Why Real Estate Markets Show Strength Despite Recession?

It is sometimes quite a wonder to see how the real estate markets have survived the tide so far. While all other sectors of economy have seen a major slide downwards during the recession, it is only the real estate markets that have shown great strength in these tough times. Amazingly it has been the industrial spaces being sold out in the submarkets that have helped the real estates to keep afloat. In spite of the fact that unemployment is on high, there are still demand for more office spaces and with times to improve, even apartments and plots will start catching up in the real estate market. 

Real estates have been able to stay afloat due to various conditions in different parts of the world. Establishment of a hotel in the area could substantially improve the rates in an area while in some other place it might be the proximity to some important cities of the country that led to such good demand in the place. Also some rare locations like proximity to riverside or beautiful scenery could be the reason for sites to remain in command even in bad times. Also though money flow is low at these times, yet most know that investing when the rates are low and holding them till the economy is back in boom will be the key to their success in real estate market. Even residential areas have remained in great demand due to the anticipation of a good economy in the near future.

Statistics show that sales of existing homes have been picking up in the last few months. This has marked the close of some really bad times in the real estate market of US. However, in near times the market is going to show some great signs. Prices have kept falling throughout 2009 and also the mortgage rates have fallen in line. Perhaps this is what has boosted more sales of such existing houses in the market. Those who are ready to make good of this golden opportunity are taking up the risk of investing in this down market and then holding such investment till times are good enough. Once the prices start to rise, such property will bring in great profits.

Estimates show that sale of existing homes have risen to around 6.5% annually. This rise is a sign of real estate remaining consistent through the times to come. It has proved its stealth when most required and today it is the only sector of economy where you can hope to reap huge returns without big fears. Though it will take some more time for the recession effects to stop coming in, government is already taking up steps to ensure that the foreclosures do not flood the market and real estate sees some good times in near future. The nationwide fall in prices is estimated to be around 15% this year. In fact this downward fall in prices is the best time for realtors and hence it is good time to invest so that you can make hay while the sun shines!  

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