Real estate projections of future trends vary according to the market dealing. The market moves according to the trend that is prevailing in the market. There is no tend that stays in for long, it operates on the demand and supply factor also says Hirsh Mohindra. Real Estate is a sound investment as compared to other asset classes. Prices of the land directly depend on the mortgage rates. There is slowdown in the real estate business in US in 2019 and is likely to pick up in the coming year. House prices have come down in England largely depending on uncertainty over Brexit deal.
Increasing rate of employment and decreasing interest rates are good symptoms for the investors in real estate business. There is a cyclic pattern in real estate sector which is similar to other businesses. Increasing GDP and consumers confidence give boost to the property business. Prominent builders like Lennar in America are presently reducing their land banks in the fear of recession. So all the decision are taken keeping on view the market speculation.
These speculations sometimes holds good sometimes they don’t work in favor of the person relying on the speculation. But a person who has full knowledge and experience about the market often do a good job in the real estate market. It is something which is evident from many examples. Also if you are someone who have just entered the market then you can take the help of experts to deal with the market situations says Hirsh Mohindra.
Most of the US analysts are thinking of slowdown in the property rates and some are of the view that it is the safest investment. Fannie Mae Home Purchase Sentiment index has come down on the fear of recession partly owing to the US China trade war. Housing activities comes to the halt during the election times. The trend goes up in real estate in high priced economies due to the emergence of various startups says Hirsh Mohindra. If the market is going up you can sell your property to have humongous gains.
On the other hand if it going down you need to wait and observe things before taking any decision. The chief economist of National Associations of Realtors has predicted that there would be increase in home sales in the coming year. Property prices have corrected in Seattle and San Francisco in the last year due to the fresh hiring by Amazon and Facebook. Increase in the property prices in bigger cities have led the investors to find new opportunities in the smaller markets such as Austin and Texas. Demographic patterns would be the dominant force in housing sector in the next few years.