With home affordability at it’s highest level in 30 years, some real estate analysts believe the housing recovery is not only dead ahead but already underway. While an old market maxim says don’t try to pick bottoms because it can always go lower, our property specialists at AIPIS think it’s a good time for your customers interested in buying to start paying attention.
We can’t call it the beginning of an up cycle until three factors present themselves – demand, supply, and investment. Right now, job growth is slowly coming back and renters are beginning to stick their heads out of the bunker and take a look around at buying conditions. New construction is at an all-time low and likely to remain that way until the glut of bank foreclosures are bought.
Now would be an excellent time to start the gentle process of educating your mailing list about the housing recovery and the prospect of investing in income properties. If it does turn out that this is the beginning of the next up cycle in real estate, those who take advantage of today’s low prices will set themselves up to make handsome profits in the years to come. This is how fortunes are made in America. Over the next 10-15 years, there will certainly be new millionaires created by savvy real estate investment choices. How thankful will your list be if you are the one to show them the way to wean themselves from their sometimes uninspiring Wall Street portfolio and build one that really works?
Is the housing recovery for real? Maybe it is and maybe not. It’s too early to tell. But you should be paying attention, gathering resources, and dispensing information for when it does.
The AIPIS Team
Flickr / Mike Licht.NotionsCapital.com