State of the Market – A Top is NOT in sight…..

Lately I have had quite a few appointments where sellers were concerned about the future of real estate prices. With homes hitting new highs, they question the sustain ability of the market. My answer has been that I don’t think there is anything to worry about, as long as interest rates remain stable and the […]

Real Estate Continues to Rally, But for How Long?

The current Real Estate market in Long Beach continues to be strong. However the climb back to 2006’s peak values from 2011’s bottom, may be running up against a little bit of resistance as this year unfolds. My outlook is positive, but there are concerns on the horizon. The History of Long Beach Home Prices […]

A Tepid Recovery

This recovery is very unlike the past two recoveries of 1985 and 1995. In both previous recoveries, prices climbed to new highs and powered forward for 5 – 10 years. The two previous price moves forward were 1985 – 1990 and 1996 – 2006. In both previous recoveries, it was like a light switch was […]

The Future of Real Estate Prices

The investment world has no shortage of commentary and media on the state of the economy. CNBC runs 24/7 with analysts prognosticating the next boom or bust. Most larger stocks have analysts that follow with baited breath each new earnings report. Real Estate on the other hand, receives no such treatment or following. I just […]

2012 Prices up as much as 5+%, Inventory Low, Prices Poised to Rise!

1995 was a pivotal year. Prices stopped going down. It had been 5 long years since prices peaked in 1989/90. Each year seemed to drag on with no end in sight. The fact that prices weren’t going down anymore seemed like little consolation because the market still felt dour, unexciting. Maybe prices weren’t going down […]

Barron’s Real Estate Article Correct! – But Missing Risk of Higher Rates

Last month Barron’s cover story was about the housing market. The cover predicts that home prices will be headed up 7% in the next 3 years. This prediction almost seems a day late a dollar short, as in August I wrote that Los Altos homes price were up $30,000 year over year, which translates to […]

Organic Recovery or Fabricated?

If your personal financial household was experiencing a rough time, and you dipped into your savings or used credit cards to shore up your finances, make purchases or take trips, would you feel good about your newfound economic recovery? Probably not. But if you were the U.S. Bureau of Labor and Statistics you would be […]

Investors With Cash, the Federal Reserve & the Misallocation of Capital

What do these items have in common? Well, a lot. I recently met with a general parter of a prospective Real Estate syndication. This general partner said he has investors willing to throw money at him, but having integrity, he didn’t want to accept the money because he wasn’t sure if he could obtain the […]

Inflation or Deflation?

While I sell Real Estate, I think my natural inclinations are as an investor. And there is literally no place in the investing world where inflation or deflation will cause greater success or havoc, than in the world of Real Estate investment. This is because no other investment allows for such high levels of leverage, […]

Bank Repo’s and Short Sales – How Much do they Really Affect Prices?

It’s no secret that short sales and bank repos sell for less. These low sales didn’t affect sellers until the advent of the HVCC (Home Valuation Code of Conduct). This law, enacted by Andrew Cuomo, is an attempt to mitigate appraisal fraud. However, laws to regulate morality or integrity often do neither. If you want […]

Credit Crunch, Short Pays & CAR’s 2008 Economic Outlook

The Credit Crunch I’m a big fan of financial sayings. “It’s only when the tide goes out that you discover who’s been swimming naked – Warren Buffett, is one of my favorites. In August of this year, that is exactly what happened to many sub prime lenders and the loans they made. See page 34 […]

Free Fall or Soft Landing?

Last night I pulled up some very encouraging statistics. The total number of unsold homes in Long Beached dropped from 1033 to 819, in just the last month. A clear indication that the market is firming up. In addition, December saw increased sales activity. Good homes that had been sitting for a while finally started […]

Market Cycles

Quite a few years ago, I had dinner with my Great Uncle. His professional career was spent in Real Estate. He was involved in the sale of many tracts throughout L.A. Co. and had done quite well purchasing Real Estate. So when he proclaimed, “It is time to buy”, during our early 1996 dinner, I […]

The Anatomy of a Market Turn

Recently I have met with quite a few prospective customers who are planning to sell in the near future. They are anxious because they don’t want to miss the opportunity that currently exists with high sales prices. Not being quite ready to sell, they are asking me, if they don’t sell for 3-6 months will […]