All week long, we’ve talked about the devastating California drought – both how it was caused and how the real estate market can not only survive, but also thrive. Despite the not-so-terrible economic news, there is no question that the status quo can’t last. The state has spent years with its proverbial hands over its eyes about the coming danger, but we can no longer afford denial. The real estate industry, and particularly those investors who are rehabbing houses to fix and flip, can lead the way in personal responsibility.
california real estate
The story of California is written in water and gold. From the beginning, the state was seen as having the climate for world-sustaining agriculture. Its boosters looked at its ports and saw the access for America to spread into the Pacific, and then to the world. California was the dream of American expansion. What its cities and great fields needed, though, was water. The most elemental fact of life and nature was the great engineering challenge needed to bring the state to life. All real estate rights, then and now, have been based on the ability to get water.
America has always been built with the frontier in mind. From the first pioneers who slid through the Cumberland Gap, to those who braved the wilds of the Illinois Territory, and across the plains and mountains and deserts to that sparkling California coast, the whole ethos of the country has been one of expansion. That’s continued, albeit on a smaller scale, with the expansion of urban areas that reach farther and farther from a city center. What does it mean for real estate when the expansion reaches its end?
When mortgages are near record lows, it seems greedy to ask if rates can go even lower. However, that is becoming a growing possibility in today’s topsy-turvy economic climate.
When mortgages fall, just about everyone but the bank wins. Low rates mean more buyers are in the market, so sellers can offload properties more easily. Flippers and rehabbers low love rates for this reason.
[Read more…] about Why Mortgage Rates Can Go Even Lower, and What It Means for the Market
Real estate investing may not have been the number one topic of discussion at this year’s World Economic Forum in Davos, Switzerland, but with so many property tycoons in attendance, the topic was unavoidable. When it was discussed, however, almost everyone could agree on one real estate trend: markets are struggling all over the world… except for America.
[Read more…] about World Economic Forum Attendees Weigh In on Real Estate Markets Around the World
Real estate demand is going up all over the country and real estate investors are seeing business pick up as a result. One corner of the market that is often overlooked, despite being particularly profitable, is the office and commercial development space.
Here, an economic recovery is as present as anywhere else. According to data from Reis Reports, an independent market research firm, the nationwide office space vacancy rate has fallen to its lowest point since the third quarter of 2009. Reis sees vacancies falling throughout the country to 16.7% by the end of 2014, the lowest level in five years, thanks to more confidence in the demand for goods and services throughout the country.
[Read more…] about Office Building Demand Is Up on Rising Occupancy Rates