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The Other Shoe?

Posted by: Chesley Payne
May 10, 2009
Topic: Consumer Information

This blog is usually focused upon reasons for optimism about the real estate market. I  must, nevertheless, point out some lingering effects of the economic downturn. Perhaps the most worrisome concerns the state of commercial real estate. Banks in the Birmingham, Alabama are facing rough times due to over-investing in securities based on loans securitized by commercial real estate.
 
The article  linked below gives an opinion that one bank, Regions, may have yet to fully experience the down side of the real estate market slump.

http://www.bloomberg.com/apps/news?pid=20601087&sid=akob6j5ubY8E&refer=home


However, I have been hearing anecdotally that traffic in the residential markets is picking up.  This article on Montgomery real estate trends lends support to this possibility.

http://www.montgomeryadvertiser.com/article/20090423/NEWS/90423048

The combination of low rates and prices suggests that now is a great time to purchase a home. However, until some fear is alleviated concerning the economy as a whole, we will be hard pressed to see significant improvement. We need to see a turnaround in the " hearts and minds " of those in the marketplace. The article linked below shows some evidence that this is occurring. 

http://www.google.com/hostednews/ap/article/ALeqM5jmT59dgLTTziX4p9X9MRBRpWZGdQD97RO9CG0

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Massey, Stotser & Nichols, P.C. | 1780 Gadsden Highway | Birmingham, Alabama 35235 | 205-838-9090