Archive for December, 2015

Home Values Rising Across U.S.

Home values in 20 U.S. cities rose at a faster pace in the year ended October 2015, as lean inventories of available properties combined with steadily improving demand.

The S&P/Case-Shiller index of property values climbed 5.5 percent from October 2014 after rising 5.4 percent in the year ended September, the group said Tuesday in New York. Nationally, prices rose 5.2 percent year-over-year.

A limited supply of properties for sale has helped prop up home values, boosting the household wealth levels of U.S. homeowners in the process. Faster wage growth and continued low borrowing costs will be needed to keep low-income and first-time buyers in the market and provide the next leg of growth in the housing recovery.

Job gains and more household formation “will continue to boost demand, and prices should continue to stay within this current healthy range in 2016,” Anika Khan, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, said before the report. And even after the Federal Reserve’s first interest-rate increase in almost a decade, “it’s still going to be an environment where overall mortgage rates will remain low.”

Home Prices Rise

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Effect of Interest Rate Increase on Commercial Real Estate

The Federal Reserve Board’s 25-basis-point increase today will not have a significant impact on commercial real estate (“CRE”). Today’s increase could signal a slight weakening of investor demand for CRE, as lower risk investments like treasury bonds begin to look more attractive. However, other reasons suggest CRE prices and returns will continue to be attractive, even in a rising interest rate environment, including: (1) inflation, as a major driver of longer-term yields, is expected to remain below 2% over the next 10 years; (2) improving economic conditions, evidenced by steadily increasing jobs, leads to increased leasing and rents; (3) the U.S. continues to shine as an investment safe-haven (compared to most other countries), attracting massive amounts of capital from around the world; and (4) the Fed seems intent on a slow and gradual approach to tightening the money supply in the foreseeable future.

CRE

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U.S. & San Diego Housing Forecast for 2016

Rising prices…

Miller Presentation to Housing Outlook_Page_02Miller Presentation to Housing Outlook_Page_07

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North Park TriPlex

Howard Avenue
3 Residential Units in North Park, San Diego for $535,000!

Great rehab and flip opportunity.

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