Your August 2023 Letter From My Heart, with the Good Bad n’ Ugly

Good morning to August – Getting your Summer on,

Don’t Miss Out – Prepare Today !!

How We Can Help

Let’s bring light to the challenges of the banking sector. The heart of lending is and has always been the creation of trusting connections between you, your friends, and the multitude of our lending partners.

Key is preparedness, flexibility and being adaptive. Our specialty is in connecting you with lending partners best suited to advance your specific buying needs and experience, whether home or investment. Our advocacy and priority is You!!

The end of our letter offers more details. Any questions – Please call us.

Real Estate News – Tracking Our Market.

Recent News and Expectations for 2023:

Perspective: Markets returning to stated norms:

The conundrum of understanding why the Federal Reserve continues to increase rates. The 2.4 % inflation rate being sought is the current Fed Funds rate MINUS the consumer expectations for inflation. (Note: how well does the consumer ‘expect’). If so, current rates puts us at 1.3 %, below the 2.4 % target. So, a couple more Fed increases added to lower consumer expectations for inflation.. and we might get to the Fed’s number next year.

Side note: If the Fed used the expectations of their 400 economist employees, we would be at 2.5 % before last weeks increase of 0.25 %.

From our Residential Real Estate market, consumer expectations continue up a bit. This, despite media hyping a ‘decline’ in “Housing activity, due to higher rates”. However, upon a closer look, we see the underlying numbers tell a different story. Nationwide, competition for housing is heating up with an average of 3.5 offers per sale – up from 3.3 – highest since May 2022. Here, we see 33 % selling for over asking price. Further, we have “Days on Market” down to 18 days.

My thoughts: Higher interest rates have been a needed cooling cloth, quieting the potential from over-heated appreciation – due to a supply shortage. A rational market is a good thing.

Bottom Line: Start Preparing Today With Mike Ryan & Associates

Key to Success: Stay disciplined, prepared and ready to act. Let your Realtor – and the Seller – know of your readiness and commitment to buy. It is a strong step in turning your dreams into reality. For certain don’t let the “All Cash Buyer” be of concern. Most Sellers tend to prefer the real life experience of a traditional Home Buyer. Why? Because Homes are personal and family is key to the American heritage.

Let’s Talk Today

Be ready, today. A strong loan application is a winning attitude.

It strengthens your Realtors efforts in selling you and your offer

as the winning offer. Being “best” prepared is sound advice.

Interesting News We Can Use

Interest Rates: After bouncing off the high mark early last month, we have cooled a bit. Considering debt loads, with housing and rents the leading sticky inflation points, and we have the new normal rate of interest rates with starting number of 6 or 7.

Looking to Buy or Invest?

Call today and begin early preparation now.

This keeps you ready and flexible. It is key.

The Good, the Bad, And the Ugly

The Good – Income Disparity: There has been a significant reduction in poverty and income inequality in the United States. New research shows that in 2021 and 2022, child poverty has been reduced by 40%, and the gains made by low-wage workers, have reduced income disparity by 25% – first substantial gains for low-wage workers in 40 years.  For me, I am skeptical as how to best interpret such numbers measured, against centuries of extreme decline poverty, literacy rates, child mortality, violent deaths, and percentage of people living under autocratic rule. All good, but can be misleading, considering the devastation of wars.

The Bad – Let’s study the media’s over emphasis on reporting negatively on housing. They barely, if at all, report factually about there not being enough inventory and why so. They seem to overlook that that over the past 3 months, there has been an ever increasing speed of sales, the shortening months of available inventory, and that close to 35 % of homes sales are selling over the asking price. And if they do, they bypass the facts by with smooth talking headlines – “Does Inventory Really Explain Home Sales Slump?”

The Ugly – Watching the wrong numbers. And, I am guilty as well. One big one: Employment numbers are NOT a leading indicator. Hat tip to Elliot Eisenberg. He showed changes in U.S. unemployment rates, leading up to a recession – 10 since 1953 – on average has not noticeably changed during the 12 months,. Further, once the recession begins, the “unemployment rate” slowly rises and peaks 12 months later – at a level three percentage points higher than when the recession began. The unemployment rate is a lagging not leading economic indicator.

Bottom line: Don’t be overly discouraged. Instead, maintain a sense of balance, and encourage others to do the same. For certain all have challenges in their lives, yet our desire to do better, is our common driving force. Yes, higher taxes, higher interest rates, and higher inflation are short-term risks to family finances. The good news is history shows this will pass. Stay active and let your voices be heard. Let’s hope this reality becomes the common truth.

Planning and Preparation

Should one invest in stocks, bonds, real estate? Each person has a different view, often based upon comfort levels and sense of risk / reward. It is what we call the market place. It is key to one’s “planning and preparation”. It is here, we bring our expertise and experience. Our efforts are to complement your perspective. Our goal: Bring a full range of meaningful options that enhance your vision, based upon todays market realities. Call today. Let’s set a time.

Why Call Mike

What We Do – Why We Are Here

We know how to explore and carefully examine the many available real estate options. We scrutinize for safety and prioritize the most feasible. It is how we build a trusted relationship with you, as you grow your wealth and secure a solid future – for you and your family.

Small Business: We love small business and provide loans offering a full array of financing.

Residential / Commercial: We offer strong lenders and a complete package of lending options.

Tax-deferral strategies: Investment portfolios tend to be dynamic in nature, subject to change and surprise. It is why it is important to keep updated, as to tax law. Herein, is a key question: Pay taxes today or keep your cash, working for you? How? By “deferring projected capital gains tax”? And if keeping your capital – working for you – sounds good, let’s talk. Let’s discuss the best available options and plans-of-approach. Best: We have the professional team who know how to bring it all together. Details matter and they know all the small details.

Why: Why payout up to hundreds of thousands of dollars – even Millions – when there are tools to keep your hard earned money working for you – and your estate. Interested? If so, now maybe a good time to talk – to start planning for tomorrow. Tax planning is a good strategy, especially with new laws wanting to stop you from passing highly appreciated real estate, onto your heirs. Let’s talk. Your estate matters.

What We Do: Our role is to explain and bring clarity to time-tested strategies able to keep your money working for you. For me, this presents a solid opportunity to keep your cash and build wealth. One that is worthy and a profitable use of your valuable time. Let’s talk.

Tools: We offer multiple tools and proven methods for highly appreciated holdings. The goal: Keeping your cash in your proven hands. Our team offers highly qualified and knowledgable professionals, are ready to make it happen.

Retirement: Like myself, as we mature, real estate becomes more personal. If you agree, let’s talk. Together, we can help find answers and solutions to questions about a too soon, tomorrow. We can start today. We can address a range of questions, from working at home, to a multitude of retirement options. Our effort is to bring clarity to important real estate planning issues.

Our Purpose:

Be insightful and practical.

Work with you, finding best answers and solutions.

Always Being Straight Forward, with No Short Cuts.

Success begins with solid preparation and a proven professional – Mike Ryan. I know the ropes and am a proven advocate. I offer time-tested insights and experience. Best, I love to see my clients achieve their goals. Call us – the professional team who stands with you. Call today.

We are ready!!!

Thank you and continued blessings.

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