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“CAPITAL INSIGHTS” with Jack Kern
Now is the best time to – well, wait. You’ve probably seen the ads from the realtors talking about how now is a fabulous time to invest in real estate and it never rains on a real estate investment and gosh golly, buying a home is a great experience. Maybe they see something I don’t because according to recently released data from their own research department at the National Association of Realtors, through July, 2008, on a year over year basis, the median price of a single family home declined 7.7%, and the median price of a condo/co-op declined 2.7%….
Fifteen Minutes into the Future by Kevin Henry
“Good morning Kevin” comes a disembodied voice. “You’re up early today…did you sleep well?” “Just fine Kitchen…I have an early morning meeting at the office…so I’m in a hurry”. “Coffee or Cappuccino?” comes the voice…”Coffee” says I…”Cereal or eggs?” “Just toast this morning” I answer…”CNN or Sponge Bob” as the screen on the refrigerator comes to life…and so my day begins. Science Fiction…no…just a glimpse of things to come… In Italy your dishwasher may call you at work to let you know that it has sprang a leak…but not to worry, it has already informed the service company and they…
The Big Picture with Erin Brereton: The Science of Finding Your Own Ad Space Online
In July, the monthly total for consumers looking into specific apartment unit availability online hit–and passed–the one million mark for the very first time, according to Realty DataTrust’s VaultWare reservation system. It’s no secret that online apartment searching is becoming more popular; given the current high gas prices–currently still above $3 a gallon–expect that trend to continue. People want to do as much research as they can online before heading out to personally view a property. But as Realty DataTrust Vice President of Marketing Gina Kilker told MHN, checking availability online is just the start of the leasing process. It’s…
“Capital Insights” with Jack Kern
Source: Bureau of Labor Statistics Chart Title: CPI for 2008 Year To DateSeries Id: CUSR0000SA0Seasonally AdjustedArea: U.S. city averageItem: All itemsBase Period: 1982-84=100 What’s A CPI Guy to Do? You know, sometimes it’s hard to be positive when the government statistics come out. Witness the chart above that demonstrates how the CPI is now running at an annualized basis of 5.6%. You have to go all the way back to around 1991 before you see results like this. I sometimes hear economists talk about the so called core CPI, which is ex-food and energy, which…
“Capital Insights” with Jack Kern
This is the first entry in what I hope will become a regular feature here in the markets section of Multi-Housing News Online. I’m going to be writing about Markets & Metrics, a special area near and dear to my professional heart. With the absolute proliferation of data and news releases coming out of lots of sources and the frequent misunderstandings that occur, I’m hoping to begin a dialogue with you, our readers and help point out some interesting facts, debunk some fictions and offer you some concise analysis. I hope you’ll come back often and contribute too! The success…
Eye on the Economy with Adam Perrotta
The nation’s economic picture has continued to look troubled as of late, with relief in oil prices being undercut by continued sharp downturns in employment and housing, as well as growing inflation. The sluggish job market did see a slight uptick last week, as the number of workers filing for unemployment benefits fell slightly from a six-year high. According to the Department of Labor, 450,000 American workers filed initial unemployment claims during the week ending August 9th—down from 455,000 new claims during the previous week, and the first week-to-week drop in claims since early July. The gains in employment, however,…
In a Tight Market, Creative Marketing is Crucial
This week, MHN reported that New York-based residential firm Metro Loft Management will be waiving security deposits for renters with strong credit histories at its 20 Exchange Place building. Condo and co-op sales have been strong in New York in the past year, despite a national housing slump. The average condo price increased 36 percent from a year ago to $1,663,533, according to Halstead Property’s second quarter Manhattan sales report. In some markets, strong home sales can weaken the rental market. That’s not the case in New York, however. Yes, selling prices have remained fairly high through the housing slump….
55+ Americans in Mexico: One Model Doesn’t Fit All
My mother has been living in Guadalajara, Mexico’s second largest city, for nine years. Family visits have provided an interesting glimpse into the 55+ expat demographic. The Guadalajara area, including the lake-side towns of Chapala and Ajijic, have sizable and well-established American and Canadian communities. Other parts of Mexico are just as popular with retirees and new areas in Baja California and beyond are being discovered all the time—offering developers new opportunities to capture a growing market. But besides knowing how to form partnerships with local players, developers also need to understand to whom they’re appealing. Just as Mexico offers…
No More Multifamily Fears About New Housing Law
Last week, the president signed a housing bill that gave the Treasury Department the authority to safeguard Fannie Mae and Freddie Mac and offered foreclosure prevention help for hundreds of thousands of homeowners. Passed just a week ago by the House and sent to the president over the weekend by the Senate, the bill had been in the works for a long time. Many members of the single-family industry hoped the new law, which includes a $7,500 buyer tax credit, would spur home sales. But some multifamily industry members had expressed concern about parts of the bill–the tax credit in…
Could Multifamily Property Sales Be a Sign of Hope for the Overall Market?
On Thursday, the National Association of Realtors reported overall existing-home sales–including single-family, townhomes, condominiums and co-ops–declined 2.6 percent. However, as MHN wrote, not all real estate sectors showed a decline. Single-family sales fell 3.2 percent. But condominium and co-op sales increased 1.7 percent. Yes, condo and co-op sales are still below last year’s level. But the fact that they rose at all–as sales of other property types continued to decline–is good news. As the single-family market continues to navigate through rocky waters, multifamily units are still moving for a number of reasons. Lower prices are making condos an even bigger…