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High Demand along with falling listing prices has produced a rise in 3rd quarter transactions for the commercial real estate market in the US. This is the 2nd consecutive quarter that posted gains. Prices of transactions increased as well as the demand for commercial properties. Both of these indicate market confidence is on the rise could this be a sign that the market is on a rebound? View Naples Golf Course Homes for Sale
Transaction prices rose 4.4% on commercial real estate properties sold in Q309 by major institutional investors, according to the MIT Center for Real Estate (MIT/CRE).
The gain marked the first positive price change in more than a year for the Center’s transactions-based index (TBI). It is also the largest increase since before the market downturn began in mid-2007, according to MIT/CRE.
The findings indicate the US commercial property market may have reached bottom in terms of pricing, the Center said, with the price index narrowing the deficit from its ‘07 peak to -36.5% in Q309 from -39% in Q209. Source: http://www.nuwireinvestor.com/articles/us-commercial-real-estate-shows-signs-of-improvement-53994.aspx
The CEO of Deerfield Beach, Florida-based McCabe Research and Consulting watched as the good times in the real estate world went sour – and now that that pain is being felt worldwide, says that there has been a return to a more traditional bulk of investors.
“These markets have all come crashing down once the market understood it had doubled in size, not due to population increases, or job development, but due to speculative flipping by people who had no intentions of ever occupying these units,” he says. “When these things got out of hand, it was musical chairs, and who was going to get caught without a chair.”
“Now the prices have dropped so much that the real long-term investors that have been sitting on the sidelines watching this debacle unfold are re-entering the marketplace, many of them with cash,” McCabe says.
So who will succeed in this new market? According to McCabe, it’s the investors who want to buy low, sell high, and not do a quick flip on properties, but rather hold them for seven to 10 years – or longer. Source: http://www.nuwireinvestor.com/articles/real-estate-consultant-flippers-give-way-to-real-investors-53878.aspx
Investors need to do their “homework” before choosing an investment property. Searching to find a property on the internet is only half of the equation. In today’s market there are too many other variables to consider and the only way to understand these is with time and experience in the market.
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