With the looming tax increases and spending cuts, the housing sector is bound to experience changes. However, experts have predicted a strong real-estate market in the coming year for the Twin Cities of Minneapolis and Saint Paul.
Industry experts have forecast a relatively strong future for the local retail real estate sector as the investment, industrial and medical markets will continue to hold on to their steady performances that kicked off in 2012, reports the Star Tribune.
Commercial Real estate will especially see a positive upturn in the twin cities as the demand in the multifamily and industrial sector in the cities is strong and is predicted to be steady throughout 2013.
"Our No. 1 goal as a nation should be to restore confidence in both consumers and corporations by getting our spending and fiscal house back in order and creating an environment in which we have certainty. If this happens, I see strong growth in the economy which will also bode well for housing and the commercial real estate markets." Steve Chirhart, TaTonka Real Estate Advisors told the Tribune.
According to Richard Keller, vice president of CBRE Inc., a real estate giant, once the issue of fiscal cliff is resolved, the real estate economy could hit new highs, reports the Tribune.
The New Year will probably be a great business year for the commercial real estate market as leasing and development projects are expected to queue up. If the interest rates and capitalization costs are kept low, sales of invested properties could also accelerate.
On the other hand, the retail and office sectors have been struggling to cope with the economic conditions and if the government fails to reach a conclusion by the end of the year, the economy could slip back into recession. The uncertainty of the condition has been stunting the commercial real estate sector's growth, reports the Tribune.
Major industry players have reflected on the uncertain conditions and have claimed that the confusion about the taxes could lead some important real estate investors to put business aside until the tax changes are completely accepted and understood, reports theTribune.
While some of the pivotal people of the sector are skeptical about the tax reforms, others are taking on a much realistic approach.
