Last week, a few of my associates were talking about the coming year. What will the housing market look like in 2012? Have we seen the bottom of the market? Who will be buying and selling this year? First timers? Empty-nesters? Of course, none of my colleagues had the answers to these questions, however there is great optimism in the office. And the open house traffic on the near west side has been robust in recent weeks!
During the conversation, another interesting tidbit was revealed. The investors are back! In the past few weeks, several homes have sold and as the ink dried on the documents, the dumpsters were arriving to remove the old faucets, fixtures, and finishes. In their place, new flooring, new windows, new paint and additional upgrades were moving in.
This is a good sign, for several reasons. First, it means that the investors believe the market is going to turn around in the near future. These individuals have been absent from the real estate market for several years. There wasn't any money in it. Today, they think the investment of time and money will yield a return, so they are back.
These investors will also raise the value of the property they purchase (and remodel), once resold. This is great news for sellers, who have been plagued by lower prices.
Of course, any change in the marketplace won't happen overnight, but it's certainly a good sign when those who spend money to make money are doing so!.
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