blockitecture leaderboard

Real Estate Market Won't Hit Bottom 'Til 2009

The Urban Land Institute reports on their new study, which predicts the real estate market will hit bottom in 2009 and 'flounder' through 2010.

"During this period, ongoing drops in property values, foreclosures, delinquencies, and a limping economy will continue to crimp property cash flows.

'Commercial real estate faces its worst year since the wrenching 1991–1992 industry depression,' conclude industry experts interviewed for the report, which projects losses of 15 percent to 20 percent in real estate values from the mid-2007 peak. 'Only when property financing gets restructured will pricing recorrect so we can find the floor, and this transition could wipe out companies and people,' says one respondent interviewed for the report.

'The industry is facing multiple disconnects,' said ULI Senior Resident Fellow for Real Estate Finance Stephen Blank. 'Many property owners are drowning in debt, lenders are not lending, and for many (industry professionals), property income flows are declining. There is an unprecedented avoidance of risk. Only when financing gets restructured will pricing reconcile, giving the industry a point from which to start digging out of this hole.'"

Full Story: Emerging Trends in Real Estate 2009

Comments

building block set

NEW! Build the world you want to see

Irresistible block set for adults when placed on a coffee table or desk, and great fun for kids.
$25
Red necktie with map of Boston

For dads and grads: tie one on to celebrate your city!

Choose from over 20 styles imprinted with detailed city or transit maps.
$44.95
City Plate table setting

New Arrival! City Plates

City downtown cores printed on gorgeous decorative collectible porcelain plates.
$50.00

Stay thirsty, urbanists

These sturdy water bottles are eco-friendly and perfect for urbanists on the go.
$19.00