Well Beyond a Over Hyped Trend - Housing Data Report for September 2009
The American housing market appears to be recovering rapidly as indicated by this data. It is beyond just a theoretical trend in a leading indicator. Pending sales and closings are validating this standing inventory absorption. Looking back over this data it clearly reaffirms when transactions (Q'2 2008) and then home values bottomed (Q'2 2009).
Prices are rapidly stabilizing in the $50,000 to $250,000 market as new home buyers, but more importantly canny investors, buy up available inventory. This is not going to change with continued Government interest in maintaining buyer tax credits. Price points in markets above $350,000, $500,000 and $1,000,000 are still in flux and will not see firming in the near future, unless individual opportunities make holding or trading sense.
The two fundamental elements are loan availability within FHA lending caps, and at these price points, rentable properties delivering positive cash flow. Fundamentals mean there is better than normal money to be made in rentals. Future appreciation, tax benefits and inflation proofing your portfolio with rental real estate are bonuses.
Investors who can read between the lines have a significant market advantage as they are not driven by media misinformation or skepticism in these numbers. The general media is stirring but they are normally late to economic news. You can take advantage of this as the general market is still shy of real estate.
At Autumn Leaf Investment Association, we work diligently to aid entrepreneurs and businesses to reach their financial/business goals. This is our mission. Everything we do reflects this mission and the values that make it possible.
Our Declaration of Interdependence
Autumn Leaf Investment Association is a dynamic leader in the investing & wealth development field. We are a mission-driven organization that aims to set the standards of excellence for investing. We are building an organization in which high standards permeate all aspects of our organization. Quality service to our Membership and clientele is a state of mind at Autumn Leaf Investment Association. We proudly participate in organizations that strengthen the community and protect the consumer.
As markets change so to does Autumn Leaf Investment Association. Standing still is not an option so Autumn Leaf Investment Association has developed and rolled out several services that Members and non-Members can use to help them sway with the market.
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Notes from the CPA
Bette Jo Benner
CPA
McLean, Rotherham & Co., CPA's
Losing real estate? If you're losing - or under threat of losing - your home or other real estate in a foreclosure, let's get together. as hard as it may be to understand, you can end up with a big tax bill after losing a home or rental property. Fortunately, there are tax strategies that may help to aviod that. The same applies if the lender reduces the amound of your loan.
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Real Estate Industry Watch
Commercial Lending Heading for another Credit Crunch?
Posted: 28 Jul 2009 11:56 AM PDT
An article in the Wall Street Journal is saying that when it comes to the commercial real estate market, history may be repeating itself based on the latest earnings reports from many U.S. banks. Mounting losses from loans for office space, housing complexes, strip malls, etc are heading towards record levels.
The current trend is reminiscent of the saving and loan crisis under the Reagan/Bush administration. According to RBC Capital Markets, late stage delinquencies on commercial real estate loans peaked at 6% at the height of the S & L crisis. And only a little more than 2% of outstanding loans became losses. Currently banks that have a significant portion of capital tied to properties in hard hit foreclosure areas are feeling the pinch in their portfolios.
With so many banks on the edge of trouble, commercial financing may be harder to come by. Some banks have already started to reduce their exposure in the market, while others are just starting to experience trouble in their commercial accounts. Could this be the start of a self imposed credit crunch in the commercial market?
Real Estate Industry Watch
