Postponement of Key Real Estate Developments is not necessarily a Bad Sign for the Downtown Condo Market
As a condo owner who is looking to sell our home, I am now appreciating how condo sellers have felt during the past year. Real estate is an investment that doesn’t respond to market conditions as quickly as other investments do. By the time industry analysts and real estate investors determine that the market has shifted, it’s often too late to respond to market conditions.
What do delayed and cancelled projects mean to you?
First of all, the fact developers are taking this action comes as no surprise. The downtown market was becoming at risk of being overbuilt during this period of softer economic activity, and developers are merely reacting to existing market conditions.
The tightening of the supply is good for real estate. This means that the industry has begun to recover which means we should be seeing a steady increase in housing prices
What this news means for sellers
If you're a future seller, it's good news that that supply and demand will be matched in the intermediate- to long-term, which will benefit the value of your home or condo.
And if you're a buyer, this is good news for a couple reasons:
1) This signals that demand and supply will come into greater balance in the next year, which means now might be the time to consider shopping for values.
Therefore, if you’re a potential buyer, I would recommend that you act this spring or summer at the latest. Many analysts predict that the first quarter of 2008 will reflect the same results as last year. However, analysts are predicting that home
sales will begin to increase later in the year. Don’t pay too much for your next home as you wait for the market to shift back in the seller’s favor.
2) This is also good news for buyers because the market will be slowly improving.
Many buyers felt reluctant to invest in real estate because they didn’t know how much further values would decline.
Please contact me at (414) 412-7980 or e-mail at
dray@shorewest.com if you have any questions or concerns regarding the current market conditions.
-----
Labels: Real Estate
0 Comments:
Post a Comment
<< Home