Portland
Oregon Real Estate - Live Green...Live Well!
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Patrick
Smith, MBA, AHWD
Eco Broker Certified
503-421-3824
Licensed in the State of Oregon
CONTACT PATRICK
4001
NE Halsey Street, Suite 100, Portland, Oregon,
97232
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Is the Portland Commercial Real Estate Market Headed for Disaster? Over the past several months we have heard nothing but negative news about the residential real estate market on a national level. And, while I have reported in the past that the Portland real estate market has faired relatively well compared to other parts of the country, it is no news to anyone that our real estate market continues to remain stagnant. It is not as though our government has not tried to stimulate buyers who have been sitting on the fence to make the decision to purchase a new property: Dropping interest rates to their lowest levels ever while also offering up to $7500 to first time home buyers in the form of a tax incentive. Couple these stimulus incentives with lower real estate prices and eager sellers and it simply makes sense to purchase Portland real estate now!
However, prospective buyers continue to sit and wait, and wait, and wait. But for what? Are interest rates going to go any lower? Are residential real estate values going to drop any more? Quite simply, I don''t know but it does appear that property values have stabilized in recent months and may not go down much more. So, what happens if the Portland residential real estate market and the economy as a whole do not improve soon? What does that mean for other aspects of the real estate market?
Some are predicting that the commercial real estate market will be the next to crash. Afterall, the deeper our country goes into recession, the more people who will be laid off from their jobs, the more businesses will cease operations, and the greater the likelihood that commercial properties will begin going into foreclosure. Although the Portland real estate market has slowed dramatically for both residential and commercial sales, it is not all doom and gloom. Just as buyers in the residential market are being cautious, so are those in the commercial real estate market.
There are those few savvy investors out there though who continue to support both classes of real estate markets. I continue to see investors who are making as many purchases of both residential and commercial real estate as they possibly can simply because they know their investments will pay back positive dividends within just a few years. Afterall, we are already entering into our third year of a down-trending market and rarely has such a market lasted more than four to six years.
While the commercial real estate market in Portland may be lagging behind the residential real estate market trend, it is still a fantastic investment opportunity!
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