The real estate market in 2014 will offer multiple business opportunities for Realtors, commercial buyers, and investors. Investors may may have to accept the reality that the wonderful bargains that were available during the height of the recession are largely gone; but that doesn’t mean prices have returned to their 2007 peaks.
There are still good deals to be had for buyers who are patient and smart; they just may be harder to find. Real estate agents should cheer the news that depressed prices are no longer driving down their commissions; they can probably expect to close many more sales in 2014, if they play their cards right.
So far, however, commercial property sales continue lag behind residential deals, although there’s a possibility that might improve by the end of 2014.
How investors can adapt in the current environment
The back inventory of foreclosed homes has significantly decreased, which has caused home prices to rise in regions where they have been depressed for the past few years. Fewer distressed owners means fewer short sales, so investors have to work harder to spot houses that offer the potential for a big profit.
There will probably be fewer-fixer uppers on the market in 2014, but easier lending rules should still provide enough incentive for investors to compete for the ones that do show up on with a sales tag on them. Some areas across the country have been slower to recover than others, and that offers investors a chance to capitalize on lower prices, as long as they’re not tied to a specific state.
Good news for Realtors, home buyers, and businesses
Aspiring homeowners who have been waiting in the wings may finally be assured that the real estate market is headed into positive territory. This will likely raise people’s motivation to do home improvement projects, sell, and upgrade to a new home.
Realtors will have an inventory of higher-quality homes to sell and more residential home buyers looking to buy, once they get rid of their old house. Economic activity in any area of the real estate market will create business not only for Realtors, but also the businesses that support this industry.
Landscapers and construction services should expect to see a welcome uptick in business in 2014.
Commercial property sales may remain sluggish
Businesses know that it’s cheaper to buy a commercial property than to lease one. With low down payments and a less restrictive lending climate, that tide may turn in 2014, but it’s too soon to know for certain.
This sector of the real estate market always tends to lag behind the others, but it catches up eventually. Until that happens, businesses can play it safe by leasing in areas that might have been beyond their budget in years past.
If the real estate market continues to improve at the same rate this year that it did in 2013, then by 2015 all those deals could disappear. Savvy businesses might decide to jump on opportunities to buy if they see any significant shifts in 2014.
Originally posted on March 4, 2014 @ 11:23 am