Multi-family continues to be at the top of many lists as we close the book on 2012. What has been a somewhat “charmed” asset category of late remains in great demand from both domestic and foreign investors.
The headlines report the excess supply of homes in the face of slack demand in many markets across the country. Not only is there less demand, but also the issue of “effective demand – purchasing power” is clearly playing a role leaving a substantial gap between asking prices and purchasing power.
The more one reads the prognosticators and forecasters, the more confusing it gets. We certainly are in a time of widely different opinions on where the economy is headed and, in particular, where the real estate markets are going.
A look at mid year statistics reveals that the Home Sales Market Sector is experiencing the predicted (by some) double dip while the rest of the real estate market shows signs of improvement. All of this while the economy shows slow and incremental improvements. Clearly, the end of the Great Recession has not arrived for many.
Deja Vu – Spring 1993 vs Spring 2011
Mixed Signals – Strong year end retail sales – Likely double dip housing numbers
The economic impact of the events of the past 36 months is far-reaching worldwide. The consequences are a financial disaster of wide-ranging impact. The systemic changes are still occurring throughout the world and the ultimate impact is still playing out. At a recent meeting in London of the Counselors of Real Estate, the unfolding circumstances were given context by the members from 14 countries in attendance.
As summer arrives for real, a look at how the commercial and residential real estate markets have performed for the first half of 2010 helps provide context for the second half of the year. Global markets continue an uncertain recovery faced with significant risks.
The floodwaters have subsided, the weather has warmed up and tenant showings are beginning to occur more regularly. It is a good time to take a look at the experts’ opinions and indicators in the market to gauge where we are in the aftermath of a tumultuous two-year period for real estate.
Looking at the horizon of the New Year many questions remain in the world of real estate. These uncertainties continue to influence decision makers in all sectors from home buyers to investment advisors.