Daily Real Estate News  |  November 29, 2006  |   Home Owner Equity Just Fine, Says ULI Report
Although housing could stay flat in the coming year, equity losses aren’t in the cards for a majority of home owners, says Emerging Trends in Real Estate 2007, an annual outlook published by the Urban Land Institute and Pricewaterhouse Coopers.

Regarding sales of existing homes, the report says that only recent purchasers who are forced to sell quickly are at risk for losses. Acknowledging that the days of “halcyon returns” might be over, the report cites lack of affordability and an oversupply of units as the main cause of what’s described as “housing angst.” Even so, “most people are well ahead of the game and will stay there,” the report says.

Even though the report calls for a downturn in the overall economy, the anticipation is that the economy will have “enough steam” to support growth of demand in real estate markets. “Expect enough economic growth for solid real estate absorption” is the forecast.

Going Green

The one trend worth watching? Green building, which the report says could “cut across all property sectors” from residential to office to retail. Since buildings and homes account for 40 percent of U.S. energy consumption, the energy savings of a green movement could be huge. Savings and environmental benefits will continue to bolster the trend even if energy costs decline, says Emerging Trends.

New Construction

Austin, San Francisco, Washington, D.C., Los Angeles, San Antonio, New York City, San Jose, Jacksonville, Fla., Seattle, and Houston are mentioned as cities that offer the best prospects for owner-occupied new construction. Denver is cited as a market with strong development prospects due to its growing light rail system, evolving 24-hour downtown, natural beauty, and international-scale airport.

Infill, mixed-use projects that appeal to both empty nesters and their young adult offspring were once again singled out as a favored type of development. Transit-oriented development is described as “almost cannot miss.”

For residential construction, the products with the most development opportunities are:

• infill and in-town housing
• second and leisure homes
• attached single-family homes
• detached, single-family moderate-income homes.

— By Camilla McLaughlin for REALTORŪ Magazine Online