California Loans News

San Bernardino and Riverside are two cities that could be hit hardest in the next big California real estate market bust.

The Real Estate Information Services (REIS) had analyzed office and retail vacancy rates for 79 metropolitan cities across the United States. All this information would then be combined to come up with one commercial vacancy rate per city over certain periods of time.

San Bernardino and Riverside are two cities in the California real estate market that will be facing a 15.9 percent vacancy rate in 2010, which is a 6.3 percent increase compared to 2008. The values are just below Charleston’s 16.6 percent and above Baltimore’s 15.8 percent.

The Golden State used to be a serious hotbed of investors looking for home and office space, with mortgage brokers and retailers taking up most of the space in the offices. With the collapse of the housing market, everything was turned upside down. Housing values plummeted and the retailers closed shop while the brokers made for the hills and turned to loan modification scams instead. The gloom and doom has a ray of hope shining down in the housing and private properties in the California real estate market, which have started to see a rebound thanks to investors aggressively snapping up foreclosures. This has steadily increased the demand for homes, raising their values a little bit with the passage of time.

This rebound, however, must be taken with a grain salt. Declining commercial, industrial and construction efforts will ultimately starve out jobs, pulling out support for the rebounding real estate market. This will inevitably become prove itself in the California real estate market once the commercial crunch comes in and sweeps away even more jobs in the Golden State.

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