In an article by Trevor Baker written in Oct 2009, he wrote how several ground breaking skyscrapers can signify a downturn in the market. Most notable examples were the “Empire State building, which was finished in 1929, didn’t achieve full occupancy for 40 years;” The Sears Tower in Chicago and the Oil Crisis in ‘74.
To add on to the latter, there was the condo crash after the market topped. Perhaps high fueled markets in the 70s and several years ago also fuels high stakes projects. These projects take time to develop, get financial investment and find buyers. Sometimes it takes long enough that the markets that drove these projects run out of steam. Boom markets cannot continue to maintain their capacity, what comes up…
So what’s next? There’s a lot of new construction housing along with resales and distressed properties. Many people are finding themselves to be landlords out of situation and not choice, trying to wait out the market before they sell.
Is it a good time to buy or invest? Property flips are still occurring frequently, although the game has changed so much, it’s not what you see on tv. The Dow hit 10k again, properties will slowly come back as well, and it’s just a matter of time and patience. Rents are currently strong, relative to desirability, location and amenities.
You can read Baker’s article here: http://preview.tinyurl.com/yg86zk3
Except for excerpt taken from Baker’s article.
Sherwin is a REALTOR® in the Chicago & Suburban area with @properties. Questions can be forwarded to Sherwin Sucaldito
”Soaring Towers, Down Dollars” by Sherwin Sucaldito is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License.
Based on a work at Realty Evolved
