What’s going on with the Spring TX real estate market? Is it good, is it bad, is it time to sell, is it time to buy?

Real estate is LOCAL and its fairing better in some cities than in others. The Long Beach CA real estate market is different than the Hoboken NJ real estate market which is different than the Houston TX market which is different than the Katy TX market which is different than the Spring TX real estate market.

Anyway you get the picture. Real estate is LOCAL.

The only real estate market that I am going to discuss is the Spring Texas real estate market because that’s the one I know.

The interruption caused by Hurricane IKE skews our September numbers. Thus comparing September 2008 to September 2007 does not provide an accurate picture.

Instead I am comparing September 2008 YTD to September 2007 YTD which in my opinion is a better representation of what is going on in the Spring Texas real estate market.

.Reference resource: Click Here.

Ever since early 2000′s, real estate is marked by high supply demand imbalances when it comes to commercial markets. The mobility of capital in current financial markets has further improved the conditions for estate developers. The recent loss of tax shelter markets has no doubt drained a huge amount of capital from the real estate, leading to adverse effects. However, according to the experts the commercial state is surely going to boom in few years to come. In the long run, return to estate development will be benefited by real profits, economics and real demand.

In early 2000′s syndicated ownership of the estate markets are introduced. Many people were affected by tax law changes or collapsed markets; this concept is currently being applied to financial strong and powerful cash flow-return real estate. This return of financial strong and powerful economic practices helps in ensuring that the growth of syndication is maintained. Various REIT’s or Real estate investment trusts that suffered huge losses in late 1980′s, have now reappeared as a more powerful and efficient medium for public ownership in the real estate. These can even own and operate these markets efficient and can raise equity all by themselves. The shares in these markets can be easily traded than that of other syndication partnership. These play a vital role in satisfying the desire of the public to own real estate.

The attributes that has been identified as the problems in the recent recession is now been seen as opportunities to improve the future of commercial estate. These estate cycles are now seen as fundamental driving forces in this industry. We recently witnessed a boom cycle in commercial state market. This market is again seeing demand exceeding supply like its previous decades. The introduction of IT Parks and commercial complexes to a large extent has helped in controlling the supply. However, the excessive demand is still responsible for shooting up the prices. If you look back at the estate cycle wave it seems that the supply of new commercial complex will not occur in coming years until it is warranted by the real demand. In some markets, the demand for departments has far exceeded the supply and the construction of new structures has already begun and that too at a rapid pace.

Experts warn Asia’s real estate markets are expected to crash by almost 50 percent in the next six months. Property prices which had primped up in the last two years will nose dive as banks, financial institutions and multinational companies sell property to keep businesses afloat.

Owning to large build ups of bad debt, banks are cutting their exposure to property, leading landlords in Japan, China, India, Australia and other Asian countries to be forced into fire sales if they fail to refinance loans, putting more properties on the market and driving values down further, experts warn.This is when most real estate investors who have been waiting on the sidelines for the markets to tank hope to jump in.

“For investors with money, this is a once-in-a-lifetime period,” Robert Lie, Asia managing director for Redevco told Reuters. Property prices in India which have doubled since 2005 are expected to return to their pre 2005 rates. The Chinese real estate market too is expected to witness a similar fall. Brokerage CLSA and consultants Savills expect average home prices in Beijing and Shanghai to drop 20-25 percent this year, similar to falls in Shenzhen and Guangzhou in 2008.

“Rationally, there is limited room for property prices to fall and most cities will see a drop of 10 percent,” Chen Sheng, vice president of China Index Academy, told Reuters.“But in a market downturn, once expectations worsen, prices could smash previous estimates and even go below the cost (of construction),” he continued.

Governments in both India and China have taken considerable measures to plump up the real estate market. A large part of the country’s stimulus packages have already been diverted to infrastructure growth, banks have resumed lending to developers and greater tax concessions and cheaper mortgages are available to homeowners.