Four Big Questions

With the elections behind us, I wanted to share the following article that offers some topics that will be of interest in the months and years to come.

Four big questions about real estate market

Philadelphia Business Journal by Natalie Kostelni, Reporter

With the election over, several real estate issues continue to face the national and local economy. It will take the next year to two years to see how things ultimately shake out and much of that depends on how politicians handle them.
Here are some of topics to track:
• One: The housing recovery and whether it will continue. Recent national and local data indicate that sales are up, prices steady, inventory down and the number of days a house is staying on the market before selling is on the decline. A new poll by FindLaw.com shows that Americans are feeling better about the housing market and the percentage of those who are more likely to buy a house has risen 11 percent from 8 percent.
• Two: Will the construction industry continue its sluggish but steady recovery and what, if any impact, will Hurricane Sandy have on the sector and economy? A Hanley Wood survey of 3,000 builders, architects, building supply distributors and others in the industry revealed that three in 10 expect a “strong economy” by the end of 2013, and over half feel the economy will be “vastly improved” by 2015.
• Three: The Housing Alliance of Pennsylvania is keenly watching what will happen to federal funding for affordable homes, community development and homelessness. The Department of Housing and Urban Development funnels much of its money to local agencies. In 2010, HUD awarded Pennsylvania $1.8 billion, according to the Housing Alliance of Pennsylvania. Both public and private property owners benefited from that money, which supports such programs as Community Development Block Grants.
• Four: Will multifamily continue to be a leading area for commercial real estate activity and what will ultimately happen with Fannie Mae and Freddie Mac? Lawmakers on both sides of the aisle, as well as the president, want to unwind and replace them.