Real Estate on a New High

There is an unprecedented boom in real estate in many parts of the world. The prices of land are jetting into the sky. Investment in real estate is yielding huge profits. The boom in real estate is real and here to stay.

In USA, the new real estate is now inextricably linked to its economy. A rising real estate market is now part and parcel of a stable economy and rising financial markets.

The stable economy and booming financial markets have increased the purchasing power of the people. In USA, middle class people in the age group of 35 to 55 are driving the demand for second homes. The growth in the commercial and IT sector is bringing lot of money in the hands of young people. Interestingly, the new homes are seen as investment. The vast migrants who have settled here have fuelled the prices of homes. The migration from developed cities to backward, semi-developed and country side has increased the demand for homes. Sometimes hurricane like Katrina will most likely be a boon for real estate market in the region. That’s because major hurricanes are usually followed by renewed bull markets once the clean-up and recovery period have ended.

There is continuous surge in the demands for homes. America needs to make rooms for 70 million people during the next two decades. The demand for new lands will increase by many folds and the availability of land will not be the same, hence it will replace many existing structures. Cities like Phoenix is still growing and suburban areas like Buckeye where trends can be seen converging to trigger a flash flood of construction. Buying land early can generate huge profits for real estate players. In Oregon and Washington, growth trends see Portland and Seattle merging by 2030 into a single mega region.

In the south and the east region, owning a piece of tomorrow’s boomtowns is already driving billions in long-term speculation. Another important trend is fuelling the growth of real estate market, young Latino families and immigrants are opening doors of opportunity for businesses.

A slightly different but important point to remember is that real estate doesn’t even need a boom to roar. Even when property sales and price appreciation settle back to more normal levels of activity, property returns still offer benefits that more traditional investment vehicles such as stocks and bond cannot. The other point to note is that stocks are volatile.

The leveraging power of the real estate investments as well as the tax and other Government benefits bestowed upon property gives real estate a "competitive edge" over stocks and bonds and other investment rivals such as long-term investments, even in a slower real estate market.

Real Estate bubble is not going to burst now. It is in its prime and when you are in your prime, you should put your best foot forward.

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