Nevada City Virtual Tour

Saturday, November 30, 2013

Highlights from the outlook include

Highlights from the outlook include:
  • By the end of the year, Freddie Mac expects mortgage rates to be around the 4.3 percent level, and head higher in 2014.
  • Inventories remain tight at a 5 months' supply as of September due to negative equity, a declining supply of distressed sales, and a severely depressed level of new construction.
  • Expect the U.S. economy to add less than 1 million housing units in 2013 and around 1.15 million in 2014, significantly below normal levels.
  • Construction employment is 1 to 2 million jobs below trend levels, which is roughly 1 year of non-farm payroll growth at current levels.
  • Expect the ramping up of residential construction to take a while, and while economic growth will improve over the next year, the economy won't be operating at full potential until sometime after 2015.

Monday, November 25, 2013

Home sales in California continued to grow

  • According to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), the share of equity home sales in California continued to grow in September, now making up more than eight of every 10 home sales, the highest level in nearly six years. Meanwhile, the share of short sales fell into the single digits and dropped to levels not seen since January 2009.
    • C.A.R. also reports that non-distressed property sales rose for the 10th straight month, thereby making the share of equity sales in September 85.8 percent, up from 62.7 percent of sales in September 2012.
    • Housing inventory levels improved for the fifth straight month but remained low. The Unsold Inventory Index for equity sales inched up from 3.1 months in August to 3.5 months in September. The supply of REOs edged up from 2.3 months in August to 2.7 months in September, and the supply of short sales rose from 2.3 months in August to 3.8 months in September.

    Monday, November 18, 2013

    Fed Tapering Delayed Until Spring?

    Fed Tapering Delayed Until Spring?
    Source: The Wall Street Journal
    According to economists at J.P. Morgan and Goldman Sachs, they do not expect to see the Federal Reserve’s bond-buying stimulus program tapered until next spring. The $85 billion-per-month bond-buying campaign may continue for the foreseeable future due to the lackluster improvement in the jobless rate.
    Which means you have until spring *maybe* before rates go up again.

    Tuesday, November 12, 2013

    Benefits of Real Estate Investment vs. Stocks and Bonds

    Benefits of Real Estate Investment vs. Stocks and Bonds

    Investing in real estate also offers tax benefits where earnings from investments in CDs, bonds and stocks are taxed. By making deductions from the profit on mortgage interest, cost of property repairs and depreciation, property owners are writing off depreciation of an asset that is actually ascending providing yearly benefits to a long-term investment.
    Most importantly, ownership of property improves cash flow. Subsidizing the investment with consistent rental income puts money in the investor’s pocket, covering the mortgage, repairs and additional homeownership costs.
    Being able to minimize tenant turnover through timely and concise management reflects on the bottom line, maximizing the return on investment overtime.

    Wednesday, November 6, 2013

    Friday, November 1, 2013

    Upswing in Lending for Commercial Properties

    Upswing in Lending for Commercial Properties

    Many U.S. banks are starting to see new growth in commercial property loans, according to research from SNL Financial, which estimated $991.2 billion in total volume as of June 30. The tally is 3.3 percent higher than at the same time last year.
    "More banks are now on the offense — not on defense anymore — when it comes to commercial real estate," said Raymond James Financial Inc. banking analyst Anthony Polini.
    Lending for apartment buildings, offices, retail centers, and industrial properties took a hit when the economy soured but is starting to pick up again now that real estate values are on the rise and credit quality is improving.

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