Foreclosures have yet to show any signs of decreasing despite the government intervening to help homeowners avoid foreclosure. The commercial sector is starting to really feel the effects of the recession with many small businesses failing and unable to pay rent or mortgages. We expect there will be an abundance of commercial foreclosures to come in 2010. Distressed properties are still the majority of all real estate sales and will continue to be throughout next year. Many investors who have positioned themselves well in this market by liquidating during the real estate boom are anxious to get their money back into real estate due to low interest rates banks are giving them on their cash. However, these investors are still being patient realizing this market will probably not increase within the next couple of years and interest rates may soon be on the rise to avoid inflation.
The overall economy has shown signs of life in the 3rd quarter with retail sales slightly increasing but lenders are still very tight with money and the unemployment rate continues to increase. Some are fearful that there has been a small bump in the economy due to the stimulus money that has been trickling down and the economic rise is not sustainable after the federal money dries up. Real estate still seems to be the best investment in this economy and there will continue to be ample opportunities in the real estate industry during 2010.
Even though there is an abundance of property on the market right now, keep in mind we have yet to find a way to reproduce or manufacture real estate. Call us today at (863) 382-3887 or visit www.HeartlandRE.net for more real estate information.
Tuesday, October 20, 2009
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