Does the Real Estate Market Follow Economic Trends?

Okay, the media in general is touting the US economy is doing better than it has over the last bunch of quarters. People across the country are working again. Typically this news leads people to feel better about the overall economy. More directly, this has translated to a recovery in the real estate market.

Signs show home values are coming up from the lows of 2008-2011. It is easy to keep track of values using REIAComps. Sales in many markets have been increasing and there a good volume of houses to choose from and lastly the number of folks looking to buy are up.

These previously mentioned factors are good for people who purchased at the height in 2004-2007. This was the time period when negative equity was born. Upside down mortgages became common place far too often.

Now there is site called Zillow out there on the net. Zillow says over 700,000 homes avoided going upside as of the beginning of 2013. However, over 12+ million homeowners owe more on their mortgage than the existing home value. It has been suggested upside mortgages average $70k higher than their value. Investors who use REIAComps are easily able to stay up to date on value data.

So while the real estate market is on the rebound, the negative effects are still present. Homeowners with little equity have a hard time buying a new home because of the associated costs. But these aspects bode well for serious real estate investors in the area of Short Sales.

Do you think there is a tie in between the economy and the real estate market? Using REIAComps will put you in a position to know when the economy is rolling by tracking the transactions in your area. Let REIAComps lead you through the economic trends of real estate.