As the real estate market continues to recover, consultants and advisors like those at Ferstl Valuation Services are analyzing the market’s potential opportunities.
The real estate market seems to be on its way to recovery after the effects of the 2008 housing crisis. However, real estate consulting experts are predicting impediments to a complete recovery which includes fiscal policy issues, pending regulations and protracted economic growth. Asset prices are slowly reaching their 2007 peaks in major markets while capital availability and transactions are also gaining ground. Consulting firms across the country are continuously studying and monitoring these changes to advise on the market as it redevelops.
The Current State of Real Estate Appraisals
The dynamic nature of the real estate industry has offered appraisers a golden opportunity to carefully analyze and deduce ways of offering valuable consultation services to clients. With the markets poised for growth, real estate appraisers are preparing for the influx of foreclosures, land valuations, forensic appraisals and mortgage lending appraisals. Analysts anticipate that financial institutions, lawyers and government agencies will top the list of service demands.
According to recent survey results from the Appraisal Institute, over the next 2 years:
Commercial appraisers are anticipating
↑44% increase in demand for appraisal reports
Residential appraisers are anticipating
↑37% increase in demand for appraisal reports
The current market situation has suppressed complete appraisals predictions to 31 and 21 percent by commercial and residential appraisers, respectively.
The Potentiality of Real Estate Investments
Development activity remains subdued in most property types, and stringent lending standards are steadfastly holding for potential property owners, investors, and builders. Uncertainty from measures such as Terrorism Risk Insurance Act, whose financial protections will end this year and potentially jeopardize the economic value of commercial assets, and the financial reforms of the Dodd-Frank Act, which reduce the amount of private equity capital available, are more likely to promote increased caution in the sector.
However, even with increased lending standards, the real estate market continues to exhibit capabilities of being an economic driver at times when other sectors are recording inconsistent results. It is evident that real property is one of the most lucrative areas to invest in this year. Economists project that because of spending cuts and federal tax increases in the final quarter of last year, the sluggish US gross domestic product (GDP) growth is likely to hurt most other sectors.
What to Expect in Real Estate Consulting
A close analysis of current trends is 100% necessary to break through the real estate market. As with every real estate boom, a lot of property will be over-valued making it difficult to recognize what has the potential to be a poor investment. But with the proper guidance and exposure to the right data, that pitfall can be avoided.
The qualified, trusted real estate consultants and appraisers at Ferstl Valuation Services will carefully analyze your real estate need and pursue your best interests. Our staff consists of licensed attorneys and certified real estate appraisers who exercise expertise in consulting, litigation support and expert testimony, and commercial and residential property appraisals. Contact Ferstl Valuation Services for more information about how working with experienced real estate consultants can aid your real estate investments or call (501) 313-0641.