Dave Liniger, founder of RE/MAX, posted his annual RE/MAX Top 10 Housing Predictions via YouTube. It’s definitely worth the watch, as this man is one of the biggest movers and shakers in the real estate world and knows what he is talking about. The bottom line is that 2012 is supposed to be better for real estate than 2011 was. That being said, it is important to remember that all real estate is local and for those of us in Nevada the recovery is something we are still waiting for. Our state was, and still is, one of the hardest hit in the real estate realm. Some of the recent legislative changes in our state have seriously stalled the flow of foreclosures coming on the market and things could get interesting as demand for homes picks up and supply dwindles…at least temporarily.
One area that the demand will likely come from is the 18-30 year old crowd. Liniger said that in a normal market about 5 million of them are living with their parents. In our current market there are 29 million living under that arrangement. He commented that they aren’t particularly happy about it and neither are their parents. This made me smile in light of some of the conversations I’ve had with friends in that situation lately. With the low prices, record low interest rates, and low down-payment programs available, buying a first home is a fairly achievable goal for a young adult. If you know a student who has some savings or even access to a down-payment gift, there are some things they can do to position themselves to buy. Basically, they need to be 18, and have a couple of lines of credit for 2 years and can even qualify with a part-time job if they make enough and have 2 years job history. The opportunities will be out there for a while.
