Buyer Optimism Continues in the Real Estate Market

Real estate is known to go in cycles.  The last downturn, which started at the end of 2007/beginning of 2008, is painfully engraved in most of our memories.  There is hope though.  According to the California Association of Realtors, buyer optimism has dramatically increased in the past 5 years.  The following table summarizes the California Association of Realtors survey results:

 

Year Will Prices Increase in 5 Years Will Prices Increase in the Next Year
2009

35%

8%

2010

52%

23%

2011

46%

21%

2012

41%

25%

2013

60%

36%

The strong response regarding prices increasing in the next 5 years is not surprising.  As a long-term investment, most people believe that real estate should increase in value.  The more important item to glean from the results is that more people believe prices will rise next year.  The real estate market has seen some strong gains in the past year, including double-digit gains in some areas.  Buyers continue to believe that this upward trend will continue.  This is a good sign for investors, home owners, and the economy in general.  It appears that the real estate market is on an upward trend again in its current cycle.

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