In 2008 I bought 4 houses paid 53k in 2007 sold for 275. Paid 49.5 in 2007 sold for 270. Commercial prices will decline by more than 20 % many residential by more than 40%
If that happens then rents will decline by a similar amount.
Many landlords will have to renegotiate their leases.
The massive unemployment is going to create tremendous downward pressure for deflation.
Watching a 1 acre river front lot in the mountains that a person just inherited from her Grandmother. It was on the tax sale but she step up paid the taxes at the last min. I am hoping she will sell it quickly when I offer her cash.
She thinks there is a cabin on it, there is no cabin there, she has never been to the property. We will make the offer this fall when the stimulus and the extra $600 a week stops.
That’s a broad brush. The Glendale/Burbank/North L.A. and Pasadena market has remained strong. Entertainment business is coming back into the area(s). The actors, actresses, film crews, producers, directors, etc. no longer wish to travel Sunday night to Thursday night, stay in Hotels and breathe the recycled air on the Planes. Some areas will be hit harder than others and some will flourish. The Fed is flooding the system with money and Bond Yields are dismal. Locally, ehere is a ton of money on the sidelines waiting to buy. Your mileage may vary...