Sunbelt States Show Promise for Real Estate Recovery - Troy Bohlke of NFG says in Forbes.com
source: http://www.forbes.com/feeds/businesswire/2009/10/23/businesswire130560738.html
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BusinessWire - For a long time now, newswires and headlines have screamed, "Foreclosures Soar" and "Millions Lose Their Homes". Despite the continued doom and gloom, however, the Sunbelt, especially Arizona, is seeing definite signs of promise.
"Although we're likely to see the economy worsen with more foreclosures, there is inherent and tangible value in today's market. Some Phoenix area residential properties are already selling at or below replacement costs so these assets won't take much more of a hit. Real Estate doesn't go to zero," states E. Patrick LaVoie with The Westward Fund. LaVoie stated earlier this year that the Sunbelt States, although hit hardest by the recession, were the most likely to recover first.
"Despite the irrational rise in the equity markets, the recession is certainly not over, especially when contemplating the impending credit crisis, 5-year ARM maturities and the commercial catastrophe that is imminent. However, we must not allow the negativity to overshadow the positive facts that exist in specific markets," continued LaVoie.
"While some of the markets that had the highest saturation of foreclosures over the past few years have seen declining rates, new markets like Provo, Utah, and Boise, Idaho, have seen large increases," states James J. Saccacio, CEO of RealtyTrac. "As unemployment rates increase in different parts of the country, it's very likely that we'll see similar patterns develop elsewhere." In April of 2009, the nation's adjusted rate of unemployment rose four-tenths of a percent from the preceding month, to 8.9 percent, while unemployment in the Sunbelt State of Arizona remained relatively unchanged at 7.7, consistently below the national average.
SOURCE: Niche Focus Group
Niche Focus Group Troy Bohlke, CEO, 602-463-3124 troy@nichefocusgroup.com
"Although we're likely to see the economy worsen with more foreclosures, there is inherent and tangible value in today's market. Some Phoenix area residential properties are already selling at or below replacement costs so these assets won't take much more of a hit. Real Estate doesn't go to zero," states E. Patrick LaVoie with The Westward Fund. LaVoie stated earlier this year that the Sunbelt States, although hit hardest by the recession, were the most likely to recover first.
"Despite the irrational rise in the equity markets, the recession is certainly not over, especially when contemplating the impending credit crisis, 5-year ARM maturities and the commercial catastrophe that is imminent. However, we must not allow the negativity to overshadow the positive facts that exist in specific markets," continued LaVoie.
"While some of the markets that had the highest saturation of foreclosures over the past few years have seen declining rates, new markets like Provo, Utah, and Boise, Idaho, have seen large increases," states James J. Saccacio, CEO of RealtyTrac. "As unemployment rates increase in different parts of the country, it's very likely that we'll see similar patterns develop elsewhere." In April of 2009, the nation's adjusted rate of unemployment rose four-tenths of a percent from the preceding month, to 8.9 percent, while unemployment in the Sunbelt State of Arizona remained relatively unchanged at 7.7, consistently below the national average.
SOURCE: Niche Focus Group
Niche Focus Group Troy Bohlke, CEO, 602-463-3124 troy@nichefocusgroup.com
