The good news is that higher priced homes are selling, and many without financing—all cash! This means that these homes will probably never see the foreclosure list.
The other good news is that more and more foreclosures are being absorbed. This means that in order to keep up with the growth in our state of new businesses, the return of hiring, relocations of businesses from other states, and the associated need for housing from relocated employees—we once again will begin to see the need for new single family home developments.
Many developers and homebuilders have already cherry picked existing development and infill sites, and the need for single family land will begin to pick up. Make no bones about it: The growth of single family homes is what drives the need for retail, offices, warehouses, medical, and all other real estate development.
Barring any unexpected impediment to bank lending, the second half of 2011 should see continuing improvement in the commercial real estate development business and the return of tenants to the market place.
Sam Kartalis is president and chief operating officer of Henry S. Miller Realty Services LLC. Contact him at [email protected].
