Discussing about recent trends in house prices is nothing but the changing phase of real estate. The more the real estate market is changing the more it is affecting the price of houses. The Real estate sector has undergone an explosion in recent days. Say its Residential real estate, Commercial real estate, Retail real estate, Industrial real estate or even Investment, reports and gossips are widespread of market crashing. But along with these news there is also a simultaneous awareness of the real estate marketplace working moderately in its development and upsurge in the second half of the year 2007. This phenomenon is highly apparent through several financial indicators like stable rates, falling dollar, change in demographic trends, stock market enlargement.
The count of immigrants is increasing quickly in United States of America these days. It has been estimated that the rise of immigrants will reach at around twelve million of people by 2010 whereas it was only nine million in the year 1990. This phenomenon no doubt plays a major role in the real estate market. The increase of immigrants is escalating the demand for house possession at a very high rate and it is also estimated (by a recent survey by Harvard) that these immigrants will make up for approximately thirty percent of the market share by 2010. The most important part of this prediction would be the purchase power. An estimated 1.5 trillion dollar of currency shall be under this combine purchase power. It is also to be kept in mind that they might have frontage on for around 55% – 60% of the first time home buyers.
It has also been noticed that the first time home buyers are no more unaware of the market position while buying their house. The latest trend witnesses a change in attitude as they are getting more and more careful of their purchase assessments. To keep in pace the real estate representatives and brokers are required to take up more of a financial planner approach. The traditional real estate attitude shall work no longer and the appeal shall no doubt be more universal, institutional and professional. The complete knowledge and condensed response in time will help them survive in the market.
Technology too has a considerable role to play in the shifting trends in real estate in America. It is evident that the market set-up has been changing constantly with the advent of internet. People are taking help of various newly developed technology and their applications and are getting the free flow information on buying and selling out the properties. This is shifting the real estate market from its traditional process. Today people can surf the net for their house while their individual needs are met and the time and the cost of the broker is saved. Around 77% of the home buyers in USA surf through net to buy their dream house. The realtors have also united in this trend by providing free information online on their websites.
A shift has also been noticed in the real estate advertisement trend. Due to ample prior knowledge the consumers today have become less tolerant and anticipate the real estate agents to provide them with more than usual. If the consumers are not satisfied, they will surely move to other agents.
Another important factor is the condition of the home owners in certain regions. Socio-economic and more natural factors contribute to this pressure. Despite the fact that most parts of United States of America are observing a rise in real estate sector, people in New Orleans, Louisiana and Mississippi are under pressure to sell their home. The price of their home is reduced drastically due to the after effects of hurricane Katrina. Value of property insurance has consequently ascended high in these locales.