Linking ≠ endorsement.
Historic Macro Drivers that Support Real Estate Prices:
…both baby boomers and millennials are likely to perpetuate the demand for renting vs buying, for city living and for smaller properties.
⇧ Fewer prime properties for sale, but demand for Dallas remains strong | Dallas Morning News
Crews said worries about the energy sector slowdown so far haven’t affected Dallas’ hot real estate market.
“The guys in Houston are feeling headwinds, but we are not feeling it in Dallas,” he said. “A lot of people in Houston have pulled back and are not sure how to price things.”
⇧ Canadian house prices climb more than 9% in April | Toronto Star
The Canadian housing market continued to ride the coattails of seemingly unstoppable Toronto and Vancouver, with prices up 9.5 per cent nationally in April, year over year — but a far more reasonable 3.4 per cent when the country’s two hottest markets are factored out.
The oil shakeout isn’t done yet.
⇧ Can the U.S. Commercial Real Estate Boom Last? – Barron’s
…rushes like this have the potential of turning into bubbles that pop, as was the case in 2008. Bloomberg writes that “some investors are concerned that the seeds are being sown for the next downturn.”
However, the difference between the bubble-era deals and today’s transactions, writes Bloomberg, is that buyers now are putting more cash down for their purchases, making it easier to pay their mortgages and harder to walk away should the economy falter. Moreover, lending is more restrained in the commercial arena, just as it is with residential purchases.
How long will that last?
⇧ Weak U.S. data point to modest second quarter economic rebound | Reuters
A plunge of 14.5 percent in oil and gas well drilling pushed mining production down 0.8 percent last month. It was the fourth straight monthly decline in mining output.
Crude oil prices have fallen by about 50 percent since last June, resulting in a sharp drop in well drilling activity.
Companies like Schlumberger (SLB.N), the world’s No. 1 oilfield services provider, and Halliburton (HAL.N) have slashed their capital spending budgets for this year. Caterpillar Inc (CAT.N) has cut its 2015 profit outlook and warned that lower oil prices would hurt its energy equipment business.
Oil and gas drilling is down 46.5 percent over the year and there is no relief in sight despite the recent stabilization of crude oil prices. Oil rig counts continued to decline early in the second quarter.
“We see a further drop in mining investment over the next few quarters and are not convinced that business investment ex-mining will be strong enough to sufficiently offset this drag,” said Michelle Meyer, a senior economist at Bank of America Merrill Lynch in New York.
The Saudis haven’t backed off production either.
The US fracking boom was more of the economic growth in GDP than many economists apparently realized.
The impact on fracking has been messing with the dollar with all of the dollar’s ups and downs rippling throughout the global economy, as can be seen by this and other linked articles.
The Fed will not raise the interest rate for the foreseeable future. They will have no choice but to wait for price inflation or mess up.
As far as we’re concerned, the Fed should stop worrying about any loss of “credibility” and focus solely on the tangible data at hand. That would change things for the better going forward, as investor should also focus on the data rather than have the impression that the Fed is paranoid at appearing not to have and infallible crystal ball.
⇧ Washington governor declares statewide drought emergency | Reuters
Washington Governor Jay Inslee declared a statewide drought emergency on Friday, saying drought conditions caused by a lack of snowpack are the most serious in over a decade.
There was plenty of rain. It just wasn’t cold enough low enough on the mountains.
The world needs a global approach to stopping Anthropogenic Global Warming (AGW), along with all the other environmental issues concerning which many humans continue to be wildly irresponsible.
⇧ Crude oil price, May 15 – Business Insider
On Friday morning, the price of West Texas Intermediate crude oil was down more than 2% to back below $60 a barrel.
We don’t see OPEC backing off before US fracking is no longer a threat. onsidering the continuing technological advancements by the frackers, they may have quite a challenge.
⇧ ADT Boosts Home Security With LG, Nest | News & Opinion | PCMag.com
Modern home security is a lot more tech savvy than a guard dog and deadbolt.
And ADT is taking it a step further via new partnerships with LG Electronics and Nest.
What’s your landlord policy on tenants and home-security systems? Do you allow them provided your management firm and you have security codes to access the properties during emergencies and by appointments?
⇧ Seattle, like it or not, becomes Shell’s Arctic base – The Washington Post [source updated]
So, when we’re discussing Washington being in a drought emergency in conjunction with AGW, here’s Shell Oil planning to produce oil in the Arctic Ocean and being met in Seattle, Washington by protesters.
More carbon burning without carbon sequestration in place sufficient to dial back CO2 to preindustrial levels doesn’t add up to smart risk management by government or industry.
⇧ Antarctic ice shelf could be gone within a decade – CBS News
Speaking of AGW:
“This ice shelf has existed for at least 10,000 years, and soon it will be gone.”
The ice loss in Antarctica is among the clearest signs yet that global warming is already having a devastating impact on the planet. Most scientists blame the rising greenhouse gas emissions and subsequent rise in temperatures on unchecked burning of fossil fuels like oil and coal.
Here’s more on Washington’s snowpack drought.
SEATTLE — Seattle Public Utilities officials are disputing Governor Inslee’s decision to include Seattle in a new statewide drought declaration. SPU says despite the record low snowpack, there is plenty of water to go around.
One of the issues may come down to shifting water around the state according to serious needs.