Existing-home sales fell 9.6 percent in February percent to a seasonally adjusted annual rate of 4.88 million, from an upwardly revised 5.40 million in January, NAR says. The sales rate is 2.8 percent below this time last year. “Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by the problems of unnecessarily tight credit and continuing appraisal problems,” NAR Chief Economist Lawrence Yun says.
economy
Commercial Markets Stabilizing
Commercial real estate markets are flattening out, with modestly improving fundamentals expected in 2011, NAR says. ‘œThe basic fundamental of rising commercial leasing demand, resulting from a steadily improving economy, means overall vacancy rates have already peaked or will soon top out,’ says NAR Chief Economist Lawrence Yun. ‘œThe outlook for the office and industrial markets has moderated with modestly declining vacancy rates expected as 2011 progresses, while the retail sector should hold fairly steady. Still, high vacancy rates imply falling rents.’ Yun anticipates a rise in household formation from an improving economy, which will increase demand for housing, both ownership and rental.
Prepare for the Changes in Commercial Real Estate
NAR research, industry leaders and NAR commercial member brokers and agents agree that the landscape has changed. The current Commercial Connections newsletter focuses on some of the changes in the economy, in real estate use and in changing gate keepers. Read this overview and articles on how to run your business effectively as well as what’s new with NAR Affiliate organizations.
504 Loans – The Good, Bad and Ugly
With the weak economy deterring many small businesses from expanding, demand for SBA loans plummeted: Last year, the SBA approved $3.8 billion in 504 loans, down 28% from 2008 and 40% from 2007. Now, hoping to spur expansion among small companies, the SBA is offering inducements like lower rates and no-fee deals. Demand is picking up again for these 10%-down, fixed rate loans, but if you’re thinking of pursuing a 504 loan, though, there are some strategies and caveats to keep in mind. Read more…
