Positive Trends Expected in 2012 - Real Estate and Technology News for Agents, Broker

Positive Trends Expected in 2012

All the signs are there, says National Association of REALTORS® Chief Economist Lawrence Yun. "More jobs, rising rents, a rising stock market, and continuing high affordability conditions are combining to get more people into the market."

In the Residential Market, the bargains might not be as good this year, but conditions remain favorable for buyers. NAR predicts a 5 percent increase in home sales this year.

REALTOR® Magazine asked its readers to predict where the best source of business will be in 2012.

These three areas may be good places to focus on in the coming year:

1. International Investors may be a new source of income. With the debt crises in Greece, Spain, Italy and other countries, foreign buyers continue to stream steadily into the U.S.

"NAR's 2011 Profile of International Home Buying Activity shows foreign households bought $82 billion worth of residential real estate last year, up from $66 billion in 2010." states the article.

2. Distressed Inventory: "Affordable housing in inner-ring suburbs or center city areas may be real estate's sweet spot in 2012," says Brian Block, broker-associate with RE/MAX Allegiance in Virginia, "because buyers today aren't looking just for bargains, they're looking for convenience and lifestyle amenities."

3. Rental Property: With homeownership still a distant dream for many Americans, more people are renting, vacancies are down and rents are on the rise in most areas. "That's why many real estate companies have shifted their business model to include rental and property management." says the article.

Real estate agent Bill Bloomberg is now focusing on high-end rentals, working with both owners and tenants. He feels this has helped him retain clients.

"If a listing isn't selling, it's usually because of price. However, most owners are going to try to switch to another agent first to see if that will make a difference," Bloomberg says. "Presenting an option such as renting can prevent that from happening."

This also attracts renters to a nicer neighborhood that might currently be beyond their reach but might be something they might be able to afford later when the economy improves.

"Today's renters could well become buyers of the future." states the article, "The majority of renters (63 percent) say they are at least somewhat likely to purchase a home in the future. Among them, young adults (age 18 to 24) have the strongest aspirations for home ownership, according to an NAR survey of 3,793 adults conducted by Harris Interactive and released in January 2011."

Read the full article at REALTOR® Magazine.

photo credit: tompagenet