The Tallahassee Real Estate Blog has always received a good amount of its readership from investors in the Tallahassee real estate market due to the fact that we report real market data, not just opinion and hype of the market. Recently, I made a conclusion that an important factor in the real estate market recovery will be the treatment of loans for real estate investors.
With the credit markets tightening and foreclosures and short sales being seen at all time highs, it is very important for our economy that we attract investors into the real estate market. Think about this from a supply and demand standpoint. Tallahassee is growing. More people live in Tallahassee today than they did last year, so ultimately, our need (demand) for homes in Tallahassee is growing. If people move to Tallahassee and choose to rent or they move to Tallahassee and choose to buy, they are affecting the real estate supply and demand curve.
Real Estate Investment Concerns
Real Estate Investors are going to need some attention, and really soon in the Tallahassee housing market. Due to the glut of homes for sale in Tallahassee, we have now started to see pricing pressure (lower rents) in many parts of the Tallahassee home rental market. When you factor in the soaring property taxes and greatly increased hazard insurance rates, you have a recipe for disaster in the investment market.
Typically in any type of market, the consumer will ultimately pay the bill for the cost of a good or service. If material costs go up, the consumer item cost will go up. Unfortunately, there is usually a lag between these events due to competition in the market. Well, right now in the Tallahassee real estate market, that lag is lasting a long time. And it appears that it will continue for several more years.
Some Good News About Real Estate Investment Loans
Apparently, this news has reached the “powers that be” at the Federal Housing Finance Agency (the organization that has been put in charge of regulating Fannie Mae and Freddie Mac). In a RealtyTimes report, it was notes that James Lockhart, who runs the agency, says there’s been some “rethinking” underway on the controversial limits on the numbers of rental properties investors can own if they’re seeking new financing.
Download A Free Investor Report: Rethinking Controversial Limits
Real Estate Investor Bailout
Don’t think that the investors can be overlooked in the loan bailout program without it having a huge affect on the Tallahassee housing market. Investors have seen rents drop and non-loan-related costs go up, meaning they are in more danger of default than the typical owner-occupant. If this section of the real estate market starts to add fuel to the fire (meaning adding to the short sale and foreclosure mess), it will affect property values and sales rates across the entire board. Owner occupants will see their equities dwindle even more, pushing more of them into potential default situations.
The solution is to look at the housing market in its entirety. Do not separate ownership type, but rather loan type and loan amount. Right now, Congress is considering bailing out the auto makers. While I am sure that is very important up in Michigan, housing is a concern in every city and every State in the United States.
 Subscribe in a reader
|
 Subscribe by email
|
As a reminder for those who subscribe to the Tallahassee Real Estate Blog by email, some embedded pictures and videos might not be appearing in your email and you might need to click the title header to go to your browser where all will be visible. Additionally, if you would like to respond (leave a comment) to this article, you will need to “click through” to the blog site to post your feedback.
If you like this Article then please subscribe to my blog through a full RSS feed, or you can
. You will be able to stay informed about the happenings in the Tallahassee Real Estate Market. You can also subscribe to this blog and have it delivered by Email.
;)
;)
;)
Where do Real Estate Agencies stand in the bailout? Good money flung to bad...