Yoram Eliyahu Updates Real Estate Investors on Market

Online, September 24, 2012 (Newswire.com) - According to a recent article from U.S. News & World Report, the housing market is showing signs of recovery-a circumstance that has encouraged many investors to look for ways to put more property into their portfolios. It notes that a majority of these investors are turning to real estate investment trusts (REITs), but there may be other options for those looking to make a profitable return. Yoram Eliyahu, real estate expert, explains, "Real estate investment trusts are definitely an attractive option for the willing investor, but it is important to look at the market as a whole and how its slow recovery will impact other industries. These affected industries may be where investors could make a decent return."

The article notes that much of the refreshed motivation stems from new statistics that indicate a slow recovery among the housing market. U.S. News & World Report states, "Optimism grew [at the end of August] as U.S. home prices rose a fourth month in a row and sales volume increased, both gaining about 10 percent compared to a year earlier. Perhaps more important, the number of foreclosure-forced sales is down by more than 20 percent from last July." The article also observes that during the market downturn, investors used their funds to "buy up low-priced building sites in desirable locations." However, Yoram Eliyahu explains that, while the real estate market is strongly influenced by location, these things can change fairly rapidly and may only prove profitable for those interested in short-term investments.

Looking at the larger picture, the article suggests that investors may want to shift their focus to homebuilders and materials companies, such as Home Depot or Lowe's. Yoram Eliyahu comments, "With the supply of homes remaining lower than the current demand, it makes sense to project that construction will increase, and could deliver a decent return after all is said and done."

However, the article also notes that developments have remained concentrated on commercial properties and apartment buildings. It explains that the recent economic downturn has led to increased reluctance among the Millenial generation in terms of buying a home; instead, trends have shifted as younger consumers have opted to rent houses or live with family members instead. The article indicates that, while this may be the current trend, industry experts expect consumers to shift in the future, especially since the rise in rentals has caused home prices to drop. It notes, "Goldman Sachs said in a report that it expects new-household formations to return to their historical annual levels over the next five years...By that time, the children of baby boomers-over 85 million of them-could have saved the money to buy."

In response, Yoram Eliyahu comments, "Looking at the next generation of homebuyers is going to require patience on behalf of investors, but it could certainly be an intelligent move. However, it is important to consider all the implications of that generation. If relying on the future growth of the housing market, investors need to assess where Millenials are headed in terms of careers, location and spending habits."

ABOUT:

Yoram Eliyahu is a real estate professional who offers industry insight and unparalleled customer service to each and every client. A leader in the commercial real estate field, Yoram Eliyahu guides his clients through the process of buying and selling properties.