Real Estate Pros more pessimistic about economic recovery
Real estate professionals are less confident the industry will improve in 2010.
A quarterly survey by LoopNet Inc. (NASDAQ: LOOP) found only 50 percent of respondents expect the volume of commercial real estate transactions to rebound in 2010. In July, 66 percent expected a 2010 recovery.
The survey was conducted with more than 1,000 real estate brokers, investors and owners and was conducted in late October.
Nearly half now believe a recovery will come in 2011 at the earliest and nearly 20 percent say it won’t occur until 2012.
Other highlights:
• 53 percent believe prices for commercial real estate have not hit bottom. The rate is largely unchanged from July, when 52 percent said there would be more price declines. Most believe prices will hit bottom in the second quarter of 2010, though 10 percent said it won’t happen until 2012.
• Debt financing is the biggest barrier to a recovery, followed by unreasonable asking prices.
On the Internet: http://blog.loopnet.com.
