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23 Mar 2010 11:23 AM |
| PREDICTIONS
by Frank Russo |
PREDICTIONS By: Frank Russo
Indianapolis Colts will win BIG – that was my Super Bowl prediction. I hope my next one is better! Here it is – The real estate turnaround is closer than you think. In qualifying this, prices will remain flat for some time to come. Activity, however, will grow dramatically in the near future. In one periodical that I read there were 3 articles over 2 pages that read:” Apartment Shortage Looming”, “New Inventory Too Low in Some Areas” and “Builders Predict Big Jump in Production”. In the apartment arena, Las Vegas was quoted as having a “severe shortage” and demand will overtake the supply by the middle of next year. It appears that there is a 2 to 3 year lead time to build apartments. By the time they are needed the situation worsens because of the lead time. On the new home inventory, the Chief Economist for the National Association of Home Builders said that the standing inventory ready to be occupied is at its lowest level since 1971. Recently I had the privilege of hearing Dave Liniger speak. Dave and his wife Gail started the RE/MAX organization almost 40 years ago and have grown it to almost 100,000 Realtors in 78 countries. Dave has access to some of the best information the world has to offer. He is convinced we are in line for another real estate boom. Much of his data was based on birth rates. The “Millenials”, age 18-24, are about 73 million in number. The “Baby Boomers” were about 80 million. When this next home buying generation hits the market; it will have a profound impact on the real estate
industry.
The next few years will still see a whole lot of ugly as more foreclosures move through the system, but I do see a bright spot somewhere down the road. Unlike the Colts; this I am confident about.
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