Real Estate Market upscale… The brighter side

Real Estate market is known for its volatility and sudden dip and rise factors in US. US Sub-prime is one of the major factor that made the whole affair of home buying –selling, a thing of nightmare till end of 2008. 2009 is being little hopeful as the conditions are getting improved gradually. To talk about the considerable jump in GDP (Gross Domestic product) in 2009 it was 5.7 percent where as economists predicted it to be 4.5 % growth rate. It means better sign and positive directions for real estate firms. There are market indicators which prove brighter side for property dealers also. Two home buyers tax credits and sudden upsurge of US economy are obviously the reason for all delight. Now buyers and sellers are happy again with their market exposure. Manufacturing sectors are adding faster improvement quotient to this positive flow.


Not even that on revival of US economy from debt of mortgage loans, the pending contracts has started bouncing back and providing enough boost for home sales. The pending homes that were under construction stage are getting sold now. In fact the percentages of such sales are 11 percent higher in December, 2009 than a year back. Tax credits for first time home buyer has been extended to $8000 and for existing home owners it is $6500. This broad exposure of credit facility is going to stimulate near about 2.4 million sales in 2010.Existing and old homes sales are getting speed up as evident from 27.2% increase in sales in the final quarter of 2009. The figure was 14% higher than previous year. Distressed properties are reducing with time as complications are getting sorted out gradually.


There is good news as the recent property builders, developers has started developing more projects and orders. As per reports orders are 45% higher than the last year and cancellation rate also dropped from 38% to 26 %, a marginal improvement al together. As the whole world was facing a terror of huge business loss and abolishment of small time players due to financial constraints, it is a shy of relief for these property firms. So builders are gradually gearing up for more variety, budget and luxurious style apartments, buildings and villas. Project conversion rates are also getting higher making many of the real estate agent’s dreams come true.


Local employment, household income, economic growth and demographic changes these are some factors that determine National PMI index for a country. In metropolitan markets the value of the apartments are increasing keeping risk factors of realtors much minimized. There is a certain parameter called Zillow index that determines the negative equity of home owners. Fortunately the average percentages of such equity are decreasing from 23 % previous year to 21.4 % in the forth quarter of 2009.


Mortgage rates are only 5% till now, which is always appreciable. There are signs of increment in this figure. If we compare this current rate with the rate in 1980’s when it was 18.19 percent, it can be guessed that market activity has still many ways to go ahead. The homes are easily available to own with such low mortgage rates. So if you have New Jersey condos for sale or in any other states in US, there is nothing to worry since market behavior is still favoring you all the way.


So here is the happy news in advance that anybody dealing with real estate, property development, agency business or brokering directions are open and positive too. Things are getting under control gradually.


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