The accounting firm of Ernst & Young recently polled 55 U.S. Real Estate Fund Managers to get their view on the real estate market for the next year or two. The results of the poll are informative if you are planning to allocate resources to real estate in 2010 or 2011:
Some of the highlights of the U.S. poll results:
The majority of respondents anticipate soft U.S. employment numbers throughout 2010 leading to a combination of declining rental rates and declining occupancy levels in the U.S.
Capital markets will open slowly throughout 2010 increasing the availability of debt and equity capital.
Eroding real estate fundamentals will put downward pressure on valuations during 2010.
The banking community is expected to increasingly start taking action on maturing real estate loans through sale or foreclosure.
The overwhelming majority of respondents expect greater opportunities to acquire real estate at distressed prices at the close of 2010 than in 2009 as bid ask spreads are expected to narrow and transaction velocity increase.
Not a very optimistic outlook for 2010 for property owners, but it looks like opportunities for property buyers.
To view the report go here.