A Google search on “real estate market recovery” shows varying results suggesting positive and negative trends. This matches some of the variety that we’ve noticed.
In our market analyses, we’ve seen real estate sale prices increasing, especially for homes. This suggests a recovering real estate market. In our municipal finance work, we’ve seen that assessment appeals have been decreasing. This suggests that property owners agree that the real estate market is recovering.
RealtyTrac® released its U.S. Foreclosure Market Report™ for November 2015. It shows that foreclosure filings — default notices, scheduled auctions, and bank repossessions — decreased by nearly 10 percent from the previous month and were down more than 7 percent from a year ago.
Even with these positive indications, we know the market recovery is uneven in terms of geographic areas (coastal areas are doing better than inland areas, and actual sales are better in some parts of the state than others), property types (residential real estate is doing better than commercial real estate, and some types of commercial real estate are doing better than others), and other nuances.
For instance, a recent analysis by NAI Benchmark indicates that the three commercial real estate sectors in northern San Joaquin Valley are in different stages of recovery. Industrial building is in high demand with high rental rates. There is less demand for retail and office space with falling vacancy rates and rising rental rates.
No matter your current real estate market conditions, RSG can help you to identify the best strategies for local, real estate-based economic development. What’s been your experience with the recovering real estate market?
Written by Dima Galkin, an Associate at RSG