Thinking About Investing In Real Estate? Here Are The Stats To Watch In Picking Investments That Will Pay Off As The Recovery Continues

Monday, November 19, 2012 08:08
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Thinking About Investing In Real Estate? Here Are The Stats To Watch In Picking Investments That Will Pay Off As The Recovery Continues

Tags: client education | investment strategies | real estate

Despite the declines in the equities markets of late, the real estate sector is still looking good.

 

The fiscal cliff could knock even that market off track, but we can see that the data over the past few months is showing some increasingly encouraging signs, especially if you’re looking for investment ideas.

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The key things to keep in mind are:
  • Sales volumes have increased 6% from a year ago
  • Sales prices declined 4% on a year-over-year comparison
  • Leasing activity declined 1% from the previous quarter
  • Rental rates declined 3% from the last quarter
  • Concession levels declined 1% on a quarterly basis
  • Financing remains the sticky wicket but is followed closely by pricing and the impact of local economies on the commercial market
Although the rate of regional improvement is still variable, there is improvement overall. Existing home sales in the South increased 5.4% in the third quarter and are 11.7% higher than in 2011.
 
Existing home sales in the West slipped 1.2% during the quarter due to supply constraints but are up 2.1% over last year.
 
National statistics from the National Association of Realtors are similarly positive with median home prices rising in 120 out of 149 metropolitan areas based on third-quarter closings over closings in the third quarter of 2011.
 
So if you’re looking for real estate investments, it’s still a good idea to take a look at the stats on a regional basis along with supply and other constraints that might affect returns both short- and long-term.

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