Is there any light at the end of the tunnel for the overall U.S. housing market? Even though we have not experienced as big a hit locally, the housing problems in parts of the U.S. affects us all.
Most forecasters agree that both existing and new home sales and prices will bottom out in the second or third quarter; that because of a relatively healthy underlying U.S. economy. The National Association of Realtors recently reported that existing home sales and prices would stabilize in the second quarter and rise throughout the second half of the year.
According to the NAR's chief economist the slowdown has never been about the fundamentals of the economy. Consumers have the means to buy but they lack the confidence; once they see sales and prices leveling out they will feel better about getting back into the market. The number of financing options helps and tighter underwriting is exactly what we need in order to restore public confidence.
Commercial real estate continues solid throughout most of the U.S. as has been the case locally. Yes, there are some empty buildings but new building continues and there is interest on the part of investors. Just like home buyers I find that commercial investors and end-users are equally cautious and willing to sit on the sideline until they get the best deal possible. The economy is still growing, businesses are still investing and consumers continue to spend - all positive for commercial property owners. I find that most commercial investors look for cash flow rather than appreciation and who can blame them?
Multifamily would seem to be a good sector in which to be invested; one in which you would benefit from the housing slump because buyers delay in taking the leap into ownership. The problem is that more home sellers are turning to renting when they can't sell so that affects apartment and multi-family unit rentals adversely. Be careful about jumping into the rental game; do your homework.
Overall I think 2008 will be a solid year; robust or spectacular no, but sufficiently positive.
We had a bunch of snow this week so all the trails are greaaaaaat! Go to the link below for trail reports and come on up and have some fun; do drive carefully....and have a very Happy New Year!!!!!
http://www.haywardareachamber.com/snowreports.html
Life Is Good...Enjoy!
Gary Nathan and
Amanda Mavis
Woodland Developments & Realty
15617 Railroad Street
Hayward, WI 54843
715-699-4040
nathan@cheqnet.net
http://www.woodlanddevrealty.com/
http://www.haywardwaterfront.com/
