Real Estate Industry Background Real estate is a cyclical industry, reacting to macroeconomic trends such as interest rates, population growth, and economic strength. Real estate soared in the post-World War II economic boom of the s, sank in the inflation-riddled s, rose again in the early s until the depression at the end of that decade, and was prosperous again by the end of the century.
This industry can fluctuate depending on the national and local economies, although it remains somewhat consistent due to the fact that people always need homes and businesses always need office space.
In the United States, real estate has a long history. This practice continued as the country expanded westward, most notably starting in with the Homestead Act, which allowed private ownership of U.
The real estate industry evolved as the United States evolved from an agricultural society to an industrial one. Several shifts occurred during the transformation of the Industrial Revolution. For one, urban centers swelled as people moved to cities to work in factories.
These workers needed places to live, and they had money to spend. In addition, as the United States increased its wealth through industry, banks and other financial institutions stopped their practice of lending only to the wealthy.
Suddenly, the middle class and blue-collar workers were able to secure mortgages.
Home ownership became more common. As cities developed, the need for real estate transactions increased. Office buildings, retail centers, hotels and restaurants, and residential housing boomed, and someone was needed to develop, sell, and manage it all.
Soon, urban sprawl would create the need for suburbs, and with that more housing, town centers, and eventually, businesses. Today, the real estate industry is one of the most lucrative sectors of the U.
Since many professions within real estate are based on sales, success depends on effort. This is an industry for hardworking, goal-oriented people who are always ready to take on more.
However, the hard-charging lifestyle is balanced by some flexibility: Those who succeed in the real estate industry often set their own hours, are not limited by a fixed salary, and can be their own boss. Professions within the real estate industry vary. Brokers and agents lease and sell properties.
Real estate developers buy land, build property on it, and sell it to interested parties. Appraisers must assess the value of properties before they can be sold.
In addition, support staff, office managers, real estate attorneys, loan officers, and others are essential players in every real estate transaction.
The real estate industry is an important element of the economy.
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In the mids, the industry faced major challenges when the commercial real estate market peaked and then fell in step with the recession. The economy has strengthened in the years since, however, and the real estate market continues to rebound.
Whether the economy is strong or weak, people will always need a place to live, work, and shop, and there will always be a steady need for real estate professionals. Their degree of success simply depends on their motivation, geographic location, and the tides of the market.Founded in , the Pension Real Estate Association (PREA) is a non-profit trade association for the global institutional real estate investment industry.
E Komo Mai. With the success of each member as its primary focus, the Honolulu Board of REALTORS®, led by an elected Board of Directors comprised of HBR members, is actively involved in many issues and efforts that foster community and business growth. Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value, for real property (usually market value).Real estate transactions often require appraisals because they occur infrequently and every property is unique (especially their condition, a key factor in valuation), unlike corporate stocks, which are traded daily and are identical (thus a.
MetLife has been involved in real estate since as a mortgage lender, developer and owner. Our Real Estate Group manages a portfolio of more than $83 billion 1 invested in real estate products including commercial mortgages and equities.
Our deep market knowledge across the globe, combined with our organization’s capital and financial strength, enables us to execute your most important.
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