Corona vs SARS, Strong Jobs Report, Home Appreciation
Coronavirus death toll is approaching the near 800 killed by SARS in 2002 & 2003. The estimated global economic impacted of SARS was $40B. 17 years Later Chinese economic output has gone up from $1.7T to $14T (8x) and its share of global trade is at 12.8% compared to 5.3% in 2003. “China today accounts […]
Negative Rates? Strong Home Sales, Rates Flat
Global Interest Rates – Jyske Bank in Denmark announced it is offering a negative interest rate on a 10 year fix with a ‘strong equity position’. Of course this is after fees but it’s interesting to think that you could take a loan on your house for another investment and get paid to do so! […]
Rethinking Economic Principles, Rates Flat, Appreciation
Going below the ‘natural rate’ of unemployment could spark an inflationary escalator. even Fed Chair Powell has commented on how the relationship between unemployment & inflation has been zero. Globalization is good for everyone – except our blue collar workers. Large budget deficits cause the government and private sector to compete over selling bonds driving […]
Rates Improve, Fed Cuts Likely, Conforming Low Income Program Updates
Both Fannie & Freddie have announced updates to their low income/down payment programs that give discounts on note rate and mortgage insurance rates (these programs allow: 3% down, boarder income, ADU income, & low down payment on owner occupied 2-4 units). The updates make it more challenging to qualify. Instead of allowing 100% of Area […]
Happy 243 BD, How we use our Land, Strong Appreciation Forecast
Who could have predicted 243 years ago that the United States would become the largest global economy? A big reason for our success is our vast amount of land and natural resources, but how do we use these 1.9 billion acres of real estate? It turns out that we use most of our land for […]
NAR Confidence Index, Rates Stable, Tame Inflation
In the NAR confidence index 82% of respondents reported prices are constant or rising which is down from 88% in May of 2018. Properties are typically on the market for 26 days, first time home-buyers make up 32% of sales and 81% of transactions are financed. Rates – held steady this week as the 10 […]
10 Year US Treasury – Lowest Level in 2.5 years, Fed Dot Plot, FB Unveils New Crypto Libra
Facebook recently announced plans to start a new Cryptocurrency called Libra. The following 28 companies all committed $10M to get a vote in the Libra Association Council. FB hopes to bring that number to 100 before their official launch. Rates – improved again this week as the 10 Year US Treasury note dropped below the […]
Hottest Markets, Rates Holding Steady, Portland Metro Update
Smaller metro regions across the US are seeing rapid growth. Below is a list of the top 20 according to Realtor.com. The hottest markets ranking is based on where homes sell the fastest and where there are the most listing views on realtor.com—both a sign of buyer demand. Metro markets often include surrounding smaller towns. Metro […]
Flexible Work Spaces, Rates Improve, Lousy Jobs Report
WeWork – doubled in size and 2017 & again in 2018 and is the largest private sector Real Estate occupier in NY, DC, London, & soon to be SF. They are going public this year to keep up with the projected $4 billion in annual lease spending. This NPR article breaks down the numbers and […]
Percent of Homes Selling Above Asking, Rates Improve, Appreciation Continues.
Homes are selling at or above listing price 31% of the time nationwide (fairly stable) down from a peak of 40% in Q2 of 2018. In Seattle this figure is closer to 50% and in San Francisco it is at 70%. Rates – in response to tariff talks, rates improved again this week by approximately […]