Your June 2023 Residential Successes and News

Good morning to Summer in June

– Mortgage Rates Continue Sideways – 


Our Goal: 

Turning words, charts, and data into cash, assets, and wealth. 

New tools for investors: We have expanded our residential lending. We now service Texas, Florida and Oregon. Quite the benefit of a somewhat slower California activity. It provided the time needed to reach out to others areas of rapid growth. It has been our planned investment strategy of success. And now is the time. It’s designed for immediate needs and future events – college tuition, inheritance, vacations, and fun days of retirement. Let’s talk.

Such fits well with our working years, as we pursue asset accumulation and meeting daily cash demands. For retirement, this strategy becomes one of seeking low-risk investments, reliable cash flow, and upside appreciation. Love the concept, but it doesn’t happen in a vacuum. We often need the helpful know how of a proven professional. Call Mike.


Points of interest:

  • Economic Drivers: Personal Consumption Expenditures or “PCE”

April inflation was hotter than expected – 0.4%. Even the core reading – no food and energy – did the same. Pressure points: energy and used car prices – up 4.7 % month-over-month. Such numbers are volatile. Thus take them with a grain of salt.

  • Real Estate: Upward track 

Current numbers support our last months viewpoint. Spring Buying is bringing higher prices. Yet, be watchful. A good portion of negative media will be coming soon. Why ? The appreciation numbers and data we receive, are a compilation of the previous 12 months. Last summer was a summer of hot appreciation. As a result, the more normal market will see current-day numbers looking relatively negative. This will continue as we work off the highs of last summer. The  Good News: We should continue to see and expect this years numbers to increase – in the mid single digits. Good for all homeowners!

  • Fed Speak: Skip an Increase

Don’t be Fooled. “Skip an increase” does not mean the Fed has stopped increasing. It means they are contemplating what they deem relevant date. Who knows. Perhaps the next move is downward. The waiting game of opposing views, will be interesting. My current ‘guesstimate’ another raise in rates coming at the next meeting.

Overall Market News

1) Overall Labor Market: Jobs numbers

ADP numbers: Above expectations, surprise being still led by Leisure and Hospitality. A slowing is expected. To this, add manufacturing – adding 100 K jobs – another sector likely to cool. Wage growth shows more softening.  Still positive, but not as hot. Good news for the Fed. 

Unemployment numbers: Holding pretty steady, yet slowly climbing. Yet the Challenger layoff report increased 20 %. Not sure how long before this is reflected in Fed Reserve policy ? 

Recent Residential Success Story:

Now What’s Fun, Me to you:  New Home Construction

Historically, new houses constituted near 15% of all homes sold. While that percentage dropped to 5.8%, in July 2011 – the worst of the Housing Bust – it’s been overall steadily rising since. In December 2022 it hit an amazing 34.9% and in March 2023 32.8%. This nearly matches the high of last year – 33.4%. Of interest: Single-family starts are painfully anemic, while completions are stellar, resulting from supply-chain issues holding up previous deliveries.

Housing supply will continue to be below that needed. It is easy to forget the pain of the ‘Great Recession’, yet we need to remember the depth of the damage done to some segments of the market. Home building / construction being one. We LOST 3/4 of the trained and qualified workers. This drop in construction lasted 3 1/2 years. They all went on with life elsewhere.. We are still rebuilding this segment of the workforce. Lack of supply continues to hold up both pricing and the economy. 

Summary List of the Breadth of Lending we do:

We have the best financing options the market offers. Quick list: 1) Veterans, 2) 1st time homebuyers with some fabulous brand new programs, 3) self – employed, and 4) investors with and without traditional income sources. Good News: The marketplace, being careful with its money, benefits the well prepared borrower. There are now more lending options than before Co-Vid. Call. Lets talk before you buy. Let’s talk today.

Market Disciplines 

Rule # 1: Desire to create ‘more’ wealth for tomorrow? How? By start sacrificing today. 

Consider a recent Freddie Mac study: In 2009, 34 % of people were considered financially literate. In 2018, this number dropped to 16 %. Not necessarily a surprise, considering today’s high tech financial tools. They make the importance of being financially literate, a low priority. This should be worrisome to all. 

Investing – Equities. I strongly suggest and recommend one maxes out on the retirement account contributions – each year. This deferred income, with tax benefits, builds for future years. Many such plans are offered, with an employer matching contribution plan. A great perk. Don’t leave it on the table, always being aware of how it’s invested. For many, a great way to keep your money working for you. 

Investing – Real Estate. Yes, yes and yes. Yes today. Yes yesterday. Yes tomorrow. This is much the same as putting money aside in retirement accounts, while adding diversity. If your focus is in the “building for tomorrow’ stage”, now is the time to talk and prepare.

Divesting: There are times in life where one needs to sell an investment, due to life’s uncertainties. It brings home the need for a carefully review of one’s investment inventory and see if they remain on-track to achieving the intended goals. One needs to be flexible and willing to go to cash or find an alternative. Good News: We are here to not only set a plan in motion, but also ready to discuss the handling of the unexpected or even better – issues such as capital gains. More Good News: We have IRS approved tools and techniques to help keep your hard earned capital gains working for you – to keep them away from the taxman – federal and state – on a deferred basis. Such is the beauty of working with Mike Ryan and Associates. We are just a call away. Planning amongst friends. 

Preparing to buying your next home: How about a “tool” that uses your old property, as collateral for the new home? How about tools whereby the current, “old” home payment, does not count against you, as you moved into the new.  Want More OptionsCall today.

Truly, our letters but scratch the surface of available options, alternatives, and potentials. We are ready and experienced in most every stage of life, to directly help you build a strong investment portfolio – regardless life’s ebb and flow. It is why a key approach to serving you, is to work with your unique view of life – today and tomorrow. 

Because You Matter

Our letters are a guidepost to buying, selling, or investing. Of doing so, wisely and with a sense of timing. We address your questions and find real life solutions customized to you. It is what I love about my work. It is that people-to-people exchange of thoughts and ideas. Add to this, our complete set of helpful tools designed to complement our shared goal – your success, today and tomorrow. We are here for you.

Knowing you proves the best way to discovery and address your needs and unique viewpoint. Your dreams matter. Thank you for your trust and referrals. It’s appreciated.

Call me – Your success is my success. 

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