The fact that the real estate industry is at a low point right now is not a secret. However, even Harvard has taken on the real estate market to analyze what is currently influencing and affecting the industry.
Home prices and sales in the real estate market have plummeted. In addition, foreclosure statistics are increasing dramatically and rates to secure a new mortgage are rising.
With the housing market looking so bleak, Harvard studies decided to see what factors impact future housing decisions. Most importantly, these Harvard studies want to see when the real estate market will improve as the industry has a strong impact on the overall economy.
The current real estate market has many home owners wondering, how can I sell my house, where are all the home buyers. When the real estate market takes a turn for the worst hundreds of thousands of home owners are stuck with a home they either can not afford or do not need.
For this reason Harvard has decided to study the real estate market and decipher, what will bring the real estate market back to life.
According to the latest study from the Joint Center for Housing Studies of Harvard University, the future is looking bright. The country is set to improve in the real estate sector in the next decade. Specifically, the demand for housing will help to offset the current problems in the industry.
The best news for the housing market is that the United States is growing. With an increase in population, the need for places to live will grow exponentially, helping to drive the need for more houses.
In addition, there are a variety of social trends that will help fuel future housing increases. People are getting married later in life and getting divorced more and more frequently, making the number of single person households increase.
In addition, there is a higher life expectancy for baby boomers and echo boomers. Finally, immigration will play a large role in the increase in housing demand with an annual projection of 1.2 million each year.
In other words, from 2010 to 2020, the number of households needing a home will increase on average by more than 1.4 million each year.
This increase in housing demand will play a critical role in improving the current real estate market. Once the effects of subprime mortgage rates and other housing impacts become steady again, the real estate market will see an increase in the industry due to these social factors and immigration.
However, before the good times in the real estate sector can begin, the number of unsold homes must decrease. The number of vacant homes currently available for sale rose 46 percent to a total of 2.12 million homes from 2005 to 2007.
These vacant homes have terrorized the existing real estate market, lowering prices and halting new construction. As of earlier this year, there was an 11 month supply of unsold new homes.
To compare, a six month supply is considered a buyers market and the 11 month statistic shows the deep increase in unsold homes currently on the market. With a reduction in supply, prices will again rise, interest rates will go down, employment will increase from construction and other related industries and consumer confidence will once again climb.
The factors that impact the real estate market are set to change our current dip. All we need now is time to bring about the social changes and immigration in order to see the housing market back on its feet again.
When this happens home owners will have a better change to sell their house fast for the price they need. Until then, if you are thinking how can I sell my house myself for a fair price, contact your local home buyer.