Economy is solidly advancing

6 Replies

I read a recent article by one of the very best Economist in the Real Estate Business that anticipated growth of 4 to 5 percent occurred in the second quarter. GDP will exceed 3% for the first time since 2005 and unemployment is at 3.8 percent. This is terrific news. However, there continues to be a shortage of available homes for sale, and the homes that are for sale are priced on the extreme high side or are going into escrow in a matter of days, resulting in a need for rental units.

A business partner of mine just recently purchased a 3 family in Western Massachusetts, remodeled kitchens bathrooms and re did the wood floors, ( all affordable renovations), and increased his rents by over 19%!!!!

What are you seeing out there in your market

Originally posted by @Christopher James :

I read a recent article by one of the very best Economist in the Real Estate Business that anticipated growth of 4 to 5 percent occurred in the second quarter. GDP will exceed 3% for the first time since 2005 and unemployment is at 3.8 percent. This is terrific news. However, there continues to be a shortage of available homes for sale, and the homes that are for sale are priced on the extreme high side or are going into escrow in a matter of days, resulting in a need for rental units.

A business partner of mine just recently purchased a 3 family in Western Massachusetts, remodeled kitchens bathrooms and re did the wood floors, ( all affordable renovations), and increased his rents by over 19%!!!!

What are you seeing out there in your market

 I actually minor in economics and an investor in Stock and FOREX (currency, basically like stock market but instead of companies, you invest in countries). 

It's actually not looking good if you are talking about economics. GDP and unemployment are the only thing positive right now. Inflation, wage gaps, debt, etc. are not keeping up like they should be which shows a sign that the economy is overheating (its a global thing). When it overheats, one of the markets will fail, most likely the stock market since it is already showing signs of investors hesitating. My RE market is already seeing it, lot's of sales and foreclosure are start to slowly rise again. Houses are sitting 75+ days on the market. Good for investors though since rent prices are increasing... people got to live somewhere.

Originally posted by @Christopher James :

thank you for your post. Where are you located

 Right now in Louisiana. But my family and friends (not me) owns real estate around the world. From what they are telling me California, parts of Arizona, and parts of Texas are starting to see a slow in the market also. 

Originally posted by @Account Closed :
Originally posted by @Christopher James:

I read a recent article by one of the very best Economist in the Real Estate Business that anticipated growth of 4 to 5 percent occurred in the second quarter. GDP will exceed 3% for the first time since 2005 and unemployment is at 3.8 percent. This is terrific news. However, there continues to be a shortage of available homes for sale, and the homes that are for sale are priced on the extreme high side or are going into escrow in a matter of days, resulting in a need for rental units.

A business partner of mine just recently purchased a 3 family in Western Massachusetts, remodeled kitchens bathrooms and re did the wood floors, ( all affordable renovations), and increased his rents by over 19%!!!!

What are you seeing out there in your market

 I actually minor in economics and an investor in Stock and FOREX (currency, basically like stock market but instead of companies, you invest in countries). 

It's actually not looking good if you are talking about economics. GDP and unemployment are the only thing positive right now. Inflation, wage gaps, debt, etc. are not keeping up like they should be which shows a sign that the economy is overheating (its a global thing). When it overheats, one of the markets will fail, most likely the stock market since it is already showing signs of investors hesitating. My RE market is already seeing it, lot's of sales and foreclosure are start to slowly rise again. Houses are sitting 75+ days on the market. Good for investors though since rent prices are increasing... people got to live somewhere.

Ouch what market are you in where properties are sitting for 75 days 

My areas are a couple weeks tops 

Originally posted by @Michael Plante :
Originally posted by @Ezekiel Racelis:
Originally posted by @Christopher James:

I read a recent article by one of the very best Economist in the Real Estate Business that anticipated growth of 4 to 5 percent occurred in the second quarter. GDP will exceed 3% for the first time since 2005 and unemployment is at 3.8 percent. This is terrific news. However, there continues to be a shortage of available homes for sale, and the homes that are for sale are priced on the extreme high side or are going into escrow in a matter of days, resulting in a need for rental units.

A business partner of mine just recently purchased a 3 family in Western Massachusetts, remodeled kitchens bathrooms and re did the wood floors, ( all affordable renovations), and increased his rents by over 19%!!!!

What are you seeing out there in your market

 I actually minor in economics and an investor in Stock and FOREX (currency, basically like stock market but instead of companies, you invest in countries). 

It's actually not looking good if you are talking about economics. GDP and unemployment are the only thing positive right now. Inflation, wage gaps, debt, etc. are not keeping up like they should be which shows a sign that the economy is overheating (its a global thing). When it overheats, one of the markets will fail, most likely the stock market since it is already showing signs of investors hesitating. My RE market is already seeing it, lot's of sales and foreclosure are start to slowly rise again. Houses are sitting 75+ days on the market. Good for investors though since rent prices are increasing... people got to live somewhere.

Ouch what market are you in where properties are sitting for 75 days 

My areas are a couple weeks tops 

 Shreveport/Bossier City. Majority of the foreclosed homes were due to baby boomer passing away and their kids won't pay for the mortgage. Kinda awesome for investors with a buy and hold strategy. Just put an offer in for a home that would normally be $250k fixed up for only $65k. It does need repairs, but turning it into an "A" class property would only cost no more than $100k. I'll be able to rent it out for a high price too since the neighbors are in the $300k and the back door neighbor is a multi million dollar property. That house has been in the market for a year which is normal for foreclosed home that did not sell in the auction here. Majority of the investors (only a handful of em), are busy right now trying to buy properties in the revitalization project that will start next year. 

I had my agent run CMA in the zip codes I would like to invest in and for the past 6 months, the sold price were about 15-20k below the final listing price (listing price were between $180k-200k) due to some of the properties are either paid in full and kids just selling off what they got from their parents or military members who are just trying to break even since they got orders and don't want to deal with renting it out or losing money.

Hi Christopher,

I have 2 properties in Springfield MA. I'm looking for contractors to do some kitchen and bathroom renovations. Any leads? My rents are low but I've been increasing slowly. Previous owners hadn't raised rents in about 8 years. I'd like to renovate or gut the bathroom and renovate the kitchen to increase the rents.The market is ready.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here