Good morning to the fun of Fall,
Note of the Month: Home buyers, the best time to buy was 90 days ago, when interest rates were higher, but competition was at its least. Good News: Recent drop in mortgage rates, is bringing increased market activity – across the board. Why? People on the sidelines – waiting for better rates – are re-entering the market. And for those waiting, consider what occurs when interest rates drop, even further. It is time to prepare and move forward. Call today. Let’s talk about market implications – and potentials – as market activity increases.
MARKET NEWS
Federal Reserve: I have discussed the Fed often, as MSM (Main Stream Media) remains confused. Understand, anticipated rate changes – most often – are already baked into the market. Thus, typically most Fed actions occur after data confirmations. In the alternative, markets love to operate in a state of permanent anticipation – projecting tomorrow, but taking action, today.
Jobs: Our constant discussion about the disconnect between Bureau of Labor Statistics (BLS) and the Quarterly Census of Employment and Wages (QCEW), has been exposed. We previously made the point that 2023 BLS, likely overstated job creation by 50,000 per month. Even worse, the latest report of April 1, 2023 – March 30, 2024, shows the error was 60,000 per month. Markets barely reacted, having the realistic numbers, ignoring those easily politicized.
MSM – Main Stream Media – rarely looks at revisions, nor offer comments, or point out market changes. But we do. These final numbers affect you and your real estate choices.
Treasury Rates: Markets have moved about 1/2 % lower. Rates should be in the new comfort band, thru the election. Many – including MSM – expect the market to move, but only after the Federal Reserve begins cutting rates. Yet, markets actually move, based in expectations. This is most easily seen in the stock market – anticipation, expectations, then actual numbers.
As for the past year the 10-Year US Treasury, it traded between 4.1 % and 4.6 %. But as of August 1, rates dropped to 3.75 to 4 %. And this, in a matter of days, as market expectations now expect the Fed to begin cutting rates next month. Good news.
Residential Investors: Although close to 30 % of the SFR market is sold to investors, only 3 % goes to institutional buyers. Note 1: Close to 80 % is small and medium size clients. Note 2: The market speaks that housing is needed and investors are stepping up. So much seemingly bad news, yet here is a great story about available liquidity and money being deployed. Note 3: Historically there are 2 ways to build wealth in the USA. One is small business and the second, real estate. Note 4: What’s nice? Silicon Valley is unique on more than one front. 1) great wealth built thru W-2 income, 2) small business, and 3) real estate. Combined, they build wealth unmatched by most of the population.
Our mission: Help to guild, challenge, and support those seeking to build real estate wealth. This commitment is for both the small business clientele and those seeking real estate. Summarizing: Consider us as your ‘Asset Acquisition / Optimization Strategists’. We are at your disposal. Call Now! Let’s start today and build upon our conversations. It helps teach patience, readiness, and good timing, as we bring you the best data needed to meet your investing goals. We are ready for your call. This is the best first step.
The Good, the Bad, And the Ugly
The Good – Let’s look to my favorite source for good news: FutureCrunch.com, recently rebranded as FixTheNews.com. A source bringing inspired market news and needed balance.
In the first seven months of 2024, the United States produced more electricity from wind and solar, than coal – a historic inflection point for the world’s largest economy. Wind and solar supplied 16% of America’s electrical needs, slightly more than coal. Fossil gas still has a 42% share, but falling, as renewables continue to boom.
The Bad – The hype towards First-Time Homebuyers, while slamming real estate investors. Such unevenness of public policy, comments, doesn’t address the absolute need for investors. Note: Our Nation does not have enough housing – true for home owners or renters. About 1/3 of the population rents. Some from having to, and others by choice. I am seeing and hearing growing pushback to providing housing for renters. Note: ANY move restricting housing units is just plain BAD. Let us support those who desire to increase availability, on all levels. We cannot make any more dirt, but we can make better, more productive use of the dirt we do have.
The Ugly – Continued public policy promoting anti-growth of needed housing stock. In a conversation with a local non-profit group, one seeking to provide housing for a subset of special needs, the question of why will prices continue to go up? The answer is in the simple equation of supply vs demand. When a high end property costs $700 per square foot to build, and we look to an affordable housing project costing $1200 per square foot. Here is the problem. Here the extra cost – limiting supply – is the ‘system‘ built around ‘affordable housing’. We need changes, but the problem remains – too, many paychecks dependent upon the status quo.
We will continue to seek answers to this conundrum, despite NIMBY politics.
Perspective
How to move forward, regardless the real estate environment? I say forward, as in moving past fears and undo concerns. With this, there are two primary strategies: Owner-occupied and investment. For both, the long-term goal is the same – building equity and net wealth. How? By paying down the mortgage and property appreciation. Key: Careful planning that focuses on choices, timing, and understanding potential.
This path to success can be accomplished and is good for just about everyone. First step: Let’s talk and layout a plan together. Here, we can provide information and helpful data to build a customized plan and approach best fit for you and your goals. How to begin? Let’s talk.
Planning and Preparation
I rarely change this section. The basics for investing are pretty straight forward. What remains is finding the best path to success and the discipline to stay the course. It begins when you reach out to us. Please make the call today.
Should one invest in stocks, bonds, real estate? Each person has a different view of potential, of comfort levels, of the sense of risk vs reward. Such is the heart of the market place and key to one’s “planning and preparation”. To this, we offer clients our expertise and experience in order to complement your perspective. Our goal: Bring a full range of meaningful options to enhance your discernment, based upon todays market realities. Call today. Let’s set a time.
Our strategies are straight forward, logical, and built on sound reasoning. No doctorate in finance needed to plan and succeed.
Why Call Mike
What We Do – Why We Are Here
We know how to explore and carefully examine the many available options. Yes, we are real estate centric for the long term gains anticipated. While we do NOT ignore other types of investments. We scrutinize for safety and prioritize the most feasible fitting you. It is how we build a trusted relationship with you, as you grow your wealth and secure a solid future.
Small Business: We love small business and provide a full array of financing tools.
Residential / Commercial: We offer strong lenders and a complete package of lending options.
Retirement Strategies: 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 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.
Purchasing Options for Investment Properties: We finance Nationwide investment property purchases. Little known loans requiring very limited documentation – NO income tax returns. The loans are based upon the properties cash flow. Curious? call. Investing out of the area is not rocket science.. yet you do need to have some knowledge, let us fill in the blanks for you to succeed and prosper!
Another perspective of ours is: Buy Now, as much as you can. Why ?
1) Properties continue to appreciate each year, due to supply / demand imbalance. This rate tends to rise faster, than money we can save.
2) High interest rates can benefit today’s buyers, as it takes out speculation pricing and keeps a much the competition out of the market
3) When and as interest rates drop, many Buyers now sitting on the sidelines, will enter the market. In turn, this will drive the rate of appreciation even higher, along with multiple offers and over-bidding of price.
If this sounds good, let’s start talking today. Let’s make your future brighter, together.
What We Do: Our role is to explain and bring clarity to time-tested strategies able to keep your money working for you. One worthy and profitable of your efforts and valuable time.
Tools: We offer multiple tools and proven methods. The goal: Offering highly qualified and knowledgable professionals ready to make it happen.
Our Efforts: To be insightful and practical. Working with you, to find the best answers, matched with carefully planned timing. Priority: 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. We are the professional team who stands with you. Call today.
We are ready and forward looking !!
Thank you and blessings to all.