Investors Interested in Real Estate Market Once More
Builders and Realtors® who follow housing and real estate market trends practically on a weekly basis find it not surprising that investors who previously held large portfolios of real estate stocks are beginning to once again take an interest in the industry. Since the stock market has been on a psychological and knee-jerk reaction roller coaster since the catastrophic collapse of the real estate market in 2008, investors have taken a cautious and long look at any real estate investments – until now. MarketWatch reports that investors are finding three very good reasons to either hold onto their real estate investments or to put their money to solid national builders and real estate companies which became more efficient and profitable throughout the Recession.
Reasons 1 & 2 – Economic Growth Stimulates Jobs Which Gives Housing a Stable Foundation Not to Crash Again
Investors are beginning to see a realistic recovery in the employment rates, including the percentage of people who “dropped out” of the job search market because they gave up ever finding a job. Employment rates are the beginning of the process of stimulating the economy because once people have jobs, they can start to make purchases which will increase the GDP. With the increase of employment and economic growth through the GDP, there is nowhere for the housing market to go but up. New home sales were up 17% over 2013’s numbers and new home starts were up over 5% over the same period of time. Growth before 2013, since the end of 2011 has been nothing but an upward trend. With a stabilizing economy, investors don’t see the real estate market being able to crash once again.
Reason #3
With the advent of jobs and a stronger labor force making money, America’s households can take on and also manage debt. Debt may not seem like a good thing, but when it comes to large purchases: houses, cars, furniture, boats, etc., the only way to purchase these things as an average low to middle-class American is to take on debt. With no proof of income or no proof of long-term, stable income and tightened credit restrictions, lenders have been unable to hand out loans, and Americans have not been able to make big purchases. Job growth stimulates good credit and loan feasibility which allows people to be able to make new home or resale home purchases.
Builders and developers have noticed that there are many people “off of the fence,” actively looking to make a purchase of either a new home for sale or a lot for sale in order to build the custom home of their dream. If you are interested in buying a home or lot in St. Tammany Parish in Madisonville, consider Bedico Creek Preserve, a Conservation, Master Planned Community on the Northshore with multiple Neighborhoods and lots sizes from which to choose. Call 985-845-4200 or E-mail [email protected] For More Information.
