A Daily Shot of News

St. Louis real estate markets continue to suffer as a result of the economic recession that began in 2008.  Residential and commercial real estate markets remain slow, suffering from levels below those seen in 2007 and early 2008.  Although most real estate experts don’t expect to see significant improvements and recovery in the St. Louis real estate markets till the end of 2010 or early 2011, many experts are optimistic that the recent improvements in the lower-end housing markets and the extension of the federal first-time home buyer’s tax credit will spur activity throughout the St. Louis real estate market and provide the momentum it needs to begin a full recovery and return to normal levels.

According to the St. Louis Today, many realtors have noted a slump in the activity in the apartment real estate market, despite the downturn in home sales.  Vacancy rates for apartments rose slightly by 1 percent during 2009, and building owners have reported seeing more renters doubling up, moving in with family, or leaving altogether.  Realtors have also noticed many condominiums being converted to rental units, a practice which is expected to continue well into 2010.  However, St. Louis’s apartment real estate market did fare better than most other markets in the nation, posting a slight increase in average rent from $715 to $769 between October of 2008 and 2009, and only a slight increase in occupancy rates from 86.2 percent to 87.3 percent.  Nevertheless, many landlords and apartment managers are taking extra measures to keep tenants through the use of “resident satisfaction” programs while keeping maintenance and other costs low.

Despite recent struggles in the St. Louis real estate market, many real estate experts believe that the federal tax credit could be an influential factor in giving the St. Louis real estate market the momentum it needs to improve and move a step closer to recovery.  In the last weeks of November, realtors posted slight increases in home sales, attributed primarily to the expected deadline for the federal homebuyer’s tax credit.  However, since the tax credit was extended to for several more months, real estate experts are hopeful that it will continue to spur real estate activity.  Experts have also noted that affordable housing and low interest rates should also serve as major incentives to prospective buyers.

Despite continuing declines in median sales prices in New Haven, Connecticut, recent months have offered optimistic views of the future of the New Haven real estate market due to increasing home sales topping the previous year’s level during the same period.  Many real estate experts have attributed the federal tax credit for first-time homebuyers to the increase in sales.  However, realtors are also quick to point out that it is only the homes in the lower price ranges that are selling.  The luxury home market continues to struggle as it has experienced extremely sluggish activity over the past months.  With the federal tax credit about to expire though, many real estate experts are concerned whether the real estate in New Haven will continue to show the improvements it has made over the last few months.

The New Haven Register has reported how successful the federal tax credit for first time homebuyers has been in spurring activity in the New Haven real estate market.  Over the past few months, New Haven has experienced an increase in home sales, a 9 percent increase compared to that of the same period the year before.  1,517 homes sold last quarter in New Haven, an increase from the 1,390 sold during the same quarter in 2008.  Realtors have noted that most homebuyers are coming onto the market with more confidence and the desire to take advantage of the tax credit.  However, the median sales price in New Haven has declined to $299,297, a 13 percent decline from $344,175 a year before.  Almost all of the home sales consist of less expensive homes catering to first time, entry-level buyers.  Realtors continue to note that the more expensive homes are still struggling to find buyers.

On another note, the New Haven Register has also reported the recent improvements seen in the commercial real estate market.  New Haven has posted a vacancy rated of 10.6 percent, down from the 13.7 percent posted in the third quarter of 2008.  Realtors have reported an increase in the number of tenants looking for office space in New Haven over the past few months.  New Haven is known for having a fairly stable commercial real estate market due to a number of well established businesses and institutions such as Yale University.  However, just outside of New Haven, vacancy rates for commercial real estate have increased slightly, as most businesses tend to stay only in the business sector in the center of the city.

Although the Anchorage real estate market has declined as a result of the economic recession that began in 2008, the declines are not nearly as large compared to that of the rest of the nation.  Foreclosure rates are up and home sales are down, but many real estate experts still consider Anchorage to have a real estate market filled with prosperity.  However, subprime loans are not considered to be the cause of the economic struggles in Anchorage, but it is rather job security that is the major concern.  Most mortgages that ended in foreclosure were caused by a previous job loss rather than the loan being risky.  Nevertheless, many experts still believe that the Anchorage real estate hasn’t hit bottom yet and most likely won’t be ready for a full rebound until 2010 or most likely 2011.

According to the Anchorage Daily News, Alaska foreclosure rates have risen by 36 percent, but experts are quick to point out that that is only relative, with 0.88 percent being the percentage of homes actually foreclosed on.  0.88 percent ranks Alaska with the third lowest foreclosure rate, compared to the 7.32 percent foreclosure rate in Florida.  Almost all of the foreclosures were in Anchorage and the most populated areas of the valley.  Currently, real estate experts are unsure of the future of the Anchorage real estate due to the high volatility of the region’s economy.  Job security continues to be the major concern in the area.  So far, home prices have remained stable and declines in employment rates have slowed.  Although signs of bottom have not been verified yet, most experts believe that the real estate in Anchorage won’t fully recover in the near future.

The Anchorage Daily News also reported that the commercial real estate in Anchorage is also faring significantly better than other real estate markets across the nation.  The Anchorage office vacancy rate is only 7 percent, compared to the 12.7 percent posted for the national commercial property vacancy.  The Anchorage retail vacancy is only 4 percent compared to the national average of 7.5 percent.  The industrial vacancy for Anchorage is 3 percent, significantly lower than the 9.6 percent average for the nation.  Although these numbers are high compared relatively to past Anchorage levels, Anchorage has not suffered as much as most other real estate markets throughout the nation.