Bay Area And Real Estate Development
As the housing bubble in the US burst, it led to a spate of foreclosures, dramatic decline in house values and sharp reduction in the number of sales. |
Sponsored Links :
|
No part of the US was left unaffected; also no business involved in any aspect of real estate was left untouched. Some areas of the US have been affected more than others.
Although the Bay Area has been affected by the bursting of the housing bubble, experts believe that with constant influx of people coming to live in this area, the growth of real estate is inevitable. Once new households are formed in this area, the excess supply of houses that are presently lying in the area will be taken up. Once this happens, there will be a recovery and real estate development will continue like it was prior to the formation of the housing bubble, which lasted from 2003 to 2006.
However, even within the Bay Area, different submarkets will show different trends. Therefore, the scenario painted above will not be across the board in all submarkets of the Bay Area. For instance, in southern part of San Francisco, Marin and the Peninsula, there is insufficient land available for real estate development. This is because of various legal, political and environmental decisions and policies. These areas are very popular and practically everyone wants to own a home here. However, since the supply of homes is limited, these will be the first regions in the Bay Area to show recovery based on high demand. Once the real estate market in these areas recovers, automatically the prices of homes will increase, and things will go back to normal -- low supply and high prices.
On the other hand, East Bay area is considered to be far from the places of employment. People who choose to live in this region will have to travel for a long time to get to work. Therefore, this area will have an oversupply of homes even when the real estate market recovers. However, those who cannot find homes in areas they prefer will be forced to take up residence in East Bay. Thus, the excess supply of houses should come down in due course of time.
More Articles :
|
