Sagebrush • Recovery in real estate prices

Signs that a recovery in real estate prices is on the way.

'10 |Lender Foreclosure Auction Decline when other factors get slowed down Real estate agents have been hunting for new houses in recent past months as reported by a source, but still according to the data, closings have gone down by double digits as compared to the figures a year ago. For example, sales of Long Island except the North Fork and the Hamptons , for January, February and March this year have gone down 18% as compared to the last year, according to the survey done by a Manhattan-based evaluator, Miller Samuel.

But it was expected that sales will fall as compared to the past boom years. But the question which arises now is that when this housing market will get ‘back to normal’? The answers to this question are not enough clear. First, there is no easy definition for ‘back to normal’. According to Jonathan Miller, chief executive officer of an appraisal firm ‘normal’ could be 6 years back when the loan-giving industries gave away extraordinary and high-cost loans especially to those people who actually could not afford to give them back easily.

If we take those as the normal days and compare the sales data six years ago and the current year’s housing sales, then the indication of whether the recovery of real estate market is happening can be found. Secondly, to find out if there’s actually a recovery, at least two to three quarters of data is required, Miller said. This is partially because house hunting can be considered as a seasonal activity. Like the present season, in springs too, there is a rise in open house visits and sales. This takes place every year when the probable buyers tends to close the deal as they want to move before their children’s school starts or before the arrival of winters.

Thirdly, when other factors get slowed down or when there is a change in the sales percentage, that might be an indicator of recovery, Miller said. The foundation line is that people of US might have to wait for a little more time or until the end of this year to see the signs of recovery in real estate. Signs that a recovery in realestate prices is on the way. Factors influencing Real estate prices. '09 |Income levels are considered how much loan a family can handle The two types of variables which affect residential real estate prices are macro forces and micro forces. Micro forces include state and municipal zoning, neighborhood features (like quality of schools, hospitals), local economic strength, and the condition of the property itself. Macro forces include economic strength (the business cycle), mortgage interest rates, federal taxes and demographics.

Factors influencing real estate prices.