We are celebrating our 4th of July and many of us witnessed the sparkles in the night sky to remind us of our Country's birthday.
As with the Country's birthday real estate is now showing signs of sparkles as well.
Not with the dazzle of what we saw in the night sky on the 4th. It is somewhat more mute in the market place but the amber's are there and when this side-way activity is complete there will a significant acceleration upward in home prices.
Items contributing to this price acceleration will include:
1. Of course there is the pent up demand that will make itself felt.
2. Cost faced by sellers to make their single family homes "green".
On the surface it would seem that sellers will have to eat this added cost. But if Economics 101 taught us anything eventually these cost will passed through to the buyer's thereby increasing prices.
How "green" green will be is any-one's guess but in California one could expect that seismic upgrades may be required; perhaps solar panels and independent electric home grids; dual-pane windows; and who knows what else the Federal and State bodies will include.
What will probably happen is what I mentioned a number of years ago....we will have a two class society.....one owning property and those who do not and cannot because of the cost.
There most certainly will be an outcry for affordable housing but the conditions being applied will go counter to what is intended.
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