Tuesday, October 14, 2014

Uncertainty about Real Estate, and About Everything Else

I noticed an article about single family home prices moderating in major markets:


http://www.marketwatch.com/story/house-prices-see-widespread-slowdown-in-july-2014-09-30

The Recovery from the Great Recession has not been as robust as many hoped. Why is that?

commercial real estate, economics, growth, recession, real estate, The world is a much crazier place than it used to be. While the U.S. is stable, and creative, and productive, the international environment has produced not one hot spot at a time (like the Cuban Missile Crisis), but dozens. Where wars used to be fought with armies in uniform, now they are fought with populations, social media, weather, economics, and diseases.

So what does that mean to an investor in real estate? Two things.

Volatility. The ups and downs are more upper and downer.

Stable economies (the U.S.) are a far better bet for investing, and real estate is a good option. Commercial real estate presents properties for businesses to use, and business in the U.S. is not going away.  Hold on to your hats, though. The investing ride is not going to be any smoother.

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