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Next I’m waiting for a call from the WSJ:
Instead, the major stumbling blocks to deal flow, our survey participants told us, was that the good old days of the past five years are still too fresh in sellers’ minds, while a new found conservatism has crept into the buyers’ minds.
“Twenty-four months ago, there were a lot of real estate investors who were very happy with the purchases they made 30 months ago – now there are a lot of real estate investors who are very unhappy with the purchases they made six months ago. That said, we are seeing a return to sanity and historical norms,” said Mike Carey, national account coordinator for Tranzon Auction Properties in Portland, ME.
Current Market Conditions Don’t Seem To Have Caught Up with Sellers, While Buyers Think Everything Should Be Deeply Discounted
Much has been made of the impact of the credit crunch on the slowdown of commercial real estate investments. But just as impactful as the lack of available credit right now, is that buyers and sellers have not yet come to terms with the the ‘new reality’ and remain at opposite extremes in terms of pricing, which further exacerbates the current deal paralysis gripping the market.
There is almost no investment real estate market at this time, say industry executives and brokers we surveyed for this story. Some 1031 exchanges are getting done out of necessity to meet tax obligations and some institutional properties are trading due to the flow of foreign capital taking advantage of the depressed dollar but the spread between buyer and seller is far too dramatic for “bread and butter” deals to get done.
If you would like to read the full story, please go to:http://www.costar.com/News/Article.aspx?id=13DEAE780258528E13339CE2D3598402
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About mcarey
As National Account Coordinator, Mike works with both our local and national clients facilitating national projects and coordinating communications between Tranzon Auction Properties and the nationwide partners of Tranzon LLC. Mike brings an extensive background in sales, project management and customer service to Tranzon Auction Properties. A licensed sales agent in the State of Maine, Mike is a 1997 graduate of Wheaton College in Norton, Massachusetts.
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