News Alerts. Sept. 29, 2013. Evening Edition. #RealEstate

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  1. A 3% Inflation Rate Will Affect Sales | Realtor Magazine

    The most recent U.S. inflation rate has clocked in at a manageable 2 percent. This level is not inherently worrisome for consumers. But pressure is building…

    The only component of the CPI that is falling pertains to electronic devices. And even those drops are not absolute price declines. (If a new model sells for the same price as the old model, statisticians compute it as a decrease though consumers get no price break.)

    …as inflation ticks up, so do mortgage rates. If inflation rises to 3 percent by 2015, which is more likely than not, mortgage rates will have to rise by a full percentage point to compensate lenders for the loss in purchasing power of the money returned to them. A one percentage point increase on a $200,000 loan will increase the monthly payment by $167.

    …Factor this trend into your business planning….

    Read the source article … commentary/economy/article/2013/09/3-inf lation-rate-will-affect-sales

  2. The Latest Legal News, Research and Legal Profiles – Who’s Who Legal

    This is a very large overview but worth reading. Keep in mine that it was apparently penned before the Fed delayed the taper. You’ll notice that perhaps most concerning the overview of Indian real estate.

    Our research this year indicates that the international real estate market is very much a mixed bag. We received extremely varied reports on levels of activity, availability of capital, types of investors and lenders and the state of the legal market. Though the global picture is fractured and there is great variation between and within jurisdictions, the majority of those we spoke to were keeping busy and remained hopeful that the year ahead could bring further improvements.

    This distinction is epitomised in the US with lawyers in “gateway” cities, such as New York, San Francisco and Chicago, describing their past year as “exceptionally busy” and “back to pre-recession levels” whereas practitioners based in other jurisdictions, such as South Carolina and Pennsylvania, used phrases such as “very quiet” and “tough”. In Europe the picture is remarkably similar: Paris and London-based lawyers both commented on continued, steady interest in these cities by domestic but particularly foreign investors, whereas other major cities in both countries only had “pockets of investment”. One European lawyer even described parts of the French market as “going the same way as Spain, Portugal, Italy and Greece”. However, the markets in the Asia-Pacific region remain consistently strong, and for firms with a global presence this is balancing the difficulties being felt in parts of Europe. With regards to the type of work lawyers are seeing there is also much diversity. There were reports of high levels of distressed work from some quarters, whereas other lawyers spoke of significant amounts of leasing work, and others still strong volumes of transactional work. There was also reports of new trends such as the increasing importance of corporate occupiers and growing importance of shadow banking in the market as banks are still hesitant to lend. What is clear is that the real estate sector and legal market are at an “interesting” stage, and both are very influenced by the economic situation in jurisdictions. However, as one busy New York lawyer commented, “Another hiccup in the global economy and we all could be back to square one.”

    Read the source article … rticle/30765/corporate-governance/

  3. Weakening Asian Growth Prospects May Fuel Outflows – ADB – Real Time Economics – WSJ

    Expectations that the U.S. Federal Reserve would reduce stimulus may have triggered a selloff in emerging Asian assets, but the region’s slowing growth prospects have fueled that trend and could accelerate the pace of capital outflows when the Fed does tighten, the Asian Development Bank says.

    Read the source article … 26/weakening-asian-growth-prospects-may- fuel-outflows-adb/

  4. HR Magazine – Shrinking wage gap will re-shape global business, PwC study finds

    The narrowing wage gap between the UK and emerging economies such as China, India and the Philippines will have major implications for business, according to research by PwC. Real wages in the UK and US are projected to rise by a third by 2030. However, in India they are expected to quadruple and in the Philippines grow threefold, the study found. The analysis is based on estimates of average monthly wage levels from the International Labour Organisation (ILO) and projected forward to 2030 using results from PwC’s World in 2050 report. PwC said it’s “striking” how much the wage gap could close by 2030. India’s current average monthly wage is about 25 times smaller than in the UK, but by 2030 the difference is likely to be only 7.5 times smaller — representing a “huge relative economic shift”. PwC chief economist John Hawksworth said even though such projections are subject to “significant uncertainties” the direction of change is clear.

    Read the source article … 07062/shrinking-wage-gap-shape-global-bu siness-pwc-study