The real estate market sky rocketed between 1999 through 2006 and tapered off in 2007 before completely melting down in 2008. During this time the Near Southside area flourished with a complete face lift. The Fairmont Historic District benefited from the boom like all other areas as it was full of promise. Investors some more savvy then others jumped in early and purchased real estate at much lower prices. Some to the point that they are in a position in which they can dictate large sections of the market.
However the investors that entered the market late and paid higher prices can not receive decent returns. Today's market rents simply can not support these properties that were purchased at the height of the market. Landowners refuse to look at what is occurring in the economy and are dead set on getting what they put into the property. In some cases land owners are not only seeking to break even but make a profit. Although persistence is a good quality one must heed the words of country crooner Kenny Rogers "You have to know when to hold 'em, know when to fold em, know when to walk away, and know when to run." On many occasions the Allen Glater Mund group found ourselves running in search of properties that wouldn't cause us to be immediately underwater from the word go. The investors that need to free up some capital will eventually take their losses. Others may hold out for many years to come only to ultimately break even or lose money due to property taxes, low property appreciation, and other maintenance expenditures over time. The new census bureau may show that the area can no longer receive NEZ incentives due to the large amounts of income that now exist in the area.
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