Real Estate Predictions 2012 by Ken McElroy

FOR IMMEDIATE RELEASE
Scottsdale, Arizona, United States of America (Free-Press-Release.com) February 16, 2012 -- Real Estate Predictions 2012
by Ken McElroy

Shaken by stock market declines and anemic bond yields, investors will continue to gravitate toward equity real estate in 2012, but will grow somewhat unsettled in the face of limited property investment opportunities. To further the confusion, no markets or property sectors offer sure-shot opportunities for big gains in 2012. Canadian real estate markets will continue to remain the most stable in North America as they never really experienced a bubble.

It should be no surprise that the US markets that experience population and job growth will be the strongest economies over the near future and investors should focus on markets generating jobs—typically where health care, technology and energy companies concentrate. In many markets, continued economic doldrums and the absence of dynamic jobs generators to stimulate overall demand will have on going negative impact on most every real estate class. Jobs will be the key to recovery.

The lackluster employment outlook in many areas will create delays in filling office space and the related drag in consumer spending compromises growth in retail and industrial occupancies and rents. As mortgages mature in many of these properties we will see continued defaults as the lenders will underwrite to current occupancies and rental rates, creating a lower valuations and putting stress on investors.

On a positive note, pockets of hiring will occur in certain industries which will be driven by ongoing trends and specific demographics. Pay attention to these emerging trends when investing.

The top US investment markets remain the usual suspects, led by the 24-hour global gateways— Washington, D.C., San Francisco, New York City, Boston, and Seattle. Austin, the moderately sized Texas capital, will continue to benefit from dynamics created by its large university, the local tech industry, government jobs, and regional energy-based economy.

The strong energy sector will continue to create jobs in many areas but be conscientious of the fluctuation of oil and gas prices, which can create variances in local employment. This will include Texas cities and some out-of-the-way places like North Dakota. Technology will continue to boost areas of California, the Seattle area, Boston, and smaller high-tech markets like Austin and Raleigh- Durham.

Health Care will be in the headlines for the next few decades, and it should be no surprise that now that in the US the baby boomers are turning 65 years old at a rate of 10,000 per day, that health care will expand everywhere.

Read More at: http://jetsetmag.com/categories/real-estate/2012-real-estate.html#nav

jetset     jetset magazine     Ken McElroy     real estate prediction     real estate predictions 2012