Steve and Sherry

Colorado Springs Real Estate

California Real

Complex factors, prevailing today in the real estate market, causing excitement among potential buyers. All felt that “with prices that will happen.” But where they will move: up or down? Over the past five years price dynamics are clear cycles. Half or two years of growth is replaced by a year of stabilization, or so-called market stagnation. Then it repeats again. Applying simple mathematical calculations, analysts have come to concluded that by 2009 we will have a double jump in prices, followed by stagnation According to real estate agents ‘Math’, the average price of the square in 2007 amounted to 3,680 dollars per square meter in 2008, it will amount to 4,295 dollars, and in 2011 year – already 7778 dollars per square meter. It is this pattern awaits us on the Moscow real estate market. Because our ‘ceiling’ is near.

Reason for this assumption in several irn. Firstly, for all classes of housing Moscow has caught up, and here and there and surpass the level of housing prices in Europe, conceding that perhaps such a prestigious cities such as London or Monaco. Second, the rise in prices in any case constrained by solvency of the population. According to ‘Mian’ number of objects in the sale is kept at a fairly stable and probably for several more years will vary from 300 to 350 addresses (both in Moscow and the Moscow region). Number of proposals to reduce in connection with the ban on point building in Moscow. At the same time increase the reorganization of industrial areas of the city. With regard to secondary housing, slightly diversify ‘geographical’ situation may not yet implemented investment apartment ‘saved’ in 2005-2006. Despite the alleged lack of complete calm and disasters, there are two scenarios in which the capital’s residential property can be developed in 2008. First, the pessimistic option assumes that prices remain at 2007 levels. irn analysts say that the stagnation of the market and a slight correction in prices for apartments down in the first half of 2007 showed that the stronger fall in the value of housing No prerequisites. In their view, the continuation of the correction is only possible on certain types of housing or initially overpriced apartments. With regard to the price increase, if it takes place, it is unlikely to gain the scale of past years.

Rather, continue to analysts, this will increase due to the processes of inflation or slightly above it at 15-20 percent per year, which is typical for most real estate markets in a stable overall political and economic situation. And this scenario looks quite optimistic. In Moscow suburbs dynamics of prices will be about the same as in the capital. Chance of a more substantial price increases in a relatively inexpensive ‘Second’ belt cities in California – 15 miles from Moscow and in the far suburbs, especially in urban areas and in areas where there is infrastructure development and improvement of transport accessibility. In addition, higher may be the rise in prices for villas and townhouses (low-rise housing) in the suburbs, which can replace the flat economy class in Moscow. However, sharp price spikes of the real estate market of Moscow region presented already unlikely. Time, sharp differences of change of periods of smooth lines and long-term forecasts.

 

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