McKae Properties Real Estate Market Commentary

Year end pressure to sell is compounded by high interest rates and the desire to eliminate costly unprofitable investments appear in the large commercial projects and the smaller projects.  It takes some research to find an opportunity among the offerings.  Hedge Funds, the so called Smart Money of sophisticated investors, have expanded on their bets that interest rates will go higher than they are now.  That bet is levied via short positions in Government Bonds.  A short mean they sold something that they bet will go down in value as interest rates go up. That bet will be a financial reward to hedge funds, but will turn to be a liability and loss to Commercial investors who own commercial property with variable rates or mortgages that are maturing within a short time frame, say 6-months or less. It is well publicized the Billions of dollars in debt that will mature next year for the Office building across America.  There is little in the news that deals with all the smaller transactio

Well Fargo has come to my way of thinking that the rise in interest and the resilience of the public to higher interest rates with their large cushion of cash from the Pandemic will put the FED in a longer period than all expect of high interest rates. Wells further states that the longer period of 8% mortgage rates will have an effect of dipping real estate into a recession. Agreed there are a number of RoadBlocks for 2024 Political Unrest and the Global Economy Influence of Hybrid Work Housing Shortage Artificial Intelligence Labor Shortage Migration Real Estate Armageddon: The economy, interest rates and inflation coupled with large amounts of debt coming due in the Federal Calendar and Commercial Real Estate Supply Chain Logistics and Onshoring Pricing Resets of Cost of Capital Decrease Real Estate Values America's Aging Infrastructure To prepare Home Buyers a lesson in Home Mortgage Selection is highly recommended. Here are some of the mistakes Home Buyers make when selecting