2006 Real Estate Outlook

Author:	Lucas Jones
Source:	Homes Discovered
Date:	April 12, 2006

After the dot-com stock market tumbled, many investors in San Diego decided to put their money into something more solid; real estate.  Fueled by low interest rates and a weak dollar attracting foreign investment, many believe there is now a real estate bubble ready to burst. Some markets are overvalued, especially ones on the coasts.  Prices could drop but continued job growth and population growth should sustain nationwide demand.  Certain areas with strong job markets are expected to continue to grow such as the Miami, Las Vegas, and Phoenix areas. Commercial real estate is dependent on job growth and is also expected to continue to grow as employers need more space, especially in markets with limited room to build such as Manhattan and Washington D.C.  The demand in these places will make lease rates much higher. Growth in 2006 will be slower than it has been due to certain factors including higher interest rates, price of construction materials, hurricanes knocking out certain building supplies, and high oil prices.  Certain markets will continue to grow to all time high's including Southern California, Washington D.C., Midtown New York, Dallas, Salt Lake City, Denver, Atlanta, and Phoenix.

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