Since the housing crisis in 2008 that left millions on the brink of despair, the housing market has slowly been marching back to life, and although it still isn’t what it once was, the market now looks much better than it did even a little while ago. That is true of residential real estate, but a new study seems to show that the commercial market is booming, and now is the time to sell!
According to a new study that was recently released by Goldman Sachs, the commercial housing market is making huge strides while the residential market continues its slow and steady climb. This can be seen in the graph below: There can be little doubt from the graph that while both markets are making much needed comebacks, there is a huge disparity between the two. According to Goldman Sachs economist Daan Striven, there could be a few possible reasons for this difference in the markets. One main reason that the markets have changed so much is the decrease in construction after the housing market collapse went at different rates. The residential construction rate fell by nearly 3% while the commercial market only saw a 1.5% decrease in construction.
While the rebounding of the housing market is inarguably good news for everyone, this price increase shows a specific boon to those who have commercial properties and are looking to sell. And if you’ve got a property like this and you still haven’t made up your mind, you’ve probably got some extra time to make the decision. According to the Goldman Sachs report while there will be a slowing of the price increases in the commercial market, they don’t see the price dropping any time soon so get out there and sell, sell sell!