Residential Real Estate

Last week, my brother sent me a link to a Yahoo.com news story that announced what several of my clients have been predicting:  "Homes being dumped on the market at the end of 2010; beginning of 2011 so as to allow the banks to liquidate their REO inventory quickly."

I, myself, have resisted going after residential homes/condos for fear that when this does happen, I don't want to be the sucker that purchased a property far above the "dumping" price.

Here is the link so you can see for yourself:
http://financiallyfit.yahoo.com/finance/article-110858-6830-2-tips-on-buying-a-home----at-a-100000-discount?ywaad=ad0035&nc 

Now, I am all for Banks getting back to lending.  They seemed to have taken the "Stimulus Money" and ran with it.  As we all know, they are NOT lending -- which was my understanding they were supposed to do.  But, maybe with the banks (specifically FreddieMac and Fannie Mae) unloading the thousands of homes/condos that are filling their inventory at $100,000 less than the foreclosed price, will help jump start the bottom of the housing sales crisis.

As a fellow American, I expect, as you do, instant gratification.  This recession/depression should have been over a long time ago.  Whether your slant is to to blame Republicans or Democrats, neither has done enough to satisfy us instant gratification Americans.

But, unless American workers get back to work, there will NOT be the magnificient recovery we are all anticipating.  Corporate America doesn't want to pay Americans a living wage, foregn countires are underpaying employees so as to undercut the American dream, and American workers who won't work for less are the losers.  By the way, if Americans can NOT earn a living wage, they can NOT buy homes! (FYI.)

So, even dumping these REO properties, who -- other than investors -- can buy a home if the American Buyer doesn't have a good paying job; can't get a loan because the banks have put the brakes on lending, and, essentially, don't qualify because they let their last over-paid for house go back to the bank?

And, unless this cycle is brought to an end, home prices will continue to decline -- even with the "dumping."

Oh!  And with this continued decline in value, commercial real estate will decline in value because right here in Las Vegas, there is so much vacancy in office, industrial and retail, that they can't even give the space away for free -- even if they thought that would improve their properties financial outlook.

For Information about Las Vegas Commercial Real Estate, RE Investments, or Commercial Property, contact David Howes at: david@davidhowes.net