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Posts Tagged ‘Value’

Beyond the Media – National Home Values


Every once in awhile we need a little reminder to fight off the bad news on housing. Here’s a quick one.

The housing market continues to do battle with strong headwinds. Unemployment hovering at the double digit levels, disruptive appraisal requirements, more challenging loan underwriting and in many areas, foreclosure or distress sales exerting their negative influence. On the bright side, for buyers, lower prices combined with historically low interest rates has pushed true affordability to record levels. Here are a few other points to consider:

1. While falling values predominate across the country, there are only six states where values fell by more than 10% over the last year.

2. Unlike other investments, housing puts a roof over your head. That has always been its primary function. Yet, along with that benefit it is still an investment and in comparison to most others, it has compared favorably. Over the last 5 years, the vast majority of states still show positive appreciation with half even showing double digits. The same can not be said for the stock markets.

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

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Google Needs Another Pony (Big One!)


“Google’s stock has taken a beating this year, falling more than 20% since January. There’s a bunch of small reasons for Google’s stock to be dinged, including the failure of the Nexus Onepulling out of China, and the weaker Euro posing some problems. The big picture for Google is that it hasn’t found a second leg of business to dazzle investors. Android is poised to become a monster, but Google has yet to prove it will make much money because of it. Until a second business is formed, and takes off, Google’s stock could be stuck in the mud.”

Read more: http://www.businessinsider.com/chart-of-the-day-google-sp-500-nasdaq-2010-6?utm_source=Triggermail&utm_medium=email&utm_campaign=SAI_COTD_061410#ixzz0qriU8ASh

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“How High The Moon, Oops, Apple”


Take a look at this interview with Jim Cramer. Like the song, “How High the Moon”, we all wonder how high Apple will go. Of course, the title made us think of a great arrangement sung by Ella Fitzgerald and The Manhattan Transfer. Have fun with these videos and let us know “how high Apple will go!”

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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.

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