Real estate agents in the United States are in an unusual position as they wait for prices to rebound before making their decisions.
The economy has been on a roller coaster ride lately, with both job losses and an economic expansion.
Many are predicting the market will rebound soon, but some are worried about how long that recovery will last.
“We’ve been talking about the recovery in the U.S. for the last couple of years, but it’s been slow,” said Matt Flegel, managing director of Real Estate Strategies Group in Washington, D.C. “The economy is slowing, there’s a lot of uncertainties, and that has caused some anxiety.”
But Flegell and other real estate agents are hoping that this year’s job market will bring a burst of activity to the market.
The first real estate crash in nearly 50 years in 2009 helped drive down the value of homes and led to the worst financial crisis since the Great Depression.
But it also brought a new wave of construction and residential activity.
“I think there’s going to be some new building that is going to start in the fall,” said John DeCarlo, a broker and president of the American Association of Realtors, which represents real estate brokers and has advocated for a rebound.
“When people think about the housing market, they tend to think about a single house, but in reality there are so many different types of homes,” he said.
“The trend we see now is people are looking at the market for multiple types of houses.”
DeCarlo said there are many reasons for this trend.
For one, the U:P economy is improving.
People are moving into higher paying jobs, and prices are rising at a more moderate pace.
The U:O economy, which includes manufacturing and other service industries, is also improving.
So are the housing markets.
The housing market is still fragile, but DeCarlos said he is optimistic that it will improve.
“If you look at the trend in the housing sector, we’re seeing growth that is actually a little bit more moderate than the prior downturn,” he told The Associated Press in an interview.
DeCarlos says the housing recovery is likely to continue for years to come.
“People will still need to work to make ends meet, and there will still be some challenges to overcome in terms of affordability,” he added.
Real estate agents who want to stay ahead of the market can buy a home right now at a discount.
That discount is called a mortgage, and it is generally paid off when the home is sold for less than its appraised value.
If the buyer is able to buy the home at its appraized value, the mortgage is forgiven.
But if the buyer can’t get a loan from a bank, they will be required to repay the full amount of the mortgage, or the lender may foreclose on the home and force the seller to pay the mortgage back.
A homebuyer with an appraised sale price of $400,000 or more can get a mortgage that would be more than enough to pay off the entire $400-million mortgage.
“There is a lot to be excited about right now, and I think that the mortgage market is going through a very positive phase right now,” said Flegl.
“It’s a very healthy market, and people are buying houses.”
But if a homeowner wants to avoid foreclosure and instead wait for the housing bubble to burst, they should consider the possibility of a tax break for people with low or no equity.
“It’s really important to understand that the government is not offering you a guarantee that you will be able to pay that mortgage off,” said Michael Shulman, a partner at New York law firm Perkins Coie.
“You are essentially making a commitment that the tax credit you will get will help you pay off your mortgage and that the credit will be paid.”
The real estate market has been relatively stable for years, and the economy is recovering.
But it is still slow, and more people are moving out of the city and into suburbs.
Many of these people are paying higher rents than they were a few years ago.
“A lot of people are going to buy their own home, they’re going to pay more,” said DeCaro.
“So they’re getting less tax credit than they used to, and they’re also more likely to be in a rental market.”
DeCosto agrees that the economy and housing are in a good place.
“There’s a real estate recovery going on, and we’ve had no major busts in the past five years,” he noted.