By Juan Cabrera, MBA realbench.net Recent real estate reports generalize about the potential recovery of the real estate market, headlines such as "Housing bottom is close", "Real estate markets start showing reversal in trends", "Mortgage originations are higher" have been quite common in recent months. However most of those reports fail to make the distinction between the two real estate sectors - Residential and Commercial.
Although recent data is showing improvement and even the beginning of the residential real estate market bottom, commercial real estate is at the beginning of the down turn. The lack of distinction in these reports are leading many investors to make the wrong investment decisions; in one hand some investors that have made the decision to start buying real estate again are buying in the wrong sector; on the other hand some investors are missing out on the current once-in-a-life-time low residential property values due to negative news about the commercial real estate markets.
Just like in the stock market sectors matter, investors must dissect current real estate news down to the individual sector. But information and analysis must reach further; the use of real estate investment software is instrumental in properly analyzing potential real estate investments. The right real estate investment software both provide an unbiased view of the state of investment, and take the emotions triggered by the unqualified daily news out of the equation. Equally important is to choose real estate investment software with algorithms and design suited for recent times; real estate investing has changed significantly since the recent crash, thus making old real estate investment software obsolete and inadequate.
The marked contractions in economic activity have forced a correction in the residential real estate market, allowing investors to pick and choose among a vast inventory of record low priced residential properties that seems bewildering in its complexity. Nonetheless, the pricing data can assist as a screening tool to facilitate the selection of the right investment by weighing the implications of the trends reflected by the data. Manual analysis of the data for hundreds of potential real estate investments can be excessive and error-prone; the right real estate investment software best suits this task.
Unfortunately the same is not true of commercial real estate, which is just now in the beginning phases of its decline. Perhaps in two or three years commercial real estate can also be at their lowest historical prices and reaching their bottom like current residential real estate, unfortunately that day in not today.
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