When is the Real Estate Rebound?
Author: Lisa Udybr
Source: ezinearticles.combr
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As a real estate agent I get asked the same question a lot, almost so much so I have a perfectly canned response, the question is; When is the real estate market going to rebound? I usually say something like, that is a great question, and if I new, I would probably be all over the news explaining to the masses when the market was going to rebound.
Unfortunately, just like you, I as well as everyone else in this mess doesnt have a clue when the market is going to turn around. The only thing we can do, is look at the trends of the past, and use them to gauge whats happening today.
What can the past tell us about the market today and where its going in the future? The past can tell us a lot. If you look at the early 90s, we had a small recession that brought the housing market down. The cause was a loss of jobs, which is also one of the main factors we are in the recession today. Millions of people have lost their jobs and without a job they cant pay their mortgages, which means more repossessions and foreclosures then usual. More inventory means less demand and prices start dropping, not to mention the lower priced foreclosures bringing down the market.
Okay, we know all of this, but how does that help us gauge a rebound in the real estate market? Its actually quite simple, the rebound will come when people have jobs. The reason the market rebounded in 1997 was because of the abundance of work in the market place. People with jobs have money, money creates a healthy economy, which creates buyer confidence, and is the key to turning around the housing market.
It doesnt matter how many incentives the government gives to buy, or how low interest rates are, if people dont have work, this recession is going to continue on its ugly trail. If you want to know when real estate is going to rebound, you need to keep your ear to the job market. When unemployment rates start to trickle down, people will start to get more confident, and that is the time when our real estate markets will start to rebound.
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pLisa Udy is a real estate agent with The Lisa Udy Team. If you live in Northern Utah, you can find a target=_new href=http://www.loganrealestateinutah.com/ rel=nofollowLogan Real Estate/a or a target=_new href=http://www.loganrealestateinutah.com/ rel=nofollowLogan Utah Homes/a on Lisas property website./pbr
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