Real estate affects our lives in many more
ways we could realize. The impact real estate has on our economy as a whole is
exponential. The demand for real estate typically moves in positive correlation
with the current state of the economy. If the economy is booming, there is more
money to be spent on real estate, and the value of land increases due to the
increase in demand. The same goes during a recession. As a property owner, it
is our job to inform ourselves about the current state of the economy and how
it relates to our real estate investment decisions. To give a little more
information on how real estate impacts our economy, here are a few statistics:
•
As of early 2010, land and structures
comprised around 26% of the total assets of households and 33% of the total
assets of businesses.
•
5% of the nations total GDP is comprised of
real estate
•
The total outstanding mortgage debt in the US
was more than$14.1 trillion in early 2010.
* Stats provided by "Real Estate Principles" Tenth Edition. Charles Floys and Marcus Allen.
* Stats provided by "Real Estate Principles" Tenth Edition. Charles Floys and Marcus Allen.
Clearly we see the affects real estate has in our economy as illustrated in the housing market collapse of 2008. Although we saw devastating consequences from many angles, some real estate specialists believe the crisis will in turn be a positive event in the realm of real estate. In the article "Opportunity Emerging From Crisis: The Future of Real Estate Leadership", the authors interview 14 leading real estate specialists who believe the crisis has allowed for a "fresh start" or "new era" if you will. Link: http://www.spencerstuart.com/research/1516
In my opinion the real estate market is here
to stay. We are going to always have a demand for land, no matter the state of
the economy. It is our job as land owners to inform ourselves for our own good,
and the good of the economy as a whole.
Here is also provided a general informative website for market trends, current events, and helpful informative links regarding the realm of real estate. There are no excuses when it comes to not being informed! Enjoy.
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