The 2012 National Association of Realtors Expo and Convention recently took place in Orlando, Florida, USA, where discussions took place from a wide spectrum of senior delegates from 52 countries.
The Federal Reserve System in the USA intends to buy $40 billion of mortgage-backed securities every month until they hit an unemployment rate of 5.5 percent.
These discussions confirmed the views of Tony Clarke, Managing Director of the Rawson Property Group, in that the future of the global economy remains decidedly uncertain,whatever happens in the USA will inevitably have serious implications on the South African economy anda lot still needs to be achieved to prevent the disintegration of the Eurozone.
In the medium term the prospects for the USA are encouraging as they are underpinned by an improved economic situation and a new energy boom.
Clarke says the future of the global economy may not be set in stone and there are still a few positive elements they can hope to see unfold. The Federal Reserve System in the USA intends to buy $40 billion of mortgage-backed securities every month until they hit an unemployment rate of 5.5 percent.
The implications that this will have on the property industry, he adds, is they can expect to see a rise in property investors in the US, due to low mortgage rates and a decline in home prices. The current mortgage rate is 3.5 percent and it is expected to drop by 0.5 percent within the next year. This, coupled with the fact that home prices have fallen by 35 percent, means that homes are becoming affordable and home sales have risen swiftly.
Clarke hopes South Africa will follow a similar trend because the demand for houses is rising fast, due to the previously mentioned factors, new developments will become necessary, resulting in more available jobs. The demand will also cause home prices to climb and people will no longer owe more than the value of their home.
Clarke says the Rawson Property Group was one of the largest delegations at the NAR convention and those who attended, mostly top performers and management staff, learnt a great deal about marketing property locally and internationally and also brought back the IT software to facilitate this and other aspects of property management.
He says every one of the Rawson Property Group team at the NAR Convention acquired data and tools to be more effective. "This has reinforced my conviction that attendance at this convention is almost essential today for a real estate group continuing to grow, as we are, at around 36 percent per annum.”