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The Buying Opportunities Are Coming Back

With the slowdown in the economy, values will not rise so fast and extended loans will be maturing with little opportunity to refi.

By Joel Ross | Updated on September 05, 2011

More buying opportunities are coming soon. As the economy continues to slow and as unemployment stays high, there will be more and more owners of real estate who find that while things are better, and they got an extension of their mortgage, they are still struggling.

Many of those extend and pretend loans will be maturing in the next year or two. For retail it is going to be a long struggle to raise rents as consumer spending remains restricted. While office space is leasing up in some major cities, a slowdown in hiring is going to cause a slowdown in space expansion and that will lead to an inability to raise rents as much as hoped. Plus corporations are back into a cost containment mode now and for the foreseeable future. Multi is one area that things should remain good. There will continue to be pressure on house prices as the various government and legal actions drag out the foreclosure process far beyond what is good for the economy or for homebuilding. Even with historic low rates, there are not many buyers of houses since getting a mortgage is very difficult and continued employment is now more dubious for many. A lot of former homeowners have learned the house prices decline as well as rise and that owning a big house is not the wonder it was sold by the politicians to be.

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