The Fed’s Balance Sheet and Impact on Real Estate
June 10, 2024 | 3.5 Minute Read Looking ahead, the United States faces significant borrowing needs, with projected expenditures surpassing revenue by approximately $2 trillion in 2024. The shortfall requires the government to issue treasury securities to fund its spending, thereby increasing the supply of securities in the market. Moreover, new mortgages also contribute to […]
10 High-Risk Real Estate Markets
May 20, 2024 | Reading Time: 4 Minutes Historically, real estate investment has yielded substantial returns. The S&P 500 Index reports that the average annual return on commercial properties is about 9.6%, slightly lower than the 10.3% return on residential properties. However, real estate investment carries inherent risks. Factors such as market timing, location, demand, […]
The True Cost of Waiting to Invest in Real Estate
May 20, 2024 | Reading Time: 3 Minutes Affordability remains a significant concern in the housing market, often leading prospective buyers to question whether investing in real estate is truly advantageous compared to alternative avenues like the stock market. However, there’s a fundamental aspect that many overlook: wealth creation through real estate investing. Consider this […]
10 states with the worst economies
May 13, 2024 | Reading Time: 1 Minute States struggling with economic challenges, like job loss or poor economic growth, may see a reduced demand for housing. Economic downturns can significantly impact housing markets. During recessions, unemployment rates tend to rise, consumer spending decreases, and investor confidence drops. As a result, demand for housing diminishes, […]
How the Fed Influences Interest Rates
May 13, 2024 | Reading Time: 4 Minutes The Federal Reserve is renowned for its role in shaping economic cycles, often characterized by periods of expansion and contraction. However, its effectiveness is sometimes hindered by a lack of comprehensive understanding of the economy’s dynamics and the delayed impact of its actions. One significant driver of […]
Financing the Future of Housing Development
April 29, 2024 | Reading Time: 2 Minutes The term “median home price” often gets tossed around, but what does it really mean? Let’s break it down. “Median” simply refers to the middle value in a set of numbers when they’re arranged from lowest to highest. It’s not an average; it’s that middle point. But […]
The Truth About Median Home Prices
April 29, 2024 | Reading Time: 2 Minutes The term “median home price” often gets tossed around, but what does it really mean? Let’s break it down. “Median” simply refers to the middle value in a set of numbers when they’re arranged from lowest to highest. It’s not an average; it’s that middle point. But […]
Forecasting Stability in the 2025 Real Estate Market
April 29, 2024 | Reading Time: 1 Minute In 2025, the real estate market may experience a surge, with an estimated 2 million houses projected to be available for sale. However, there’s skepticism about the accuracy of this number. Some experts believe it could be inflated due to preferences for post-pandemic living rather than essential housing […]
A Roadmap for a Gradual Correction in the Housing Market
April 22, 2024 | Reading Time: 2 Minutes Considering the present market landscape, where affordability is stretched, we can foresee a gradual correction rather than an abrupt crash. While short-term price increases may occur due to factors like declining interest rates and reentering buyers, sustained growth appears unlikely. Instead, we should anticipate a slow adjustment […]
Understanding the 1% Rule
April 22, 2024 | Reading Time: 1 Minute The 1% rule is a guiding principle in real estate investing that assesses the relationship between a property’s purchase price and the income it can generate. According to this rule, the monthly rental income should be at least 1% of the property’s buying price. To apply the […]