If you’re a real estate investor dealing in commercial real estate, then you may want to use caution moving forward in the coming weeks because the Federal Reserve has issued a caution. In today’s article from The Short Sale Gal Kristine Zelazo, we’ll examine this area of concern and how it can impact investors like you.
Why is the Fed Issuing Warnings About Commercial Real Estate Market?
The U.S. Federal Reserve Chairwoman Janet Yellen has issued a formal warning to potential commercial real estate buyers, indicating that this real estate market sector has experienced rapid price increases, which may have created vulnerabilities in this area.
According to the Federal Reserve’s semi-annual Monetary Policy Report presented before Congress, commercial real estate property values “appear increasingly vulnerable to negative shocks as CRE (commercial real estate) prices have continued to outpace rental income.”
The report also indicated that the commercial real estate market’s prices have actually exceeded the peaks that occurred before the 2009 real estate market crash.
According to the Federal Reserve’s congressional report, the “moderate” financial vulnerabilities in the commercial real estate market make it vulnerable to “external shocks” which can arise from global events, such as the United Kingdom’s possible exit from the European Union.
What Does The Fed’s Warning Mean for Commercial Real Estate Investors?
The U.S. Federal Reserve’s warning about commercial real estate market vulnerabilities makes it clear that you should proceed with caution if you’re considering acquiring a new commercial property.
If prices do plummet, this could signal some great opportunities for investors. The danger lies in acquiring a property before a possible market crash, as you could spend a large sum on a property that loses its value.
In addition, if you’re thinking about selling a commercial property, now may be the time to do it, although the upcoming “Brexit” vote could potentially de-stabilize the commercial market in a matter of days.
Currently, the real estate market remains stable, with this market sector seeing moderate but consistent growth.
NEED HELP Getting Started in Real Estate Investing?
There are a number of unique steps and processes involved when getting started in real estate investing, but when done right, you can stand to make significant profits. You’ll have lots of advantages in this regard when you work with a real estate investing and short sale expert like Kristine Zelazo, better known as The Short Sale Gal.
Based in Florida, Kristine works with both buyers and sellers and she is an experienced negotiator. So if you’re an investor seeking to get started in buying short sales and need a great mentor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
To get started with selling your home, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Then, call 786.570.0360.