Warning sign? sales drop 34%, impact on real estate

Warning sign? sales drop 34%, impact on real estate

The economy is currently in a “transition” phase.  To determine if the sun is setting on our current cycle, it is critical to watch for leading indicators of where we might be heading.  One of the strongest predictors of a recession is consumer purchases of one...
US government plans to unlock 850 billion in homeowners equity

US government plans to unlock 850 billion in homeowners equity

You have to hand it to the Federal government, they are always working to solve problems that do not exist.  Currently there is a new proposal from the federal government (via Freddie Mac) to insure second mortgages/home equity lines of credit similar to first...
New tax plan keeps spending by taxing real estate and eliminates 1031

New tax plan keeps spending by taxing real estate and eliminates 1031

In economics there is no free lunch and you can’t spend forever without paying the piper.  A new  recent tax proposal keeps spending while drastically increasing taxes on real estate owners. The new plan eliminates the 1031 exchange and the step up in basis upon...
Economy not as solid as headline numbers suggest

Economy not as solid as headline numbers suggest

It is interesting that the market continues to focus on interest rates and employment as the barometer for the economy while totally ignoring one metric.  As a lender I just did an analysis on our portfolio and one metric jumped off (chart above is my portfolio).  In...
Will realtors’ settlement lower home prices?

Will realtors’ settlement lower home prices?

The big premise of the commission lawsuit against the national association of realtors is that high commission fees were one of the leading drivers of real estate prices.  How true is this statement?  Will the new commission structure for realtors lead to a reduction...
Realtors Reach Game-Changing Settlement in Home Buying and Selling

Realtors Reach Game-Changing Settlement in Home Buying and Selling

Big changes to how real estate has been bought and sold are scheduled for July. Why is this settlement the most groundbreaking change in real estate since the internet.  What is in the most recent settlement?  How will home buyers and sellers be impacted by the...