According to the recent Real Estate Consensus Forecast conducted by the Urban Land Institute, home prices are expected to increase in 2013, with housing starts nearly doubling by 2014. Housing prices are expected to stabilize his year, and then increase by 2% next year, followed by 3.5% in 2014.
The rate of unemployment is expected to continue falling, with the GDP growing. Inflation and interest rates will continue to rise, which will increase costs for investors. Survey results do not anticipate substantial increases in real estate capitalization rates for institutional-quality investments, expected to hold at 6%. While this steady growth is encouraging, we can’t take our eyes off some impending global and national events which could provide influence, including the upcoming presidential election, Europe’s debt crisis, major international elections and tightening financial regulations.
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