2012 Real Estate Outlook: Where We Are Going

2012 Real Estate Outlook: Introduction
2012 Real Estate Outlook: The Rise (1980 - 2006)
2012 Real Estate Outlook: The Fall (2006 - 2011)
2012 Real Estate Outlook: Where We Are Today
2012 Real Estate Outlook: Where We Are Going
2012 Real Estate Outlook: Demand - Willingness
2012 Real Estate Outlook: Demand - Ability
2012 Real Estate Outlook: Supply - Local Market
2012 Real Estate Outlook: Supply - Shadow Inventory
2012 Real Estate Outlook: Conclusion
2012 Real Estate Outlook: Commercial Real Estate

Real estate prices, like all other assets, are determined based on supply and demand.  However, there are components of supply and demand that are overlooked by almost every buyer and seller in a real estate transaction.  We will now cover the entire spectrum focusing first on demand which is comprised of:

1. The Willingness Of A Buyer To Purchase
2. The Ability Of A Buyer To Purchase

Then we will focus on the second portion of the equation, supply, which is composed of:

1. Visible Inventory: Local Real Estate Market
2. Shadow Inventory: The Hidden Supply

Let's begin with the demand, and re-focus on the willingness of a buyer:

Next: 2012 Real Estate Outlook: Demand Part 1 - Willingness