million, but has never been, nor 2.500.000.600.000. Our latest undercurrent was the biggest help for housing recovery. It was not as fast as might be expected (faster actually was not), because the economic downturn has slowed the growth in population and a lower birth rate and migration blurring abroad. Moreover, people have the fact that we have fewer dwellings per person, such as adult children move back with their parents.

Slow recovery in the labor market means slow movement of children away from their family home, but even if slowly, the movement in the right direction. It is still too early for housing starts to return to normal, and we certainly do not see above normal performance anytime soon. But 2013 will be probably more than one million households in total construction. This will be a significant percentage of sales compared to 2012, but do not forget that an increase of 30 percent from the palm of your nose is not too far from the palm of your nose. House prices will rise in 2013, but only slightly. The latest data shows that the average national house prices have risen by about five percent per year. It is too optimistic a projection for the coming years, but because there are many more homeowners diver who sell when they do not have the money to create the layout.

This increase in the number of homes on the market will limit price increases. Cyclical Bikes aside, there are many reasons for house prices to appreciate by more than three percent above inflation, or about five percent in the current environment. Periodic booms and busts push profits above or below trend, and a change in tax law that favors or disfavors root cause once price changes. Ten percent appreciation expectations are fantasy in the long term. Construction companies home industry should prepare for an increase in sales comfortable in 2013, the usual boom-time challenges involve: finding good employees by ensuring a sufficient supply of products from suppliers, working capital they need to grow production guarantee.

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    August 2016
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