Tuesday, September 9, 2008

Still Further to Fall in Real Estate

Real Estate in the US is not at the bottom yet. Soon the commercial real estate sector will start to slide. This will effect consumers with job losses and tighter rules on real estate investments. US real estate is not all bad though, the lower prices are starting to attract investors.

Commercial real estate sales in the United States are expected to fall 66 percent this year from $467 billion to an estimated $159 billion. This is because debt, especially securitized debt in the form of commercial mortgage-backed securities, or CMBS, is either unavailable or prices are too high and the terms too strict for borrowers, Reis said.
So far, many of the distressed commercial properties and loans have appeared in Arizona, Nevada, Florida and Georgia - in addition to Louisiana, Michigan and Ohio, areas that were already showing signs of trouble.
Article.