Market Bottoms

Market Bottoms
How does one know when the market has hit bottom? Maybe there will be a small surge. Take care. This could be the “dead cat bounce”. I think most of the markets are at or near their bottom. Some activity is taking place. Neither buyers nor sellers are negotiating the way they were even a month ago. People are counting the days until January 21st.
Market “fundamentals” are important. Faith is more important. Most of us believe that when the new administration comes in things will change for the better. Our beliefs, more that the actions of the new administration is what will change the market direction. For investors who have a definite strategy, based on property performance there has never been a better time to meet goals. Commercial real estate prices are finally in line with yields. Competing investments are yielding less. Vacancies reduce NOI (net operating income). This reduces the value of the property. It increases upside potential however.
Buying properties with high vacancy rates may seem scary right now. People with courage will probably make a lot of money. Concentrate on location. Physical conditions and leasing strategies can be fixed. Location will be critical as the economy bounces back. Cautious users know they cannot afford a bad location.

David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com