When it comes to real estate, the housing market burst in 2007, went down, and has stayed at a low level for about two years. While this varies in some parts of the country – real estate in New York seems to be picking up – the next shoe to drop is considered the commercial real estate market. Or, will it? In some parts of the country, the demand for commercial real estate is increasing, while in others, such as Las Vegas, the demand is still low. When it comes to inflation, commercial real estate is considered a stable point amidst the storm.

According to the article linked above, commercial properties protect against real estate, their value keeping overall amounts from dropping lower. The author, in fact, describes them, as a “hedge against inflation” and they also help set the pace against inflation. In fact, those creating a varied investment portfolio are advised to add commercial real estate because of its stability. As far as the real estate itself is concerned, the ability for a property owner to adjust rents over time correlates to economic growth.

Unfortunately, this latter aspect is where the commercial real estate market – and in economy in general – is lacking. The state of the economy, including a lack of jobs and a stagnant homebuyers market, has put pressure for rents to lower to keep up the pace of inflation – or, more appropriately, deflation. Rent, in general, has declined over the past 18 months at a rate quicker than the typical inflation index.

Nevertheless, the author predicts that rent on commercial real estate should outpace inflation over the next few years, as the demand for “goods” will increase the pressure for inflation. The lack of job opportunities, however, means that the consumer has little buying power, and this factor keeps the homebuyers market stagnant. Do you think that the market will improve once job opportunities increase, or will it increase on its own?

The options for selling a home have increased, but having a real estate agent eliminates the work you need to do to sell the property. An article on MSN gives some tips for finding a real estate agent, as not all agents are equal. Some, as the author found out, will end up charging you more money and will price the house higher. Others may have a better idea of the neighborhood’s market. Before you find an agent, do some research. Some of the points for this mentioned in the article include:

• Going to open houses to learn about various local agents. This also helps you get a better picture of what homeowners and agents are charging for selling prices.
• Which local agents have sold a large portion of real estate in your neighborhood?

After you’ve found some potential real estate agents, interview them to see if their intentions align with yours. Ask them about:

• Their approach and method to marketing efforts.
• Do they have any client references?
• Can they refer you to home inspectors for a full examination of the property?
• Will they let you out of an agreement if you’re not happy with services?
• What should I, as the current homeowner, do to make the property more marketable?

The MSN article suggests the approach to finding an agent is much like that of a job interview. Additionally, the article also mentions about selling the home yourself. Although you’ll be responsible for the marketing efforts alone, you can list the home yourself for $300 to $500 in MLS. If you do plan to use an agent, the point the author makes is to never go by personal reference. All homes are different, not all agents are as knowledgeable about each neighborhood, and finding someone who can meet the needs of your home is the most important factor.

The state of tourism and the statistics on housing tell two different pictures of Las Vegas. The former, according to an article published in the Wall Street Pit, is busier than in previous years and expects a three-percent increase by the end of the year. The overall state of real estate in Vegas, however, is still very bleak. The paradigm of a bust, Las Vegas had home prices drop to 50-percent of 2006 home prices, and the average price for a home in the Sin City now is slightly less than a home cost in 2000, inflation not adjusted. The market, however, has been stable for two years.

When considering states with the most foreclosure filings, Nevada comes in first, according to the article linked above, and Las Vegas is the number one city for foreclosures in the state. This number is taken from a percentage of overall foreclosure filings for homeowners: at the moment, 58.6 percent of all residents have a mortgage, and only 15 percent of the state owns a home. While these figures are taken from the present, the state and Las Vegas both saw high numbers for mortgage defaults and foreclosures over the course of the recession.

Commercial real estate, an uncertainty at the moment in many areas of the country, has also hit an overall low in Vegas. Although the casinos and tourist attractions appear to be bustling, the city still has a 24-percent office vacancy rate.

As the article above mentions, Las Vegas appears to be attracting many foreigners and locals looking for a staycation. Considering the state of real estate in Las Vegas – and the state of the economy to go with it – could Las Vegas have a future in catering to a foreign market, which would increase jobs and also the ability to purchase real estate? Or, is the slight increase in tourism masking the state of the local economy?

The relationship between the real estate market and economy appears to be circular and reciprocal: one helps out the other, who responds positively. When neither the real estate nor the economy is in a good state, however, both continue to remain at the bottom: a less of a demand for homes (who can consider purchasing a home when no jobs can be found?) results in a flat real estate market, and a lack of purchasing power keeps home prices stagnant. A recent article from The Epoch Times indicates that the state of both could keep the current economy in a state of recession.

The fact that few jobs have been created as a result of the stimulus package, as opposed to recovery efforts from the Great Depression that created various government manual labor jobs, indicates that the economy is stagnant. With that, is the real estate market. In the piece in The Epoch Times, Alan Greenspan is paraphrased as mentioning that the declining home prices are one indication that the country is still in a recession. And, when you consider the unemployment rate, it has remained around 10-percent for the past year. Only those in higher income brackets have buying power at the moment.

Nevertheless, if the economy was in better shape, real estate would be a buyer’s market. Mortgage rates are low and many properties, through foreclosure, are up for sale at affordable rates. Rather, with a greater increase in unemployment constantly looming overhead, many are afraid to make a significant investment, such as purchasing a home or a car. Instead, the latest trend across all forms of spending is saving and taking an economical approach. Surely, if you can clip coupons to save on your monthly food bill, your home doesn’t need an upgrade for the time being.