Subscribe Via RSS

Posts Tagged ‘Economy’

Beyond the Media – National Housing Values


The housing market has been fighting some particularly strong headwinds. We have unemployment hovering at the double digit levels, disruptive appraisal requirements, more challenging loan underwriting and in some areas, foreclosure or distress sales exerting their negative influence. Despite all this, the overall results for 2009 were not as devastating as the media would have you believe. Here are a few points to ponder:

1. While falling values predominated across the country, there were only three states where values fell by double digits. Many other states saw only fractional or small declines and a few even saw nominal appreciation.

2. The financial news media likes to focus on the very significant rebound in the stock markets last year yet only rarely reports that over the last 5 or even 10 years an investment in the S&P 500 has gone nowhere. Conversely, all but 6 states have shown appreciation in home values over the last 5 years with many exceeding 20% and a few even totaling over 30%.

3. Over time, home prices in all states have risen at average annual appreciation rates ranging from the high 3′s to over 7.5%.

Subprime delinquencies fall for the first time in 4 years. Subprime mortgages are simply loans that did meet Fannie Mae, Freddie Mac, FHA, or VA standards.  The massive onslaught of subprime delinquencies was one of the main culprits in our housing slump.  So it is great news that for the first time in 44 months, delinquencies bucked their trend and actually improved to the best levels in 2 years.

With Unemployment decreasing, delinquencies falling and home prices increasing, this could shape up to be a much better Spring/Summer housing market than last year.

Today’s housing market represent an opportunity that we will most likely never see again in our lifetime. Don’t get caught up in what you hear in the media, real estate is a long term investment and over time you will see positive growth.

Share

Will The US Remain A Global Economic Leader?


As I talk to friends and clients alike it seems pretty obvious we have all started to come to the same conclusion: we have witnessed the peak of this country’s global economic leadership. Sad but I believe it is true. That peak happened at the end of the Great Recession because it signaled our country’s attitude toward the creation of value: financial trickery. That’s not sustainable or responsible behavior.

Read the rest of this entry »

Share