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“In the last 20 years, 4 million more people have left California than moved to California,” Weinstein said. “About a third of them have wound up in Texas.”
Source … https://bizbeatblog.dallasnews.com/2013/09/jones-lang-lasalle-panel-dallas-fort-worths-dramatic-growth-is-continuing.html/
The U.S. apartment vacancy rate fell to its lowest level in more than a decade during the third quarter, according to a new report by real estate research firm Reis Inc. It was down to 4.2 percent, the lowest vacancy rate since the third quarter of 2001, when it stood at 3.9 percent.
The average effective rent — which is the rent landlords charge after incentives such as a free first month — in the third quarter increased by 3 percent year-over-year. With such low vacancy, rents normally would grow by about 4 percent to 5 percent year-over-year, Severino [Reis senior economist Ryan Severino] says. Stagnant job and income growth are what has held rents back, he added.
Source … https://realtormag.realtor.org/daily-news/2013/10/03/rental-vacancy-rate-lowest-in-more-decade
- EXCLUSIVE: Is there a property bubble? The experts have their say
We’ve been reading about it for the last few weeks, and some of us have been talking about it for years: The Property Bubble.
We asked some of the country’s top economists and commentators in the property space to share their thoughts exclusively with Property Observer.
They were each asked:
Do you think there is a property bubble in Australia? Why/Why not?
Here, we share their responses to this question.
The responses are informative.
Source … https://www.propertyobserver.com.au/economy/is-there-a-property-bubble-the-experts-have-their-say/2013100365490
- Blackstone Opens Europe Spigot as Distressed Deals Surge – Bloomberg
It’s a slow fire sale of European-bank assets to some of the ultra-rich of America.
By buying bank loans at such discounts, Avenue can take over European companies at valuations of three to five times earnings before interest, taxes, depreciation and amortization, a common yardstick for valuing acquisitions, Furst said. Such prices can give rise to annual investment returns of 20 percent or more, he said. The average multiple for private-equity deals involving a U.S. target was 9.4 over the past 12 months, according to data compiled by Bloomberg.
The buyers are predominantly from the U.S. That’s a reflection of a long history of distressed-deals in the U.S., as well as the novelty in Europe of banks forced to sell bad loans.
“None of the significant players is local,” said Victor Khosla, founder and chief investment officer of Strategic Value Partners LLC, a $3.4 billion Greenwich, Connecticut-based hedge-fund and private-equity firm that has made distressed investment in Europe since the crisis began. “It’s the American firms that have the culture and the DNA to do this.”
Source … https://www.bloomberg.com/news/2013-10-02/blackstone-opens-europe-spigot-as-distressed-deals-surge.html
Asian capital is expected to become more mobile going forward, leading to a greater impact on commercial real estate across all global regions. Europe should continue to benefit, with allocations from the more established Asian players being more widely spread beyond London, Paris and major German cities, while newer cross-regional entrants will retain their fairly narrow focus. However, North America should see the greatest impact, with the fairly limited level of cross-regional flows of the past growing significantly, if not doubling, in the next few years.
Source … https://cbrecapitalwatch.blogspot.com/2013/10/cross-regional-capital-major-shifts-in.html
- Is the NSA ripping a $35 billion hole in US business? | Naked Security
This may not strike you as real estate related, but consider the real estate market in places such as San Francisco and how tied it is to how well US cyber firms are doing globally.
If the following is correct, real estate values could not possibly completely escape.
The “Made in the USA” label has become tainted by fallout from revelations about US surveillance, industry watchers say, while overseas governments are working to build data-privacy havens that are giving US technology services and products a run for their money.
The Information Technology and Innovation Foundation (ITIF) estimates that such fallout could cost Silicon Valley up to $35 billion* in annual revenue, much of it from lost overseas business, the Wall Street Journal reports.
As the ITIF outlined in an August 2013 paper titled “How Much Will PRISM Cost the U.S. Cloud Computing Industry?”, the US has been the one to beat in the worldwide cloud computing market, and countries were already investing money to do that – at the government level – before the surveillance revelations about the NSA.
Source … https://nakedsecurity.sophos.com/2013/10/04/is-the-nsa-ripping-a-35-billion-hole-in-us-business/
- Ken Rogoff’s Latest Bad Argument for Austerity – Bloomberg
Matthew C. Klein takes on Kenneth Rogoff.
It’s been more than three years since the U.K.’s coalition government began aggressively raising taxes and cutting spending in an effort to reduce its deficit. Many economists now agree that this program retarded the recovery, producing a slump worse than the Great Depression.
Yet Harvard economist Kenneth Rogoff, in a column in the Financial Times, argues that those measures made sense as a form of insurance against the sort of crisis that has afflicted countries in the euro area such as Spain and Italy. His case has two parts, neither of which is convincing.
Source … https://www.bloomberg.com/news/2013-10-03/ken-rogoff-s-latest-bad-argument-for-austerity.html
- Housing recovery slowdown apparent in asking prices, rents – AGBeat
Pointing to increasing mortgage rates, expanding inventory and declining investor activity as the cause of the recovery’s slowdown, the company also reports that the federal government shutdown has not affected prices yet, but a prolonged shutdown could hurt housing demand in areas reliant upon federal money. Trulia also states that in the unlikely event that hitting the debt ceiling later this month causes the government to stop paying its bills or — worst of all — default, the resulting financial panic could send the economy and the housing market into a tailspin.
There’s also a lag from the taper-delay announcement working its way through the system. The government shutdown will have a much greater sudden impact if it lasts much longer though. Even when it ends, it will still take a while for people to get back up and running in buying and selling housing.
Source … https://agbeat[temp.disabled].com/housing-news/housing-recovery-slowdown-apparent-asking-prices-rents/
ffective October 1, 2013, HUD has announced the following changes to their Federal Housing Administration (FHA) short sale requirements.
To be eligible, one must successfully complete a short sale under the FHA short sale program. The borrowers must meet the following requirements:…
In your view, is there anything that’s unfair in the new rules?
Source … https://www.dsnews.com/articles/hud-announces-new-short-sale-requirements-2013-10-03
- Unemployment by country – CNNMoney
…here’s a look at how U.S. unemployment stacks up against other countries.
Poor Greece and Spain!
Keep in mind that different countries calculate unemployment rates differently.
By the way, that’s South Korea with the lowest rate among mixed economies (capitalist/socialist). Technically, North Korea’s unemployment should be near or at zero. They are so closed as a society though that it’s difficult to know much about that. We’ve seen though that they’ve often been very economically stressed.
Source … https://money.cnn.com/interactive/news/economy/unemployment-by-country/
DUBAI: Asian institutional investors are looking to invest over USD 150 billion in global real estate in the next five years, with a focus on cities like Dubai, London, New York and Sydney, according to a new research.
Leading global real estate services provider CBRE’s latest study found that cash-rich Asian investors currently control a fifth of global institutional capital.
However, the current low global interest rate environment and weak stock market performance means they face significant challenges in maintaining adequate returns on their investments.
The lack of overseas investment experience, regulatory restrictions, limited investable stock and aggressive pricing have posed significant challenges for investors seeking to expand their portfolios within the Asian Pacific region.
Despite a sharp increase in investment activity in recent years, presently Asian investors allocate just 1.7 per cent of their assets to real estate, compared to 6 per cent 8 per cent among investors in North America and Europe, the report said.
Source … https://articles.economictimes.indiatimes.com/2013-10-04/news/42718194_1_real-estate-investors-cbre
- Vacation Rental Owner Survey Shows Marketing Challenges
Time consumption, effort:
According to the survey, owners who use solely listing sites experience an average of 54% occupancy, owners who use listing sites plus their own website average 61% occupancy, and owners who take advantage of listing sites, their own website, plus additional opportunities (social media, blogging, PR) average 76% occupancy.
Source … https://www.vacationrentalmarketingblog.com/new-vacation-rental-marketing-survey-exposes-challenges-for-owners/
- Preparing For 2014 and Beyond: Advice from Trulia’s Pierre Calzadilla
It reads like an ad, but it’s still valuable to know as an owner/manager.
How have renters changed over the past 5 years?
Here are three ways renters have really changed over the past five years:
Mobile. This has easily been the greatest change over the past five years. Trulia saw it early on, and we were the first to develop rental specific apps for Android and iOS to help today’s consumer have a seamless experience searching for their next place to live. With renters, especially, speed is crucial and our dedicated rental mobile apps allow consumers to quickly find a place, be alerted of new rental properties that come on the market and contact an agent to see a place in a matter of minutes.
Of course, Trulia is far from the only website offering rental info.
Source … https://www.appfolio.com/blog/2013/10/preparing-for-2014-and-beyond-advice-for-property-owners-from-trulias-pierre-calzadilla/
Managing your own rental properties can quickly become overwhelming. There are tenants to screen, rent to collect, and repairs to make. By hiring an experienced property manager, you can delegate the details and focus on increasing your business’s profitability instead. Before hiring a property manager, consider the following factors. …
Let us quickly add the following:
Ask for Certificates of insurance. Check the BBB. See what sort of training and certification it requires of its on-site managers. Who are its lawyers, accountants, bankers, insurance brokers, etc.? Does it have maintenance staff or outsource? If it outsources, what criteria does it use? What sort of marketing will it do for you? These are just a few of the questions to ask.
Source … https://www.westernpropertymanagementsanjose.com/763815/2013/10/03/tips-for-finding-a-property-manager.html