By now everyone is well aware of what has been going on in the real estate markets. The subprime debt market has had its effects in every industry and most directly on the big financials. The residential real estate market is the obvious point of pain. But recently I have noticed that the commercial markets have started to soften.
What this means is that big developers are finally starting to let go of valuable property. In some areas we haven't seen available good pieces of land at attractive prices for probably a decade. But now I am seeing signs that there will be some opportunities for people who want to develop properties.
The difference between the residential meltdown and a commercial slowdown is that the residential markets are directed by the average home investor, most of which are not that savvy. The commercial market has a lot of pros and REITs that have a lot of cash that they could put to work. What this means is that as things start to become available, I don't think you'll see a "crash" mentality that we've seen in the housing market. The sharks will circle good deals for a while before they get gobbled up. But the point is that they will get gobbled up.
There are deals that will start to appear that will pencil in at nice profits even with 3 and 4 year holding periods. One of the great things about economics is that with every boom and bust cycle there is always another wave of opportunity for people to create new wealth.
Exactly couldn't agree more. I think the investors are circling and starting to show interest. I think in the Spring will be people with equity in there homes selling looking to downsize or upsize. I do think that people are being cautious and until we have a new president won't be doing much of anything. I see it being at least 2010 till things return to normal and in the mean time the commercial investor will carry the load.
We just got a portability tax in FL something everyone wanted so many will move because of that and have been waiting for this.
I agree it's not all doom and gloom but until something else big happens it's in the media for sometime.
Posted by: Orlando Florida Homes For Sale | February 06, 2008 at 06:10 AM