AustinRealEstate's Blog

Everyone knows that foreclosures have been running rampant in the residential corner of the real estate market. Homeowners simply have no way of paying their loans and so lose their property. It’s a well-advertised fact that you would have to be shut off from society not to know. But, what about the other parts of the market? What about the retail market?

Sadly, it too is experiencing a considerable amount of difficulty. Builders and business owners - large and small - followed in the past the booming developments, constructing strip malls and similar public structures wherever the latest flood of homes had been erected. Now that the home market is stagnant, so is the retail.

Companies like Linens n’ Things and CompUSA are bankrupt or on their way. And small mom and pop stores are rapidly closing down. The strip malls are being left vacant or nearly so. Those stores that remain have to deal with a drop in foot traffic, relying on devoted regulars rather than new customers lured by glances through windows while completing other errands. Even restaurants have taken a hit. The once invincible industry is crumbling just as all the other ones around it are.

The retail side of real estate isn’t talked about much, but it should be. It is just as affected by the economy as the residential side of real estate and in fact, likely directly affects the homeowner. When businesses stop making money, mortgages stop getting paid. Closing storefronts lead to foreclosed homes.

I hope that you are weathering the recent declining market in decent shape.  It shouldn't be too long before we see a small recovery.

Joe

Austin New Loft Builder | River Place TX Homes