Real Estate in 2012 - Deaton’s View
What are we likely to see in 2012 for our local real estate market?
Pricing has maintained its stability around Central Arkansas, and I expect that home prices will see a slight increase in 2012. Did you know that Arkansas is only a handful of states where home prices have been on the rise over the past couple of years? It’s true.
We are fortunate in Arkansas that we didn't see the drastic drops in pricing like other major markets. We have been moving "steady as she goes".
I expect inventory to stabilize as well. When you have excess inventory, then you have lower prices overall. Lower inventory leads to higher prices. Simple supply and demand.
Expect foreclosures to stay strong during 2012. There are some legal 'hoops' the lenders are having to jump through in our state, but those are being handled, and there will be an ample supply of foreclosures and other distressed properties to hit the market in 2012.
As it was in 2011, 2012 will be an excellent time for anyone looking to purchase a home. If you are not investing in real estate...you better in 2012! Pricing will continue to increase in the future. It can't go down. Many models are showing that we hit the bottom already and have started the climb back up.
If you are currently renting, you need to stop that ASAP. Interest rates will never be lower, and pricing is good. It actually costs more to rent than to own! That is a true fact! Rental rates have increased greatly over the past two years. Concerned about being able to get financing? Don't give in without contacting me. I have lenders ready to provide money on housing.
If you are not using real estate as an investment tool....for rentals or flips, you need to begin in 2012. Pricing is good, interest rates are LOW, and rental rates are going up as more people are looking to rent. Plus, real estate still appreciates in value over the long haul. Its a winning situation for real estate investors. Don't miss this opportunity. If you are interested in learning how to invest in real estate, let me know.
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