Vacancies are predicted to lower in the office sector, industrial real estate, retail and multifamily rentals over the course of the next year, and rent is forecast to go up 3.4 percent this year.
The expected vacancy rate for commercial real estate in 2011 is believed to decline from 16.5 percent to 16.0 percent for the office sector; from 14.2 to 12.9 percent for industrial real estate; 13.0 percent to 12.9 percent for retail and from 5.8 percent to 4.9 percent for multifamily rentals, according to a report by the National Association of Realtors (http://www NULL.realtor NULL.org/press_room/news_releases/2011/02/commercial_rates).
This is encouraging news for potential Houston real estate investors, and the fact that rent is predicted to rise, is positive news for the next year.
"Rising apartment rent in combination with rising oil prices could push the overall inflation rate beyond a comfort level, which could then force the Federal Reserve to raise interest rates later this year or early in 2012," NAR chief economist Lawrence Yun said.
Houston real estate buyers will have to keep a close watch on the market, as these projections will have a big impact on decision making over the next 12 months.
Commercial vacancy rates declining, rent rates are increasing
Experts say drug ring bust could make almost a dozen Houston properties available
A large-scale bust of 15 suspected members of a nationwide drug smuggling operation may result in 11 Houston real estate parcels going on the market if their forfeiture is approved.
In addition to the 11 pieces of real estate, authorities are looking to seize $40 million and several cars. The 15 people were charged with money laundering and conspiracy to distribute cocaine and marijuana.
The U.S. Attorney for Texas' Eastern District, John Bales, told television news station KYTX that the group operated on a national level.
"These folks are charged with conspiring to distribute large quantities of cocaine and marijuana throughout the U.S.," he said. The Department of Justice also told the news source that the group had been operating in partnership with Mexico's Gulf Cartel since 1995.
KYTX also reported that 80 kilograms of cocaine and 663 pounds of marijuana were seized.
The real estate owned by those accused in the case could go up for auction by the government, according to experts, if prosecutors secure convictions for the defendants.
Study finds fewer homeowners heading for foreclosure
Credit demand and the rate of delinquency in mortgage loans fell off at the end of 2010, according to TransUnion, marking the fourth consecutive quarter in which those statistics moved in a positive direction.
However, a slowdown in the rate at which delinquency rates dropped is a concern, according to TransUnion group vice president of the U.S. housing market Tim Martin.
"Although the increase in January's consumer confidence index is good news for the consumer as well as the fourth quarter GDP number of 3.2 percent, real estate prices …. have been consistently falling since the end of second quarter. What we hoped was a temporary third quarter price adjustment due to the ending of the home buyer tax credit appears now to be more systemic," he said.
For those interested in Houston real estate, it may be encouraging to learn that TransUnion's data shows the state delinquency rate at 5.19 percent, below the national average of 6.44 percent.
The continued stabilization of the market, overall, must still be considered good news for real estate professionals, other analysts say.
FHA & Down Payment Assistance Update..More people can qualify
FHA and Down Payment Assistance Update :
The California Federal Judge has ruled in favor of the Down Payment Assistance Programs. This is definitely Great news especiallay since Hud has been trying to have the Down Payment Assistance programs ruled against by the Federal Judge, however, the Judge has ruled against Hud and for the Down Payment Assistance programs. Hud has now been stopped from ruling against the DPA’s permanently, Safe at last!.
Another issue that is good for buyers and was approved is the FHA Loan amount has now increased to $271,050.00 for Harris and surrounding counties. This will give buyers more options when deciding on which loan option to take FHA, VA, or Conventional.
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