Archive for the 'Housing Market' Category
The combination of inflation and low mortgage rates usually leads to much higher compounded rates of home appreciation. For owners of property, high rates of inflation and appreciation are welcomed and appreciated. For buyers or tenants, however, the skyrocketing purchase and rental prices are not liked much at all.
Sweeping changes in the nation’s demographic makeup will have profound effects on the nation’s housing industry, according to “Big Shifts Ahead: Demographic Clarity for Businesses,” a new book by authors John Burns and Chris Porter.
They argue that broad demographic shifts will reshape housing in America in the next decade, creating new opportunities for businesses of all kinds. Rising numbers of female executives, affluent immigrants, growing numbers of younger and older workers and a ballooning retiree population will have a profound influence on residential real estate in the U.S. over the next 10 years, according to Burns and Porter.
Successful real estate investing relies on several factors, but as the old adage goes, “location, location, location” is top of the list. But “location” is a broad term, and evaluating the right place to invest your dollars in real estate means identifying the right market in both the macro and micro senses.
How will the real estate market be impacted by Donald Trump’s victory and Republicans controlling both chambers of Congress?
Though Mr. Trump is a real estate man, his policy platform has been largely vague on real estate proposals. Here are my thoughts on how certain real estate issues may play out under President Trump and of their potential impact to consumers.
There are many reasons to invest in Kansas City, MO – one of our client’s favorite markets.
Well known for its contributions to the musical styles of blues and jazz, the city is also well known for its Kansas City-style barbecue. And with over 200 fountains the city has been dubbed the “City of Fountains”, allegedly having the second most in the world, right behind Rome.
Trump has a 10-point lead on Clinton when Americans are asked about which candidate will spur higher home prices. Primary results also suggest candidates weren’t popular in places where housing prices had a strong recovery.
So of the two presumptive major-party nominees for U.S. presidency, whom do you think will be best for housing prices? The self-described successful real estate executive Donald Trump? Or the former U.S. Senator, first lady and U.S. Secretary of State, Hillary Clinton?
Look, I’m going to level with you. I think we’re screwed.
We all saw what happened last week because of “Brexit” (British Exit). The markets are in uncertain territory.
Add inflation and the potential for recession – this situation becomes even more complex.
People are tightening their belts.
You do not need a degree in economics to become market-literate, just an understanding of how local real estate economies work, fluency with the terminology and good sources for local data on sales, prices, values, and inventories. Add your professional expertise and your skilled observations of the latest trends in the charts and numbers and you have a winning formula.
When it comes to real estate clichés, “Location, location, location” has all other contenders (including “Not a drive-by!”; “Cash is king!”; “Is that your checkbook or are you just glad to see me?”; and “Worst house, best street”) beat by a mile.
Not only has it been in use since at least 1926 (according to the New York Times), but it’s utterly and in-arguably true.
Once you learn how to analyze where your market is and the direction it’s probably going, then you can plan your investment attack.
Certain strategies work well in a rising market, others work better in a flat or falling market. Many strategies work in any market, as long as you know your market and adjust your investing accordingly.
Here are some of your options:
We recently reported that home prices are continuing to rise across most of the nation. This has created concern in some pundits that a housing bubble, like we saw ten years ago, is forming again. We want to explain why these concerns are unfounded.
The 2016 housing market is expected to be a picture of moderate but solid growth, with increasing interest rates a minimal concern. Rental investors will particularly benefit as property appreciates, rents rise to record heights and vacancy rates fall.
The housing market is looking more and more attractive for predictable yields as equities continue on their wild ride. “Extreme volatility in the stock market may drive more investors to invest in relatively stable assets like housing,” said Anthony Cazazian, senior VP of national sales and business development at B2R Finance.
Here are four macro trends generally agreed upon by leading housing authorities to take place in 2016. Taken together, they make a solid case for investing in rental housing.
Read more »
CoreLogic released their most current Home Price Index last week. In the report, they revealed home appreciation in three categories: percentage appreciation over the last year, over the last month and projected over the next twelve months.
Here are state maps for each category:
After peaking in 2006, the median U.S. house price fell about 30%, finally hitting bottom in late 2011. Since then, house prices have rebounded strongly and are nearly back to the pre-recession peak.
However, conditions in the latest boom appear far less precarious than those in the previous episode. The current run-up exhibits a less-pronounced increase in the house price-to-rent ratio and an outright decline in the household mortgage debt-to-income ratio—a pattern that is not suggestive of a credit-fueled bubble.
Families are facing much bigger rent checks this year — especially those living in cities in the South and West.
Rent prices have been rising across the country, but rents for single-family homes in these two parts of the country increased the most in the last year, according to a report from RentRange.
“The biggest increases were in the areas where the [housing] market was most depressed,” said CEO Wally Charnoff.