I just read the most discouraging news from The Ground Floor, the web log for the Urban Land Institute.  They are predicting the real estate market to hit the bottom in 2009 and continue to flounder through 2010.  From the article,

"Commercial real estate faces its worst year since the wrenching 1991–1992 industry depression," conclude industry experts interviewed for the report, which projects losses of 15 percent to 20 percent in real estate values from the mid-2007 peak. "Only when property financing gets restructured will pricing recorrect so we can find the floor, and this transition could wipe out companies and people," says one respondent interviewed for the report. 

The report went on to say that if you are an investor planning to purchase (i.e., not sitting still like they advise), focus on the coastal areas with 24-hour cities, buy distressed condos near urban areas, and go green to cut high energy expenses.

This really is an outstanding time for anyone who wants to be a player in real estate investing to pay attention.  With the distressed sales now available, banks and mortgage companies do NOT want to hold on to properties so I’m seeing prices plunge.  And if what The Ground Floor is reporting holds true, 2009 should be even more spectacular for investors.

The Ground Floor has many other interesting articles including a review of Presidential Candidate John McCain’s Housing Resurgence Plan, fixing the nation’s infrastructure deficit with the next $700 billion, and many more.

Photo from Cape San Blas Real Estate Blog.