Nobody is predicting that the real estate market is going to roar back. But there are glimmers of hope for an improved outlook as this year’s selling season begins. The latest forecast from Robert Charles Lessor Co. (RCLCO) shows some sectors are in full recovery while others are headed in that direction within the next 6 to 12 months.
The top level findings of the RCLCO Real Estate Market Index show that 58% of industry operators say their local and regional conditions are moderately better compared to a year ago and another 10% say conditions are significantly better. Real estate professionals in nearly every major metro area put their future regional index at over 75, a significant increase from a year ago. The average stands at 84. Markets with higher than average outlooks include Seattle, Phoenix and Houston. The outlook is less positive in Washington, D.C., Chicago, and Boston but still improving.
In terms of land use, the multifamily rental market has made a full recovery according to 48% of respondents. These industry operators also see improvements in the land market for uses designated as Active Adult Communities (59%), Seniors (57%) and Hospitality (56%).
Respondents also have the following expectations regarding full recovery for real estate sectors in the next 6–12 months:
- For sale residential 10%
- Active Adult Communities 21%
- Seniors 21%
- Office 9%
- Retail 13%
- Hospitality 18%
- Resort/2nd home 3%
- Industrial 25%
Over 70% of respondents say that the land and resort/2nd home sectors will not recover for at least 2 more years. About half say that the residential for sale market will likely take between 1 to 2 more years to recover. As a result, marketing for the apartment building sector may be most prominent this year along with new developments for active adults and senior housing.[Source: Hewlett, Charlie. RCLCO Quarterly Market Sentiment Results. RCLCO.com. 9 Feb. 2012. Web. 22 Feb. 2012]