Friday, December 30, 2016

Boring can be better

Have you been watching the recent real estate reality TV shows?  Properties in prime cities are now sitting on the market for over a year and sometimes much longer.

Having traveled that road in past years, I can suggest extreme caution when making real estate purchases. Many areas of the area (especially the tier one areas) appear to have peaked and potential buyers are pushing back to find real value.  That is what I refer to as "what the buyer is willing to pay and the seller is willing to sell for" AKA...present value.

This should not stop the wise investor from seeking wise investments.  In my opinion, too many top heavy investors have overpriced these top heavy cites and smart investors are seeking intelligent investments where the ROI, and capital investment make sense and offer an upside for the buyer./investor.

Think before you sink.  Real estate is rarely a short term gain.  If you buy right, you benefit later. 

Wednesday, December 28, 2016

Noticeable Real Estate Buying Trends by the Chinese in US Markets

It's no secret that the US has always attracted international investors.  They have included individual buyers/investors as well as larger institutional buyers.  One noticeable trend that has been documented by Chinese investors has been shift in acquiring both trophy and real estate in sectors that do not have the same "curb appeal", or get the attention that previous buyers have focused on when purchasing US real estate.

In a recent article, it was noted that many Chinese investors are seeking out investments that do not necessarily stand out, including luxury hotels, class A office buildings and other well known properties that are well documented in first tier cities.

As I stated in a previous post, with our new administration, much of the emphasis was place on middle income workers in 2nd and 3rd tier cities and a commitment to improve the quality of lives, incomes, jobs and education in those areas of the country.

 Location of Chinese Buyers ( from New York Times map ) 2015

Could the Chinese be on to something?  Do they recognize a forthcoming plan to get into the real market on a sizable level (at an early stage) in many of the potential growth areas?  It is no secret that while many foreign investors are still buying in tier one areas of the country, prices in many of these areas appear to have reached record highs and the days of buying at asking price has declined in many of these major cities.

More recently, international investors are seeking out mid- tier properties, which also includes investments that have not always been a priority for international investors.  These include student housing, senior living communities, affordable housing, mid level rental communities, and the like.

In summary, I believe that several factors are contributing to this gradual shift into broader real estate markets, locations and types of investments.  As I have stated before, real estate is local in nature.  Knowing these 2nd tier cities and where high potential opportunities exist is paramount in making strategic investments in the coming years that may very well offer excellent returns for savvy buyers.

Tuesday, December 27, 2016

Latest Real Estate Projections

After reviewing Case-Schiller and other professional economists that focus on the real estate sector, they once again prove that real estate is local in nature, but paramount to our national economy.

With a new President entering the White House, so much speculation is already being analyzed concerning wealthy urban areas including: Manhattan, Washington DC, Boston, Philadelphia , San Francisco and several other major metropolitan areas.

While these larger, more robust cites in the US certainly stand out, the impact, or spillover effect on 2nd-3rd tier cities will also be impacted.

Again, real estate is local in nature, but the coming year will definitely feel the national impact that arise due to interest rates, demographics, shifts in the economic sectors nationally.  Other key factors that help define the desirability and affordability of the cities that appreciate in value, remain flat or even reverse in value will be defined during the new administration.

We have much to learn in 2017 and time and the decision making process of this administration will certainly have a significant impact on valuation in the coming years.


The Greater Jacksonville Housing Market

 San Marco Jacksonville Florida
                                                                                                       San Marco

The Greater Jacksonville housing market is expected to experience a significant improvements in sale growth and in price appreciation in 2017.  This projection has been confirmed by leading national data and analytics.

Values are expected to increase by 4- 6% and sales could increase up to 8% over 2016. This is good news for buyers and sellers, as Jacksonville is still considered to be one of the few major Florida cities offering affordable housing and a large diversity of neighborhoods to choose from.

Forecast 2017