Zero Value

After the United States Housing Bubble that affected the housing market extensively when it finally burst in 2007, the real estate industry has yet to fully recover from the debacle.  At best, its movement is characterized by isolated bounces at the bottom rung of its performance level.  This is in spite of several efforts both from the government and private sectors to spark activity and recovery in an industry that directly affects many people.

The problem which was believed to have been caused by a combination of factors such as the relaxed housing tax policy, heavy promotion that led to a speculative fever for home ownership, and the mortgage interest rates that were hardly fixed had a direct impact on homeowners, business owners related to home supply, home builders, as well as mortgage markets and real estate developers.  Because of the widespread effect of the problem, the government specifically has been trying to infuse energy into this flat-lining industry.  This is not surprising since a home represents the major symbol of wealth for many Americans.

The Emerging Trends in Real Estate has noted sporadic growth in select real estate markets.  It sees the biggest potential in properties offering primary 24-hour transporation hubs while offering global access such as apartments, downtown office buildings, and warehouse properties located at prominent ports and gateways, among others.  It sees the suburban offices as having the least potential as of now.

It further noted the importance of job creation in ensuring the industry’s sustained recovery.  Full recovery may take some time to come as home prices try to seek their real level.  Before this time comes, we can use the time to learn where we did go wrong.

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