It seems that each of us in the U.S. has 19 feet of retail space allocated for our use. Historically we should have no more than 10 feet of retail space per person. So, we are overbuilt by 90%. Not a good sign for retailers or those who own retail property. For the moment retail is pricey.
There’s a realtor in Coral Gables, Florida who takes people around in a green bus to view distresses properties. I heard this on NPR. Seems some folks think that distressed property in Florida is now cheap. Tough call. Economists who study the real estate market think that the price shakeout won’t end until late in 2010.
Another point about Florida is that taxes have gone up. A current study puts Florida at number 11 of all the states in tax burden, up from 40 something. All those new residents need city services. I live in Wisconsin which is 10, down from 3. Don’t get me started on the insurance issues in Florida.
Still the free market is all about how people spend their money. If someone will buy your distressed property then that’s the price of the property. God love’em. FYI I’m not looking to buy in Florida soon.
I saw regular gas was $3.75 this morning. The price of oil is up 85% over the past 12 months. The dollar is down 10%. What else is in the mix to account for the other 75%? Demand? It hasn’t jumped 75% in 12 months. Speculation? I think so. Another, financial bubble about to burst? Probably. Will that be good for drivers in the U.S.? Not if you borrow money from the people who have invested in oil. And, you do.
Sam Zell, a man who has made big money on distressed real estate, thinks hotel real estate is cheap. But, with the high price of gas, the high price of food, and rising unemployment will it be cheap in the winter? Maybe, if you can get financing. Oh, money is tighter now, too. Well, what’s it cheap or expensive?
Ethanol production causes unintended consequences. Big da. What did the Congress and the Bush administration was going to happen when they put a huge mandate on the use of ethanol? Oh, these are the guys who invaded Iraq without listening to their critics.
Cheap or high-priced is a complicated question these days. Things have moved faster than they have in other economic downturns. More appears to be unknowable. People are sitting on their wallets which makes it worse. Risky times.
What do you think? Cheap or high-priced?
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