Market Trends and Condition

Hey everybody!

I saw an article this morning touting a surge in new home sales in June. A later article today in the Wall Street Journal put that in perspective. It's an interesting lesson in not taking the first good or bad news you hear at face value. Here's the article below.

Home Sales Fail Inspection
By MARK GONGLOFF, Wall Street Journal
7/27/09

Many investors celebrated Monday after June's "surge" in U.S. new-home sales. Alas, it was largely wishful thinking.

As you may have seen from my previous posts I like commercial real estate. I have written about the downslide for commercial properties. Well, good news. I found that the problem (or joy depending on how you look at it) of banks not handling commercial properties is starting to move local.

I just read a GREAT article about how banks in our home towns will be getting more commercial loan problems shortly. This means that they, the local banks, will be motivated to sell.

Here is the article:

Just wondering if anyone in the DG Family is from or close to Toledo, OH I have a bulk pkg I am considering and just wondering if anyone has any investment knowledge of that area. According to Total View housing market has increased slightly there but before I sink my money in this just needed a little insight. Any info would be greatly appricated.
Thanks
Donna

Hello,

My wife and I are considering starting into real estate investing, and we are considering purchasing the Edge but I have a couple of questions before we do.

#1) I would like some opinions as to the saneness of investing in our area. We are located in a terrific area in NW Ohio, that unfortunately, currently lays claim to the highest unemployment in the state. We don't really have the time to investigate properties that are too far from our home as we own a small business.

I have seen other coaches posting articles about the increasingly worsening commercial real estate market.

As I saw on anther post this is often an area that many investors will over look but can be one of the most powerful investment tools for wealth but one that you can take advantage of and create large opportunities.

Hi folks,
I saw this article on MSN and thought I would share it.
Some real estate analyists think that the market will get worse over the next five years. All the more reason to be buying now!

http://blogs.moneycentral.msn.com/topstocks/archive/2009/07/09/housing-c...

I was tooling around on Yahoo and found an article of importance to us as investors. The article talks about market trends for rental vacancies increasing to record levels. This work well with another posting I created that talked about / mentioned commercial properties being an increasingly better purchase. Here is one of the national factors that are creating better opportunities in commercial / rental properties. Keep in mind that the market is not falling apart but rather small incremental moves are being made in the vacancies of real estate properties.

I was just wondering what techniques everyone was using here in Ma. House prices have not fallen as much as other parts of the country, so it is harder to pick up house for less than 50k, which makes it harder to use no money down strategies.

Also, it seems like the technique marketing towards homes listed for over 180 days does not work here either because if they haven't been snatched up yet there has got to be something wrong with them. It almost seems like you have to take advantage of lower-listed homes in the area and lock them up before another investor does.

Texas has seen an 8.6% drop in the values of commercial properties. This is a continual spiral that has been started and the 8.6% drop was just in April. What does this mean to you? Just as DDowd wrote before: Commercial property values are going down but the rents are remaining the same. This means that the cap rate of properties such in Texas are getting greater and greater. In different terms this means that commercial properties are easier to cash flow. The decrease in value does mean though that it will be a little harder to get financing in these areas.

As we know real estate in distressed situations create huge opportunities for investors. Generally, single family residence real estate feels the pinch of low economies then commercial properties follow shortly after. Well, that time for commercial distress is now upon us. Take a look at this report that came out 06/30/09:

National distressed commercial real estate totaled $97.4 billion in early June, including foreclosures, lender-owned properties and those headed in that direction, according to a new report from Delta Associates.