About 2012 and Real Estate

About 2012 and Real Estate

Posted in the Real Estate Forum

Turkey Property

Istanbul, Turkey

#1 Jan 7, 2012
I invite everyone to share own thoughts related to the future of real estate market in 2012. As to economic points, 2012 looks that will not be easy for agents in 2012 but we think different. And you?
www.propertyturkeysale.com
Bubble Still Popping

Whittier, CA

#2 Jan 7, 2012
Although certain real estate indices have shown an uptick at the beginning of 2012, this is still due to government interference and being paid for by tax payers. Houses are only selling because of low interest rates. Rates are low because the government is the only entity buying mortgages. Private money is staying away from investing in mortgages. The government is enacting policies that are essentially allowing Fannie Mae and Freddie Mac to support buying high risk loans. When private money gets back in the game, rates will go up, prices will finally go down to realistic levels. The real estate market will normalize as lenders will actually expect buyers to have a sizable down payment and incomes to support their loans. Banks are still holding back on releasing all that "shadow inventory" (foreclosed homes not on the market). 2012 will begin to see an uptick in this inventory coming to market, resulting in lower prices yet again. But because it's an election year, rates will stay down to support higher prices. Until the median sold price of homes is connected to the median local area incomes (price of home should be 3 times local medial household incomes), then prices will continue to fall. Real estate professionals will do what they can to avoid this fact and make sure buyers also ignorant of this connection in order to line their pockets.
Bubble Still Popping

Whittier, CA

#3 Jan 7, 2012
Best analysis of the future of real estate can be found at: http://www.doctorhousingbubble.com/

It's painful to accept, but the truth is that many areas of california still have bubble prices...but buyers are only looking at low interest rates and jumping in because real estate agents tell them "it's a good time to buy." Many are buying with 3.5% down FHA loans. As prices continue to drop, these buyers will be upside down by the end of 2012.
Real Esttate in 2012

Madurai, India

#5 Jan 9, 2012
The real estate market - both consumers and companies - lived through interesting times in 2011. Relentless rise in property and interest rates, controversies over land acquisition, the landmark Noida Extension court judgment and, to top it all, the various reform proposals, made for a heady cocktail. Because of the prevailing uncertainties on the global market and the likelihood of further interest rate hikes by the RBI in the early part of 2012, sentiments on the residential market will remain cautious over the short term. The absorption rate meaning the ratio of sales over inventory in the market is likely to be low, and the incidence of new launches will decline. Rise in capital values will be marginal because of low sales

Since: Nov 11

Location hidden

#6 Jan 9, 2012
The real estate market - both consumers and companies - lived through interesting times in 2011. Relentless rise in property and interest rates, controversies over land acquisition, the landmark Noida Extension court judgment and, to top it all, the various reform proposals, made for a heady cocktail. Because of the prevailing uncertainties on the global market and the likelihood of further interest rate hikes by the RBI in the early part of 2012, sentiments on the residential market will remain cautious over the short term. The absorption rate meaning the ratio of sales over inventory in the market is likely to be low, and the incidence of new launches will decline. Rise in capital values will be marginal because of low sales

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