Buy vs rent: 70% more expensive. What About Real Estate Prices?

Buy vs rent: 70% more expensive. What About Real Estate Prices?

  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 causing the large divergence in renting vs buying?  What...
Why are home prices rising while mortgage rates stay high?

Why are home prices rising while mortgage rates stay high?

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 a strong comeback and approach new highs.  What...
What does higher for longer rates mean for real estate?

What does higher for longer rates mean for real estate?

  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 inflation is still hot and there is now a question of if...
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...
President Biden’s national rental regulations announced

President Biden’s national rental regulations announced

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 biggest change is...