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Real Estate, like anything else, has a pendulum swing. Politics, while not associated with real estate per se, has more of an obvious curve. We go for a few years voting for a type of candidate that might be supporting social programs, or like in today’s world, smaller government.

Real estate has the same basic change, although the time span is a lot longer. As my my older constituents point out we had this same sort of issue (with real estate) in the 80′s. It worked itself out, we went on for a decade or more with great increases and a great economy. And boom.. headed right back to where we were, in the thick of it.

Such conditions might not last long. Moody’s Analytics predicts that the number of distressed sales will begin to fall in 2013, and that prices will begin to edge upward then. Home building is at a virtual standstill, so the supply overhang isn’t likely to get much worse. Meanwhile, demographic indicators such as “household formation”—the number of new households each year—are on the rise, and promise to take a bite out of the glut in coming years.

Ruth Simon has some very good points in here, but the most meaningful in my mind, the market will get healthier and better. You can check it out for yourself HERE.

 

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