Realtors Welcome the Low Rates Housing Market

May 22, 2012 / Russell Legato, Residential Property Analyst

Low rates housing market is a good investment opportunity. The factor giving impetus to the real estate industry is the record-low interest rates. No one thought they could go lower, but it’s like the guy who could move under the limbo stick a few inches off the ground. No one believed he could go any lower – until he did.

Realtors Welcome the Low Rates Housing Market

Two research analysts with a proven track record, say that retail companies are more willing to reinvest in their businesses. They are investing in new stores, improving the locations already in existence and trying out prototypes on a small scale to see how well they function.

Some retailers, Apple for instance, are offering the in-store opportunity to shop in person rather than on the Internet. The hands-on testing of products customers may want to purchase is now more available. Good service is a must to keep customers satisfied and of course the product must be high-quality.

Malls in high-traffic places are largely owned by Real Estate Investment Trusts. They have more capital to invest due to their larger portfolios. They are able to offer better rates due to the size difference between them and the smaller competitors. Those in small markets must offer something trendy in at least some of their stores. That may include shorter leases and lower rents.

One association of homebuilders sees measurable improvement in new housing starts. This is a prediction of more purchases of housewares. Each new home will have to be filled with all the necessities.

U.S. port cities are expected to see large changes. The East Coast and the Gulf Coast ports are predicted to overtake the West Coast ports. Experts say that East Coast traffic should increase significantly because trade is growing in new, emerging markets and diminishing in Asian markets.

Low rates housing market will be affected, although how much is yet to be determined.

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