WASHINGTON, DC-To the extent that single-family home trends are a bellwether for commercial real estate (and after the recent economic unpleasantness, who could argue?) Fannie Mae’s January 2013 National Housing Survey provides some good news for both sectors…
…In an interview with GlobeSt.com, Fannie director of economics Orawin Velz says that commercial real estate will gain “from the spillover.” The confidence that comes from seeing your home’s value hike gives consumers the spirit to spend, a direct impact on the retail sector in addition to housing.
“The other factor is the balance sheet,” she continues. “Rising home prices help captial decisions, lending and investment.” Getting to this point in the recovery took so long in the housing sector and, she says, “the commercial sector can only take a little longer.”
She predicts the second half will be a lot more active than the first, given the mixed messages coming from the economic front, mixed messages surrounding the fiscal front. With the Tax Relief Act Deadline looming larger, “There’s no sense of clarity in that area.”