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Is the Real Estate Market Going to Crash? The US Mulls over its Readiness to Deal with the Potential Market Downturn

Sep 30, 2019

Most of the avid real estate market practitioners have testified the ensuing downturn of the real estate market in the coming years. However, the imposing question is whether investors in the US are equipped enough to address the ramifications of the real estate market crash. Economists are apprehending another financial recession while testifying the global question is the real estate market going to crash in the US.

Lack of visibility on the real-time picture of the real estate market is resulting in misinformed business decisions in this market that are reinstating the global apprehension that is the real estate market going to crash. Get complimentary access to our procurement platform to gain immediate access to such real-time insights into the real estate market in the US.

Factors that are forcing the US to Apprehend Is the Real Estate Market Going to Crash

The US-China tariff war is rendering roofs expensive– While the two global superpowers are engaging in a retaliatory battle of the imposition of tariffs, most of the markets in the US are bearing the brunt, the real estate market is one of them. An unscrupulous imposition of tariffs on the construction raw materials that are imported from China is invariably increasing the prices of these raw materials. Such stark hikes in prices of raw materials are increasing the overall expenditure of the construction of a building that is rendering houses expensive. This is demotivating most of the buyers from purchasing houses and rather explore their leasing options. This is serving as a huge blow for the realtors who are wondering is the real estate market going to crash in the US?

Global Real Estate Property Purchasing Market – Procurement Intelligence Report

This procurement market intelligence report provides buyer and supplier insights to help identify market prices, key sourcing opportunities, spend dynamics, and procurement best practices for real estate property purchasing services.

The Proliferation of e-commerce- Strolling into a store and indulging in a retail therapy is ceasing to be the panacea for the distressed in the US as most of them are resorting to the convenience of shopping on the numerous e-commerce shopping platforms. With the growing popularity of these platforms, most of the established brick-and-mortar retailers are biting the dust and are exploring their e-commerce options as a last-ditch effort to survive in the struggle of the fittest. However, this is resulting in a stark decline in the demand for spaces for stores and warehouses for such brands. Consequently, this is eschewing a lion’s share of the demand in the real estate market in the US.

Reliance on unregulated mortgage brokers- Already carrying the blame of the housing market crash in 2008, buyer’s unrelenting reliance on mortgage brokers who are beyond the radar of the federal and state regulations will herald another potential crisis in the real estate market in the US. Skyrocketing house prices and stringent credit norms are compelling buyers to take loans from unregulated mortgage brokers in the US real estate market. Such mortgage brokers who work with an aim of short-term gains do not have the capacity to stand losses in case of loan defaults. Considering the fact that they are not as much regulated as the banks are, they are more vulnerable to collapse owing to any uncertainties in the housing sector. The currently increasing reliance on such unregulated mortgage brokers in the US is compelling stakeholders question is the real estate market going to crash?

Global Real Estate Agents and Brokerage Services Market – Procurement Intelligence Report

This procurement market intelligence report provides buyer and supplier insights to help identify real estate agents and brokerage services market prices, key sourcing opportunities, spend dynamics, and procurement best practices.

What are the ways to survive the real estate market crash in the US?

From a procurement perspective of buyers, SpendEdge’s inventory of procurement intelligence reports have enlisted sets of best practices that are being widely adopted by the real estate market leaders to defend their place even in the face of the imposing question “is the real estate market going to crash?”

Partner with suppliers that offer integrated services: In the real estate market, purchasing property entails a range of other services that include agency leasing, facility management, and risk analysis. Partnering with individual suppliers to obtain all such additional services will not only increase the buyer’s overall procurement spend but also add to the supply chain management complexities. Against the backdrop of inflating housing prices in the US real estate market, it is prudent of buyers to partner with suppliers based on their service portfolio and their integration capabilities to provide all the additional services.

While strategic supplier partnership is crucial to optimize procurement spend, lack of real -time insights into current supply market scenario results in sub-optimal partnerships. Get complimentary access to our procurement platform to gain immediate access to supplier selection strategies.

Adoption of technology to gain real-time market insights: It is quite evident that with the economic situation in the US resonating with the question is the real estate market going to crash, the current procurement scenario in the real estate market is quite tricky and volatile. In such a situation, buyers are advised to adopt real estate data visualization tools and dashboards such as QlikView and Tableau. These tools are equipped to provide category managers a view of granular-level insights, which help them in identifying suitable properties, select service providers that meet requirements and compare best prices.

Leveraging search-engine-based platforms: Compiling historical data to predict the market price trends is a very tedious and time-consuming process as well as is highly prone to errors. Search engine-based platforms assist in providing information such as capitalization rate, cash flows, cash on cash return, and ROI in a customizable format for buyers, which helps buyers to arrive at reliable estimates for property rentals. They also make data more accessible so that buyers can make better decisions.

Getting information from the market experts is even better when you get immediate access to them. Ask our experts about the real-time trends and strategies you should adopt to stay competitive in the market.

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