Stormy weather continues for the entire real estate market!
According to Zillow, Inc US home values are posed to drop by more than $1.7 Trillion this year. Zillow is a closely held provider of home price data.
Also on 12-9-10 the firm reported, " The drop in home values pushed more homeowners underwater, meaning they owe more on their mortgages than their homes are worth.
On Dec 24 this year The Philadelphia Inquirer reported that many homeowners, typical homeowners and renters believe that the "recovery" will occur anywhere from the year 2012 to 2015 or longer. This was according to a Harris survey commissioned by the Internet firm Trulia.
"Sellers and buyers are tamping down their expectations fort a swift recovery in the housing market and bracing themselves for a log, slow climb back to health real estate market" said Peter Flint, CEO of Trulia who commissioned the survey.
On the Greater Boston commercial real estate front things are not much better. According to Colliers Meredith and Grew , on DEcember 30, 2010, office building in the city have 6.1 million square feet of vacant space or 15% of the total market. This is for the best of the best space, Class A & B office space.
Let us translate this vacany rate matter into dollars.If the average price of Class A space in Boston is only $50.00 PSF net, net, net this means a loss of income to the property owners of $305,000,000.00 in a year.
No matter how you slice it, the entire real estate market remains in serious trouble.
Bill McInerney
No comments:
Post a Comment