REVERSE MORTGAGES – Still a Wolf in Sheep’s Clothing

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REVERSE MORTGAGES – Still a Wolf in Sheep’s Clothing

Home equity represents the wealth of most middle-class Americans. Ideally, that wealth may be transferred to the next generation upon the death of a homeowner. However, reverse mortgages provide yet another financial instrument to confiscate the wealth and stunt the growth of the middle class by encouraging homeowners to extract decades of accumulated home equity in order to supplement their retirement. In part because the federal government now regulates reverse mortgages, the upfront costs ... Read more

CRE Investors Should Exercise Caution As Prices Peak

As commercial real estate ("CRE") prices hit an historical peak for retail, industrial, office and multi-family investment properties, the earnings yields on other assets like stocks bonds have declined significantly, making steep CRE prices still seem more reasonable from an asset pricing perspective. However, CRE investors would be wise not to over-leverage with cheap debt, such that a future bump up in interest rates, slowing of growth, decline in rents and/or increase vacancies ... Read more

Mortgage Rates Fall – Average 30-Year Fixed Rate at 3.61%

Long-term U.S. mortgage rates fell this first week of May 2016, following the Federal Reserve's decision not to raise its benchmark interest rate. The decline put long-term mortgage rates near their low levels for the year, offering an inducement to prospective home buyers during the spring buying season. Mortgage buyer Freddie Mac stated the average 30-year fixed-rate mortgage declined to 3.61% from 3.66% last week -- far below its level a year ago of ... Read more

San Diego Home Sales & Prices Rise

The San Diego region's real estate market posted significant gains in March of 2016.  According to the San Diego Association of Realtors, 1,885 single-family homes changed hands in March, up 33% over February.  Condo and townhouse sales were up 26% over February, with 998 sold in March.  The median sales price of houses last month jumped 5% to $551,000, and 7% over March 2015. The median sales price of condos climbed 3% over February ... Read more

New Regal Properties Listing in Downtown San Diego

1240 India St. #509, San Diego, CA 92101 1 bed 2 baths 921 sq.ft. in beautiful Treo Building Read more

San Diego Millennials Struggle to Buy Homes

San Diego has the second largest millennial population in the U.S.  However, San Diego’s exceptionally high millennial unemployment rate, combined with its exceptionally high average mortgage amounts of $365,000, results in these millennials being among the least likely in the country to purchase homes.  The online lender, Lending Tree, analyzed mortgage requests over the past year and found only 36.9% of requests came from those under 35, the fifth-lowest out of the largest 59 ... Read more

Regal Properties Starts 2016 with a Bang!

As of the beginning of February, Regal Properties has already sold 3 commercial real estate projects, each in a different sector and state. The first, a retail center in Columbus, Indiana, included Starbucks and AnyTime Fitness tenants, with a selling price of $2,325,000. The second, an office property in Poway, California, included medical, chiropractic and optometrist tenants, with a closing price of $2,300,000.  The third, an industrial property, in Conroe, Texas, leased by a ... Read more

Volatile Financial Markets in 2016

Financial markets sold off sharply on the first trading day of 2016. Over the weekend, the Shanghai Shenzhen CSI 300 index fell by 7 percent, triggering a newly installed circuit-breaker to halt trading for the day. Reasons for sell-off appear to include China’s weak manufacturing and slow recovery, and the potential lifting of a ban on insider selling by major Chinese shareholders this coming Friday. Expect continued volatility in the stock market and economy ... Read more

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 ... Read more

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 ... Read more
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