With today’s upside down real estate market where many homeowners are being forced to foreclose on their homes, questions are being asked if commercial real estate has been affected the same way and if businesses will be forced to close their doors due to poor market conditions.
Luckily for those owning mass amounts of real estate the economy is slowly but surely making a comeback in the housing market and some lenders are even giving many foreclosed home owners a second chance at ownership. But the truth of the matter is that commercial real estate was affected back in 2007, like many, when the economy took a sudden hit. This has left many to ask, when will things come back up!
Commercial real estate surely isn’t back at its prime, like it once was in early 2000, but fortunately the market is moving forward in a positive direction and leaving many opportunities available for buyers. It’s a great time to be a buyer since mortgage rates are at an all-time low and the large number of foreclosures is creating new opportunities to purchase high end commercial real estate in cities like Phoenix at an exceptionally affordable price.
For those new to the market, foreclosed properties once belonged to proud owners who unfortunately couldn’t make payments in a timely manner, leaving buyers the opportunity to purchase it at a decreased price. With foreclosed properties it is important to see the home is inspected prior to signing any paperwork, as this helps one avoid any damages that could occur fees in the future.
Even with the prices of property at an all-time low property values are constantly fluctuating, so how do you know when is the best time to buy? There are a few key factors to be aware of, including the economic slowdown, the increase in interest rates and holidays.
If you’re a buyer or investor then the economic slowdown is when you want to act fast and purchase prime commercial real estate in Phoenix. Increased interest rates is another indicator for when to purchase since this will make the acquisition of new property more expensive, leading to fewer customers which eventually triggers a loss in the value of real estate. Finally, holidays have always been a great time to buy, especially around December.
Even though the Phoenix commercial real estate isn’t what it once was, now is an ideal time to be a buyer or an investor. By keeping these few tips in mind when looking at new property for your business, you are sure to find a great deal.
If you’re interested in purchasing prime commercial real estate in Phoenix, Menlo Group Real Estate can help you and your business. For more information about Menlo Group Real Estate, please visit our website at http://www.menlocre.com.