If you ask different real estate agents about the state of the market, you will receive a different answer based on area. In Las Vegas, for example, is market is in such bad shape that one out of every 35 homes is in a state of foreclosure; with other cities like Palm Springs, Fla., Las Vegas is becoming one of several new ghost towns resulting from real estate and the economy. Other parts of the country, such as western Connecticut, are seeing home prices reach 2005 levels, however. With this overall national unevenness, can a true verdict be given to the real estate market?

Not every area is going to be the same, and Las Vegas and western Connecticut appear to be extreme trends: the bottom and the top, respectively. Everything else, on the other hand, is in a state of limbo. This recent article from the Inland Valley Daily Bulletin summaries the overall national state: some recovery, but, because of a lack of job growth, not enough.

The Daily Bulletin piece claims that the economy is the driving force behind real estate’s overall recovery, both commercial and residential. The Inland Empire part of California has seen a drop in office vacancies since 2010, but those watching the local markets claim this is a false recovery. The area is seeing fewer industrial vacancies, but this could result from Fortune 500 companies consolidating their facilities to prepare for a second recession. Similarly, although the area has recovered some of the negative net absorption lost in 2008 and ’09, speculative projects have not been financed, either.

The Inland Empire is also seeing a greater interest in retail, but at the same time, because shopping is becoming more of an online ordeal, fewer large retailers are opening new stores. Although not stated specifically in the Daily Bulletin piece, retail growth may also be in the discount sector.

Connecticut real estate continues to be uneven. Just a few weeks ago, we saw homes prices in western Connecticut increasing, while commercial real estate hit a low point with Connecticut Plaza being sold for $12 per square foot. The state of real estate in eastern Connecticut adds to this up-and-down recovery. According to The Day, the average price per home in eastern Connecticut is down to almost 2002 levels.

New London and Windham Counties were both hit hard with drops in home and land sales for the first quarter of 2011, as The Day explains. But overall lower home prices come from multiple sources:
• More lower-priced homes are being sold.
• The homebuyer’s tax credit in 2010 was an incentive. No such credit is in effect in 2011.
• Condo and mobile home sales both increased significantly in the first quarter of 2011.
• Price-wise, the average price per home in eastern Connecticut for the first quarter of 2011 was $182,000; 2002’s average price was $163,000.

The Day article mentions that recovery of the Connecticut real estate market is contingent on the economy: Higher employment will allow more to buy homes. The Day, however, also reports that Connecticut’s economy is lagging. The region’s larger companies, such as the casinos and Pfizer, downsized and laid off thousands of workers each, and the eastern part of the state was hardest hit. New London County, in particular, is behind the rest of the state in job growth.

The effects of job growth on real estate is direct, but commercial real estate is one key to job growth. At the moment, office space is being sold for less – exemplified by the recent sale of Connecticut Plaza, UnitedHealthcare’s former location – while retail is up, both in sales and price per square foot. Incentive for companies to hire more workers – and thus purchase more office space – is the first step for the economy and real estate in general to improve.

We saw two weeks ago that commercial real estate in Connecticut took a hit; prices for office space are expected to stay flat or increase. A large complex, Connecticut River Plaza, only sold for $12 per square foot.

Although Connecticut is a microcosm of the commercial real estate market, investors are turning elsewhere. Retail in small amounts, according to the CoStar Group, has stability and lasted through the recession.

Investors of single-building retail, or standalone real estate, look for quality locations and businesses that cater to all customers: banks, discount stores, drug stored, and fast food. Because all such businesses lasted through the Recession, they are considered economical and like a bond with a high dividend. Retail debt, as well, is low cost.

Think about this for a moment. Office space is faltering, and the lack of higher employment opportunities means that service and retail are expanding fields and office spaces are likely content with the space they have. As CoStar mentions, larger retailers have closed stores or pulled out of larger establishments, such as malls or shopping centers, and a discount retailer moved in.

Unlike the recent office space sold in Hartford, retail space may be going at 10 to 20 times this amount. Convenience store space, for example, is going at about $220 per square foot, according to CoStar.

For investors, retail looks like a sound investment: a low cost debt, more consistency, and a high bond-like return. Nevertheless, the office and industrial aspects of commercial real estate should not be ignored. Without jobs, consumers will not have money to spend.

Startups, however, may be the key to job growth. Newly-created companies mean more office space is needed. Once companies – established or beginning – start needing more office space, investors may be more likely to add this aspect of commercial real estate to their portfolios.

How many of those filing for foreclosure know the proper procedures and are familiar with preventative practices? Not many. Most find themselves facing foreclosure after missing many monthly payments, often as the result of a lost job or high medical bills in the present. 2011 is expected to be the highest year for foreclosures in the United States, and to provide better guidance, the Short Sale Association of America (SSAA) developed a website that provides foreclosure education and assistance.

With a motto of “Uniting to save homeowners from foreclosure,” SSAA created this tool for two purposes. One, the site is a tool to better educate those facing foreclosure and to provide information about counteractive practices against filing. Two, agents in areas with greater foreclosures, such as Las Vegas, need a tool for dealing with distressed properties and for assisting clients.

SSAA provides the following services:

• Information about the effect of default and ways to avoid foreclosure.
• An evaluation tool for learning about foreclosure alternatives.
• Specific recommendations for courses of action.
• An educational tool for the agent to provide to buyers and sellers.

Each state has its own policies for foreclosure. Connecticut foreclosures can go one of two ways. As a judicial foreclosure state, Connecticut either grants a “foreclosure by sale” or “strict foreclosure.” The latter requires no action from the court and allows residents to redeem their properties. The former allows a court to establish a time for selling a foreclosed property.

Unless an individual is provided with these two options (or whichever ones are available in your state), he or she may not be aware of practices of preventing or filing for foreclosure. SSAA, then, offers an educational tool to assist buyers and sellers and to prevent “robo-signing” practices.