I received an email announcement today discussing that many analysts think the real estate market - as a whole (remember real estate is local, local, local) has touched down at the bottom.
Per a forecast by Fiserv, market watchers sees an increase in prices rising nearly 4 percent per year for the next five years. The greatest gains are exptected to be those areas hardest hit, such as Phoenix and Las Vegas.
Housings rising affordability mixed with falling inventories of for-sale homes are the main factors driving the expected price increases, according to Fiserv.
Initially, investors are expected to help drive most of this price increase, and certainly that is true in my own business right now, where clients are considering the value of real estate as an investment. In our area where short sales and foreclosures have displaced families the corresponding rental market is on the rise.
Owning a rental property can be a particularly good investment right now.
The subsequent drivers of the market uptake will be first-time and trade-up buyers as they re-emerge in bigger numbers to the market.