Sunday, March 27, 2011
Many Reasons Why Real Estate Market Still Slow
There are a lot of reasons real estate hasn't been moving so well the past 18 months. By some accounts, commercial/investment real estate transactions in 2010 were off some 90 percent from the previous year. Many reasons: availability of credit, buyer financial situation, tenant instability, and so on. In the residential market, many of the same issues have been present. An Ohio newspaper has a piece this week on home sales, the many ways sellers have worked to upgrade their properties so they will sell faster, and some of the impediments that continue to pop up. We are seeing an uptick in commercial/investment movement in the past 60 days, and that is a good sign. But it is regional. Not all locales across the U.S., or even around the world, are positive movement. It is a watch and wait economy. But savvy buyers who are willing to snatch up the right property at the right price will do well. That means jumping in and writing a contract and not being hesitant to pull the trigger. For sellers -- no matter whether they be commercial/investment or residential -- it means being realistic about the selling price. Far too many sellers (and their agents) still have an unrealistic view of where a property should sell. Its about the numbers folks. If it doesn't make sense as a buyer, move on. There are too many opportunities out there (not the first time I have written those words). If you are a seller, make sure your price is realistic, and your agent (assuming you are using one) is being straight with you about the market. Things are improving. But slowly...
Posted by Brent Greer at 2:41 PM
Labels: location commercial investment real estate selling buying pricing credit prudential commercial