Okay. It’s been an interesting 12 months with its fair share of economic triage. There’s been speculation about everything from employment, inflation, the price of gold, interest rates and the value of real estate which many would say is where the whole mess started.
Of course the banks are in the cross-hairs for approving loans with repayments that could never be sustained. But the media who crucify them daily seem to overlook the millions of homeowners who took the plunge, bought and now own real estate they never could under current qualifying rules.
But I digress…
What does the next year hold for property owners? Will our investments, including the sacred roof over our heads, be worth more or less a year out from now? It seems the answer depends on where you are. Canada officially went into a recession and is out. The US went into a bigger recession and if you go state-by-state, many are still in one (unless you want an apartment in Manhattan which is ‘boomtown’ right now). Australia never officially went into a recession and prices are great in some areas and down in others depending on supply and demand. New Zealand just won the gong for being the most non corrupt country on the planet so needless to say everyone wants to live in the jewel of the South Pacific so prices are strong in major cities.
The US Government bailout looks to have worked, however the long term effect of this on the economy is unknown. Debt levels in the USA have never been anything like where they are today and we’re talking about a country spending more than one billion dollars a day fighting two wars. The strength of the US dollar and trending inflation are the two big question marks.
General economic views confirm we can look forward to slow and steady growth but I fear this gives false hope to property owners who really want to sell but are holding out for the next big boom. In fact, an increase in bank mortgage rates is usually followed by a softening in prices.
The best advice I can offer is to speak with your local real estate professional and get a solid local opinion. Every area and every market is different. Only your local pro knows. Click here to arrange a current market opinion with the recommended real estate professional in your area
Article By Ray Wood.
Founder & CEO of Bestagents Real Estate Group