2012 has been a roller-coaster year. In 2012 Obama was elected again, Hurricane Sandy devastated the NE, the economy started its recovery on Wall St and Main St and as I write this we are on the edge of the fiscal cliff again. I’m a real estate guy so here are my top real estate stories of 2012.
Top Real Estate Stories of 2012:
1. The real estate market hit a bottom in early 2012 and started a slow recovery.
2. Interest rates hit a low of almost 3% on a 30 year fixed rate loan and the Fed stayed committed to keep rates low.
3. The recovery has meant lower inventory which extended beyond the seasonal peak in Summer well into Fall.
4. New home and apartment building skyrocketed after years of almost no building.
5. More sales of existing homes nationally and in Portland.
6. Rents are up almost 10% in one year in Portland.
What would I love to see in 2013?
I’d like to see lending loosen up for commercial, investment and residential loans. I think the recovery will continue but if it gets easier to acquire a loan that will really speed things up. I think there is a huge market for good borrowers without perfect credit who would be willing to pay a higher rate if it means they could buy now.