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April 06, 2006
The Other Real Estate Market...
There is a lot more to real estate than residential homes. Glenn Mueller, the investment strategist at Dividend Capital Group, a real estate investment company, recently completed his market cycle forecast for office, industrial, apartments, hotels and retail real estate. His research monitors these property types in more than 50 major markets.
He expects the national average occupancy rates to improve in all five property sectors, but at different rates. Here?? an overview of his estimates:
* Office occupancy should improve by a half percent, while rents may increase in the 1%-2% range.
* Industrial occupancy should increase 0.5% and product rental growth rate of 3% in 2006.
* Apartment should see another 0.4% increase in occupancy producing a forecast rental growth in 2%-4% range.
* Retail occupancy should be flat in 2006 but still produce rental growth of 3%-4% in 2006.
* Hotels' 1% occupancy increase should provide a 4% -5% room rate increase, producing revenue per available room growth of 5%-6% in 2006.
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Poeple Don't forget about Michigan!!! Oakland County is the 4th richest in the nation and the property values have declined sometimes 30k to 50k, what they would sell for in a good market! The premier All Sports Lakes have homes with 70 to 125 ft of waterfront in the 200k price range. This market will not stay like this forever. Check out www.century21today.com or www.realtor.com Waterford and White Lake area
Posted by: Lorrie at April 9, 2006 06:51 AM
Real Estate Dropping
Prices are compared year-over-year by NAR. This is to remove the seasonal effects in home rates. Median prices across the country dropped on the first quarter from last year's fourth quarter of $225,300 to $217,900. This is a fall of 3.3%.
Washington D.C., Los Angeles, and Chicago are just few of the major cities that experienced slight declines.
Gainesville, Florida, Ocala, Florida, Deltona - Daytona Beach - Ormond Beach, Florida, and Eugene, Oregon are the big winners.
On the other hand, Danville experienced most of the drop of home prices. South Bend, Indiana has experienced a double-digit decline.
Condo prices continue to fair less every year. It only gains 5.2% every year. In the West region, condo prices dropped by 0.8%. However, the Midwest had a gain of 0.8%. The regional gainer on condo prices is the Northwest where there was a big 9.2% gains.
Phoenix condo prices had the largest gains for the year at 38%.
Posted by: Mabelle Sese - Real Estate Broker at May 16, 2006 12:18 AM