It is astonishing that house prices continue higher in the face of high interest rates and a slowing economy. The media keeps pinning the continued appreciation on lack of supply even while listings in places like Denver have jumped 33%…
There is a new mantra being used in small/regional banks that is “survive until 2025”. In essence the theory is that rates will drop precipitously and basically “bail out” many banks’ portfolios. This includes treasury holdings that are underwater,…
There is a huge premium to buying a property compared to renting. It is now 70% more expensive to buy vs rent a property, which is considerably higher than at any time in the last fifty years. What is…
It is a bit perplexing; mortgage rates are over 7%, well over double their lows, and yet real estate prices are once again heading higher after a minor pullback late last year. Prices have pivoted from last fall to make…
Wow, what a year. In December the market was anticipating as many as 4 rate cuts this year. At the same time the federal reserve was doing a victory dance on pulling of a soft landing. Fast forward and…
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…
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…
States have traditionally set rental regulations including zoning, evictions, etc… but that is all set to change with the president’s new proposal. The federal government will now be assuming many of the powers that were granted to the states. The…
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…
According to everything I’ve read, the economy is humming along. Economic growth is good, the labor market is healthy, and a soft landing is all but inevitable. At the same time lenders are acting polar opposite of what we should…