"The credit crunch has hit the commercial real estate market," was the explanation from NAR chief economist Lawrence Yun.
Investment rose 39 pct in 2007 to a record 427 bln usd, up from the previous record 306.8 bln in 2006. The NAR forecast for 2008 expects a 30-40 pct investment drop, erasing all of last year's increase.
The investment cycle is turning, said realtor Patricia Nooney of St. Louis. "It appears investor confidence has declined, and some private investors have had problems obtaining financing." With economic uncertainty growing, "transaction volume is likely to decline," she said.
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