7 Key Reasons Smart Homeowners Move up at the Start of a Real Estate Recovery Cycle - Reason #1

Posted January 24, 2012 03:05 PM by Alyson Spann    

As in any changing market cycle, there is opportunity for smart homeowners and investors.  The challenge is (and history will bear this out) that opportunity is sometimes hard to spot, or sometimes, in order to capitalize on that opportunity, you have to go against the grain of what most homeowners and investors are thinking and doing.  

The goal of this report is to show that there is opportunity right now in the "moveup" market, and to show you seven key reasons why smart homeowners are moving up now at the start of the recovery to maximize the opportunities available in the current changing market cycle.  I urge you to read this report andsee if there is opportunity for you.  However, time is of the essence.  The window on this moveup market is limited.  You don't want to be looking back 6 months to a year from now kicking yourself for not taking advantage of opportunity that is out there now!  

Reason #1

Smart Homeowners Know It Starts with Something as Simple as Supply and Demand

It's the most basic law of economics.  It's so isimple, but it's a strong driving force on pricing for every product and service produced in the United States.  Great demand and low supplies translates into higher prices.  It's true about iPhones andit's true about real estate. 

Reason #1 is that they understand this principle and are looking long term.  This perspective allows them to see past the gloom and doom headlines and the lingering fallout of the recession to know that soon, demand for the mid-range and upper range move up homes will grow - and therefore the prices will rise.  

Why will demand for these homes grow?  Consider these factors: 

• Population is still growing in the US.  Everyone needs a place to live. 
• By the end of 2010, Generation Y will outnumber baby boomers and they will be looking for bigger homes to house their growing families. 
• As the economy improves and jobs start to become available, people will start looking to move out of their parents' homes and their cramped apartments. 
• The building of new hoomes has been severely curtailed and has not kept up with demand.  Many buiders have been forced out of the business. 
• Normally, as the economy improves, builders have been able to quickly ramp up to meet demand.  Not so in today's economic climate.  Buiders have sold off their land or haven't been able to buy the land that they first have to prep for their new developments.  Funding is hard to come by to initiate the new construction.  Tighter, more restricting regulations are being imposed by the government on the new construction. 

All these factors above are affecting new construction and thus affecting the supply and demand in the housing market.