Where the real estate market is headed in 2007?

“Some of the prognostications are rooted in 2006's drama. Economists pronounced the national housing boom officially over, fear dominated the headlines, and real estate professionals held their breath, waiting for a collapse.

But the sky didn't fall. The average price of a Manhattan apartment remained above $1 million, and fears of fire-sale prices for new luxury developments weren't realized. But developers see an oversupply of new condominiums flowing into an already saturated market in the first half of 2007. One predicted it will take years to absorb the condos on the market and in the pipeline. A new development marketer cautioned, "We are past the 'build it and they will come' era. That's over." But others are encouraged by bonus money spending, the less than 1 percent vacancy rate for rentals and still-low interest rates. One broker said, "the next six months are going to be phenomenal."

For commercial real estate, the picture is clearer. Hotel and retail real estate are particularly hot, and industry members are encouraged by soaring asking rates and dropping office vacancy rates, which fell to a five-year low in November. "The market hasn't been this tight since the second quarter of 2001," a broker said. Thanks to job growth and continuing rising rents, brokers see these trends holding in 2007.”

2007: A look ahead(TheRealDeal)

Comments

just stumbled on your good blog. here is a must-see: http://www.harlemluxury.com