After the $700, or $850 Billion dollar bailout, what's next? What's in store for the real estate world.
Sadly, not much. Don't expect a return to the former, very abnormally high volume residential real estate market. It's over.
The commercial market is expected to see some major bumps in the road especially in the big city office property sector and the overall retail "malls."
I'm of the opinion of what you now see: is what you are going to get, and for some time.
Sluggish, slow and tediously painful for those who have never seen a "recession" climate. ( a general falling off of business activity.)
After having the same national mortgage type banking system for over 200 years it is going to take some time to find out what the "new system" is. No one knows.
Seventy five percent of all mortgages today are now originated by the US government: Fannie, Freddie, FHA, and VA! In case you missed it we have been advised expect more bank failures.
By next Spring (2009) we might see the beginning of the "new beginning. One thing is clear: get ready for tons and tons of time consuming "red tape" as a new bureaucratic system is developed and implemented.
Property will still change hands: buyers will buy and sellers will sell. I predict that prices and volume will be much much lower. I believe we'll see some major changes in the entire real estate brokerage sector.
Hang in, hang on, light candles and start saving. That rainy day is here for a while.
Bill McInerney
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