How will the rest of the real estate recovery play out?

Want to know how the rest of the real estate recovery will play out? Here’s what the experts are saying based on surveys and interviews with real estate developers, investors, lenders, servicers and builders:
1) Real estate recovery still hinges on job growth
Economists say the most important thing about job growth is that it brings new households into the market. In fact, job growth is one of the trends that have a huge affect on the housing recovery. It’s simple, really; when people buy houses, they need to buy things to put in those houses. When people have jobs, they can afford to buy a house.
2) Inventory is coming back
Experts are predicting that low inventory we have been experiencing will continue for the rest of 2014. That helps sellers get top dollar from their property. Distressed inventory is drying up and sellers are looking at better profits than they have in years.
3) The buyer’s market is long gone
Sellers can set their price for buyers eager to buy before interest rates and home prices rise even further
4) Shadow banking is emerging

We’ve seen the concept of shadow banking emerging to fill a void in the market. Shadow banking is similar to traditional bank lending, but it’s done outside banks and can therefore get around bank regulations.
Borrowers going this route can find a hodge-podge of private funds, wealthy individuals, family offices, and refugees from other lending markets.
The bottom line, if you are looking for an outstanding home in Montecito, Hope Ranch, or any of the other luxury areas of Santa Barbara I suggest you act now. As you just read, the rest of the real estate recovery depends on several factors. Please give me a call at 805.886.9378 or email me at Cristal@montecito-estate.com. Check out the outstanding real estate listings in the area on my website.