When the home bubble burst, mortgage sales collapsed, both loan origination and into the secondary market. The sleight hand in marketing mortgage backed securities was immediately exposed, challenging the price of homes and real demand. Then the recession ensued, causing demand to dry up and driving down the price of homes in many local markets. A great number of those markets reset back to pre-boom levels, while others recoiled to well below the levels that local economies and incomes could technically support. Most of these markets are off bottom, but have not returned to their “normal” state.
Archives for August 2013
Huge Geographic Differences in U.S. Housing Market
The US housing market can no longer be painted with one brush, as the housing recovery is playing out very differently across the country. Here are some anecdotes gleaned from our consulting team:
Florida on sale to the world.
Investors, investors, and investors. From Russia to China to the UK to Brazil, Florida is attracting real estate investors from all over the world. Domestically, the institutional single-family renters are competing with local flippers, too. Good finished lots are now at peak prices in several markets. The active adult/retiree markets continue to experience strong growth.
3 Quick Ways to Add Value to Your Property
You've purchased that quick-flip property. Now it's time to get the most out of your investment. Real estate players rely on timing, negotiating skills and research to acquire properties that will return a profit. The property you purchase doesn't have to be the property you sell, however. Minor property upgrades can pay for themselves and then some. From the unsightly material clinging to your 60s-era ceiling to the stale air in the living room, minor problems can turn away potential buyers and reduce your profit margin.
A little elbow grease can turn a trouble-ridden property into a hot sell. Try these upgrades if you're looking to add quick value to your real estate investment.
National Economic Outlook (August 2013)
The pace of job growth in July was unchanged from the 1.7 percent annual rate of previous months, but the details suggest an economy that will do modestly better for the rest of the year. Most importantly, jobs in business services were up 3.5 percent from last year.
Business services is one of the largest sectors of the economy, on a par with health care and government, and bigger than retail or manufacturing. Earlier this year it was growing at a 3 percent rate, in the last few months around 3.5 percent; it seems only a small increase but it means that businesses are expanding again.
