ExactRealEstateGuide.com

Isaac Toussie, here to offer some thoughts and basic information on the Midwestern real estate market.

It is well established that the cardinal rule of real estate is “location, location, location,” and it is important to bear this in mind when examining new construction in Wyoming.  Because its realty was never known for being a hot spot, the state has weathered relatively well the housing bubble afflicting points further south and east like Nevada and Florida, respectively.  But housing starts and other new construction in Wyoming are about as moribund as anywhere else in America today.  The recent efforts by the federal government to stimulate economic activity through the grant of money has helped a smattering of worthy projects in Wyoming, but may not be enough for the long-term.

Isaac Toussie comments that today signs of stabilization are appearing. It seems that the government stimulus and private entrepreneurs have combined to begin to push the momentum in the other direction. There is still oversupply though.

In the past it was never a hot real estate market, Montana has generally found an equilibrium between supply and demand.  But when it comes to commercial real estate, shopping centers have been a sure profit-maker.  And a novel way of assuring the profitability of a shopping center is to host a movie theater, preferably a modern multiplex operating long hours several days of the week.  After all, movie theaters, possibly more so than even food courts, serve as great “anchors” for sprawling shopping complexes.  They act as reference points where people can meet up and shop – which is to say, generate profit for shopping center operators and owners!  Indeed, today’s typical cinema can host up to half a million guests each year – visitors who are easily converted into impulse buyers, because almost no one just goes to the theaters and then simply back home.

The real estate bubble in Nebraska affected not only houses but condominiums, too.  Just as houses were bought simply as commodities to be “flipped,” or sold at a substantial profit, so too were condominiums treated.  Due to the September 11, 2001 tragedy, not only were enormous amounts of investment dollars poured into real estate as a much more viable alternative to the stock market, which remained in the doldrums for several months, day-traders themselves started moonlighting as landlords, purchasing property with an eye towards selling them to fellow speculators down the pipeline.  Like any bubble or Ponzi Scheme, however, there eventually came a time when no more “takers” could be found and the system collapsed of its own inherently unsustainable weight.

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