Happy New Years and our First LFH for 2016

Good morning and Happy New Year!

In celebration, we will take a break from our typical Good, Bad and Ugly. Part of the reason is our need to digest what seems as coming shifts in our markets.

For now, we will let this month’s letter lean more heavily on a few key points. These will help guide us into the New Year; an election-year filled with potential and possibility. Let’s start with a few helpful kernels of my year-end readings:

  1. Commercial property: Keep your eye on the dynamics making this a good investment. In particular, our growing population, improving jobs, and rising wages. Bottom line: We will need additional growth to meet the demands of a growing population. More employees, with more to spend.

Locally, most of our excess capacity, built during the last boom, is now filled. As a result, new building / construction projects are underway to meet projected job growth and consumer demand. Nationwide, commercial occupancy continues to decreases, despite new construction.

  1. Loan Rates run with the supply and demand of available money, with world-wide politics bringing more money to our markets. And with low inflation expectations, we finish 2015 with the loan rates lower than 2013.

  1. Affordability Index: Over the past many years, the Statewide indexed has swung from a low of 11 to a high of 56. Currently, at a score of 30, we are near the middle of the range – a good place for what is ahead, especially considering the regional demand. A score of 30 is a healthy number.

  1. Home prices: Continue to increase steadily. Locally additional pricing pressure as more investors find real estate a better long-term investment, based in yield and appreciation. What are your thoughts?

5. Mortgage Brokers, small & non-institutional, returning to respectability, increasing market share by 21% over the Big Boys. Amen!

We hope you had a fabulous holiday season! Our calendar allowed us a couple of long weekends, to enjoy family and friends. What a joy! And thank you again for the opportunity to serve you and be a part of your investing future. Our goal continues to be one of providing you safe leverage and secure lending practices.

Call today and let us see how yesterday, will impact your New Year.

Ever gratefully yours,

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