Last month I attended the meeting of the Leading Real Estate Companies of the World Board of Directors in Chicago. The board members represent premier residential real estate companies and, as I was heading back to my home sweet home in the Carolinas, I felt a sense that the second half of the year had the promise to be very positive. Even our Florida and Midwest brokers are reporting an increase in business without the tax incentive that we had last year.
Overcompensation in mortgage reform is still causing more-fall throughs than we would like. However, as the pendulum is trying to get back to a place that is a win-win for the customer, as well as the investor, we are seeing some movement.
Prices are still on the decline; but inventories are being reduced at all price points. I heard that in Michigan, anywhere from 20 to 50 percent of the transactions are short sales or distressed properties. I also heard that in the luxury home arena, up to 50 percent are cash transactions, and in many cases in Florida, California and New York, there are foreign buyers taking advantage of fabulous opportunities here in the States.
The Leading Real Estate Companies of the World are working together to assure that homeownership in the future is as secure as it was in recent history. Like the stock market, the reset button was pushed, and I still maintain that the reset was October 2010. After talking to my peers, I firmly believe that the second half of this year will be 15 to 20 percent better than the second half of 2010. The recovery is continuing its slow, steady resolve.
By Pat Riley (President and Chief Operating Officer)
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