According to real estate expert Adam LaFavre, the real estate industry has undergone significant changes over the last decade with record highs and lows. This has required professionals like Adam LaFavre to reevaluate their portfolios. One major change has been low inventory for low and middle income families due to stricter mortgage regulations. Luxury home owners have also been anxious to sell. Additionally, the concept of equity providing stability has been challenged. Meanwhile, rental demand has far outpaced supply, pushing up rents across the US in what is called the "rental rush". Due to lack of lending, the industry now relies more on cash flow as properties with insufficient cash flow are quickly sold off.

1. Adam LaFavre Examines the Latest
Real Estate Trends in the U.S.

2. The real estate industry has undergone a
series of transitions over the last decade,
observes Adam LaFavre, with a number of
record highs followed by some discouraging
lows. As a result of these tumultuous events,
all professionals were required to reevaluate
the strengths and weaknesses of their
portfolio.

3. In the experience of Adam LaFavre, one of the
most significant changes in recent years is the
amount of inventory available for families with
low to average incomes. Mortgages are much
harder to obtain in 2013 due to more
strenuous regulations. Plus, owners in the
luxury market have been anxious to liquidate
and sell their properties, fearful of a complete
collapse.

4. In the past, Adam LaFavre and his colleagues
put a significant amount of trust in the
concept of equity. However, it was eventually
revealed to be a false front that provided less
stability than once thought. Since then, real
estate professionals have tinkered with their
strategies for investment properties.

5. Meanwhile, the rental market has increased
exponentially for a variety of reasons. According to
Adam LaFavre, demand has far outpaced supply as
of late. Even as developers across the nation open
new units, the number of vacancies has continued
to fall. Across the United States, the so-called
“rental rush” has fully set in. For the first time since
2008, when the housing market crashed, home
prices have reached their highest average ever. It’s
had an unintended impact on the rental market, as
well as affecting the property management industry
on numerous levels.

6. Due to the turbulent conditions and a general lack
of creditors willing to develop or extend new
mortgages, the real estate industry increasingly
relied on cash flow as the target goal. If a property
had insufficient cash flow, it was viewed as a
liability. Adam LaFavre notes that investors were
quick to liquidate these properties out of their
portfolios. As the industry shifts in different
directions, he stays updated on the latest trends for
the benefit of his clients.