Economic binge continues but consumer sentiment falls, impact on real estate

Economic binge continues but consumer sentiment falls, impact on real estate

U.S. consumer sentiment fell sharply and unexpectedly in early July to the lowest level in five months. Consumers’ complaints about rising prices on homes, vehicles, and household durables reached an all time record.  Just 30% of all consumers cited favorable home...
Seismic shift in the consumer spending: Who wins?

Seismic shift in the consumer spending: Who wins?

According to a recent Well’s Fargo economic report: the forecast for the level of services spending is expected to swell to more than four and a half years of typical spending packed into nine months. What does this transition from goods to services mean for real...
Home rents jump highest in 15 years

Home rents jump highest in 15 years

I have been saying for months that rent growth would accelerate.  The numbers are in and according to Corelogic, Single-family rents were up 5.3% year over year in April, rising from a 2.4% increase in April 2020. Nationally, rent growth exceeded pre-pandemic rates...
1031 exchange eliminated; what will happen to real estate values and rental rates?

1031 exchange eliminated; what will happen to real estate values and rental rates?

Your taxes will increase $775 Billion dollars according to an analysis by Bloomberg. President Biden has rolled out his proposed tax plan with three major pillars that will impact real estate pros.    1) Elimination of the 1031 exchange provision (or such a low cap...
Loan costs for second homes, rentals to spike under new Fannie/Freddie rule

Loan costs for second homes, rentals to spike under new Fannie/Freddie rule

Do residential rental properties with one to four units and second-home mortgages carry more risk? Apparently so says the U.S. Treasury Department.  Such loans underwritten by Fannie Mae and Freddie Mac will end up costing you more under restrictions quietly announced...
Unintended consequence of Forbearance/Eviction moratoriums Wall street the new landlord

Unintended consequence of Forbearance/Eviction moratoriums Wall street the new landlord

We are now well over a year into the pandemic and forbearance/eviction moratoriums abound with property owners and lenders essentially “stuck” with limited or no cash flow.  Unfortunately, many in Washington and local governments do not fully understand how real...