John Maltz: industry should focus on positives of RE market.STOP Looking at the negatives and start looking at the positives of a real estate market which gave up little ground during the two years in which the New York metro For the region, see . Metro New York is a free daily newspaper in New York City started in 2004. Its main competition is AM New York, with which it practices many of the same distribution and marketing strategies. market experienced 9/11, rising unemployment, the aftershocks of a stock market bubble A stock market bubble is a type of economic bubble taking place in stock markets when price of stocks rise and become overvalued by any measure of stock valuation. The existence of stock market bubbles is at odds with the assumptions of efficient market theory which assumes , a national recession, and two foreign wars. With the worst behind us, our real estate market is now poised to make a major move. Why? During the past three years of shock and aftershock af·ter·shock n. 1. A quake of lesser magnitude, usually one of a series, following a large earthquake in the same area. 2. , the micro-cap and small-proprietorship businesses in the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of area have been becoming lean, more efficient, and learning new ways to compete in their business environment. Further, many have been purchasing their business properties so as to form a stable base for future growth. This bodes well for job retention and industry growth when the national and world economies begin to grow once again. 'Prove it" you say! How's this for proof. The New York metro area has seen user-occupied industrial and commercial properties of under $20 million rise in value by up to 100%! "The future looks bleak," you say. Rising household debt and unemployment is endangering consumer spending, the economy is shedding jobs as corporations try to improve their bottom line, and we export not only manufacturing but also white-collar jobs faster than they are being created. If that were not enough, the possibility of deflationary cycle looms which would dampen already anemic capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and the stock market appears poised to' collapse once again as future earnings fail to support lofty PE ratios. My response; your negative thinking is searching for support in self-serving economic statistics. The unemployment rate is creating elasticity in the labor force which is allowing companies to retain experienced workers at rates which they could not afford in the 90's. The growing budget deficit is providing the foundation for a new economic expansion. The Internet has not died but is becoming the backbone of a business model which is creating a productivity fed deflationary cycle similar to the one the United States experienced after WWI WWI abbr. World War I WWI World War One , one of the fastest growing economic periods of our nation's history. The housing and construction boom, coupled with population growth fed by immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. , is now the envy of Europe. The constant flood of new tech and bio products will continue to create high-value jobs and growth. The only negative I can think of is really a positive for the New York area. The tide of economic growth will not lift all ships and areas such as New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. with its talent pool, infrastructure, and intellectual capital will receive the lion's share of the benefits which will directly translate into real estate value. |
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