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Construction Spending Reaches Six-Year High at End of 2014

All three sectors of construction — commercial, public and residential — had increased spending in December as total construction spending ended 2014 at the highest level since the Great Recession, according to U.S. Census Bureau data released this week.

Construction spending came in at $982 billion on a seasonally adjusted annual basis, the highest monthly figure since December 2008 and up 0.4% from November and 2.2% from year ago, according the the Bureau. For the year, total spending was up 5.6% from 2013 and also the highest total since 2008.

The hottest segments in 2014 as a whole were warehouses, which leaped 50%, and multifamily, which climbed 34%,” noted Associated General Contractors of America Chief Economist Ken Simonson, adding that both categories are expected to do well again this year.

For the full year, private nonresidential construction spending rose a robust 11%, followed by private residential and public spending at 4.1% and 1.8%, respectively.

Private office construction jumped 24%, manufacturing rose 16% and commercial retail, warehouse and farm construction rose 13%, with office and retail construction including many renovations and repositioning projects as well as new starts, Simonson said.

Deliveries of new office space rose 9% in 2014 to 47 million square feet in 2014 as supply remained largely in check with demand, according to Walter Page, director of office research for CoStar Portfolio Strategy. The office construction pipeline increased 32% in 2014 to 107 million square feet.

“There is little doubt that the construction sector is in recovery mode in most parts of the country,” noted Simonson, chief economist for the AGC.

The one caveat, noted Anirban Basu, chief economist with the Associated Builders and Contractors, is that nonresidential construction lost some momentum in the final two months of 2014.

“However, this should represent only a minor dip in the industry’s momentum headed into 2015,” Basu said. “It is important to remember that 2014, as whole, was a solid year of recovery for the industry and total nonresidential construction spending was 6.6% higher than in 2013.”

Basu said that slightly slower growth in nonresidential construction spending could be a result of noise in the data, and does not appear to be related to the sharp fall in oil prices over the last several months, with oil-related construction categories like transportation and manufacturing retaining their momentum.

Even though federal spending shrank farther than expected, spending on nonresidential structures continues to climb, noted Basu.

“With the economic recovery persisting and with job growth accelerating, business confidence has generally been on the rise, translating into shrinking office and retail vacancy rates and rising hotel occupancy rates,” he said. “All this creates a context in which nonresidential construction spending, particularly private construction spending, is likely to expand.”

Year of the Condo

At least twice as many new condominium units are scheduled to hit the Manhattan market this year as in 2014, the most since 2007. That means more choice for buyers and some welcome competition among developers.

The influx comes after a five-year shortage, when new condo buildings practically had the market to themselves, allowing developers to push prices ever higher. The oncoming wave of new development in 2015, some real estate watchers predict, will temper that price growth and slow the pace of sales, providing some relief to Manhattan buyers.

“Whenever you have a strong market in a competitive environment, the ultimate winner is the consumer,” said Shaun Osher, the chief executive of the brokerage firm CORE in Manhattan, which is working on nine new projects for 2015, a total of 608 units. “I think the buyer will be the beneficiary from a robust development market. To compete, people will have to build better product.”

Over all, at least 6,500 new condo units are expected to open for sales below 96th Street across more than 100 buildings in 2015, as opposed to about 2,500 units in 59 buildings last year, according to the Corcoran Sunshine Marketing Group, which tracks new development. Inventory will be the highest it has been since 2007, when 8,052 new units were listed.


A rendering of 100 Barclay, built in 1927 and most recently the Verizon Building.CreditWilliams New York

“From one-of-a-kind boutique buildings to soaring luxury towers, an incredible variety of new development will enter the marketplace,” saidKelly Kennedy Mack, the president of Corcoran Sunshine Marketing Group. All across the city, she said, “we are seeing more new residences than we have in years.”

A roster of highly anticipated towers in and around the West 57th Street corridor, known as Billionaire’s Row, are in the beginning stages of construction, with plans to open sales in the coming year.

“All eyes are going to be on this prime Midtown market,” Ms. Kennedy Mack said.

Among them is 111 West 57th Street, at approximately 1,400 feet tall, a condo tower and conversion of the landmark Steinway building by JDS Development Group and Property Markets Group, the same team that developed Walker Tower, which broke a downtown record last year with the sale of a $50.9 million penthouse.

Also commanding attention: the Jean Nouvel-designed 53W53, a tower near the Museum of Modern Art measuring roughly 1,050 feet tall, undertaken by Hines, Goldman Sachs and the Pontiac Land Group of Singapore; and Vornado Realty Trust’s 950-foot building at 220 Central Park South, designed by Robert A. M. Stern Architects with interiors by the Office of Thierry W. Despont. On the Upper East Side, 520 Park Avenue, a 54-story limestone-clad condominium, developed by Zeckendorf Development with Park Sixty and Global Holdings, has already grabbed headlines for its 31 residences, ranging in price from $16.2 million for the least expensive full-floor apartment to $130 million for the triplex penthouse.




Do you think the Spring Real Estate market will be the best in five years?

Ten Things to Know About 1031 Exchanges

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Ten Things to Know About 1031 Exchanges

Tax nerds may be able to spout off Internal Revenue Code Sections, but most people never get beyond 401(k). (That’s right, your workplace retirement savings plan is named after a section of the tax code.)

Still, “Section 1031″ is slowly making its way into daily conversation, bandied about by realtors, title companies, investors and soccer moms. Some people even insist on making it into a verb, a la FedEx , as in: “Let’s 1031 that building for another.” (While Section 1031 isn’t restricted to real estate, that’s clearly where most of the discussion takes place.)

So what is 1031? Broadly stated, a 1031 exchange (also called a like-kind exchange or a Starker) is a swap of one business or investment asset for another. Although most swaps are taxable as sales, if you come within 1031, you’ll either have no tax or limited tax due at the time of the exchange.

In effect, you can change the form of your investment without (as the IRS sees it) cashing out or recognizing a capital gain. That allows your investment to continue to grow tax deferred. There’s no limit on how many times or how frequently you can do a 1031. You can roll over the gain from one piece of investment real estate to another to another and another. Although you may have a profit on each swap, you avoid tax until you actually sell for cash many years later. Then you’ll hopefully pay only one tax, and that at a long-term capital gain rate (currently 15%).

Warning: Special rules apply when depreciable property is exchanged in a 1031. It can trigger gain known as “depreciation recapture” that is taxed as ordinary income. In general, if you swap one building for another building, or one machine for another machine, you can avoid this recapture. But if you exchange improved land with a building for unimproved land without a building, the depreciation you’ve previously claimed on the building will be recaptured as ordinary income.

Such complications are why you need professional help when you’re doing a 1031. Still, if you’re considering a 1031–or just curious–here are 10 things you should know.

1. A 1031 isn’t for personal use.

The provision is only for investment and business property, so you can’t swap your primary residence for another home. There are ways you can use a 1031 for swapping vacation homes, but this loophole is much narrower than it used to be. For more details, see No. 10.

2. But some personal property qualifies.

Most 1031 exchanges are of real estate. However, some exchanges of personal property (say a painting) can qualify. Note, however, that exchanges of corporate stock or partnership interests don’t qualify. On the other hand, interests as a tenant in common (sometimes called TICs) in real estate do.

3. “Like-kind” is broad.

Most exchanges must merely be of “like-kind”–an enigmatic phrase that doesn’t mean what you think it means. You can exchange an apartment building for raw land, or a ranch for a strip mall. The rules are surprisingly liberal. You can even exchange one business for another. But again, there are traps for the unwary.

4. You can do a “delayed” exchange.

Classically, an exchange involves a simple swap of one property for another between two people. But the odds of finding someone with the exact property you want who wants the exact property you have are slim. For that reason the vast majority of exchanges are delayed, three party, or “Starker” exchanges (named for the first tax case that allowed them). In a delayed exchange, you need a middleman who holds the cash after you “sell” your property and uses it to “buy” the replacement property for you. This three party exchange is treated as a swap.

5. You must designate replacement property.

There are two key timing rules you must observe in a delayed exchange. The first relates to the designation of replacement property. Once the sale of your property occurs, the intermediary will receive the cash. You can’t receive the cash or it will spoil the 1031 treatment. Also, within 45 days of the sale of your property you must designate replacement property in writing to the intermediary, specifying the property you want to acquire.

6. You can designate multiple replacement properties.

There’s long been debate about how many properties you can designate and what conditions you can impose. The IRS says you can designate three properties as the designated replacement property so long as you eventually close on one of them. Alternatively, you can designate more properties if you come within certain valuation tests. For example, you can designate an unlimited number of potential replacement properties as long as the fair market value of the replacement properties does not exceed 200% of the aggregate fair market value of all the exchanged properties.

7. You must close within six months.

The second timing rule in a delayed exchange relates to closing. You must close on the new property within 180 days of the sale of the old. Note that the two time periods run concurrently. That means you start counting when the sale of your property closes. If you designate replacement property exactly 45 days later, you’ll have 135 days left to close on the replacement property.

8. If you receive cash, it’s taxed.

You may have cash left over after the intermediary acquires the replacement property. If so, the intermediary will pay it to you at the end of the 180 days. That cash–known as “boot”–will be taxed as partial sales proceeds from the sale of your property, generally as a capital gain.

9.You must consider mortgages and other debt.

One of the main ways people get into trouble with these transactions is failing to consider loans. You must consider mortgage loans or other debt on the property you relinquish, and any debt on the replacement property. If you don’t receive cash back but your liability goes down, that too will be treated as income to you just like cash. Suppose you had a mortgage of $1 million on the old property, but your mortgage on the new property you receive in exchange is only $900,000. You have $100,000 of gain that is also classified as “boot,” and it will be taxed.

Read More…


More info from NAR:  NAR Field Guide to 1031 Exchanges


One thing is certain:  do not miss the opportunity to do an exchange if you can.

Investor Clubs Save Money On Real Estate Fees

Investor Clubs come together to get the best price on assets. They share resources and often deals. They often syndicate their deals with other members and provide funding sources.

Investor problem one:  Real Estate Fees:

Getting the best deal often involves getting off-market assets. This, however, requires the investors to pay 3% commission out of their own money. The price often does not offset this fee. We have a solution to this.

At Real Estate Fee Busters we provide a rebate or fee reduction back to the buyer or seller when you use one of our 97,000* Realtor agents in the USA. Therefore, not only do you save the 3% (off market real estate fees) you get a 10% credit of your Realtors Real Estate commission at closing based on the sale price.

Your savings come from a credit at closing equal to 10% of the commission earned on the listing or buying side of the transaction depending upon the purchase and/or selling price of the home or property.

Coldwell Banker Brokerage is pleased to offer the Real Estate Assistance Program (REAP) for your company and organization.  Read More: 


We can help you when you want to buy on Market Assets. Real Estate Assistance is a real estate benefits program that is available exclusively through Coldwell Banker Brokerage. For both Residential & Commercial.

HELP YOUR Organization ENROLL 

INVESTOR PROBLEM TWO: Multi-state Coordination

Working across states:  Investors often work multiple locations at once. Often, because of syndication this can be difficult to coordinate. It’s even harder when Brokers have difficulty coordinating with each other. Our Brokers are networked with the same parent company. Designed for National deals.  Read More: 

Investor Problem Three: Build Out

Investors and developers of multi-family or condos know that the difficulty after the buy and development or rehab is getting the property leased or sold. Your debt service is based on this build out being on schedule, within budget and keeping Real Estate fees low.

This program can be used for both Residential and Commercial real estate. Developers can use it to buy commercial or residential real estate, then can assist the build out by making it available to the HOA.  HOAs can join themselves when the management is transferred to the HOA. This assists condo owners in their sales ensuring fewer vacancies on the property.  Read More:

Is saving 10% of your Real Estate fees incentive to buy on-market assets?


CoStar’s U.S. Composite CRE Price Index Approaches Prerecession Peak Levels Property Price Indices Post Double-Digit Annual Gains

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The two broadest measures of aggregate pricing for commercial properties within the CoStar Commercial Repeat Sales Indices (CCRSI)–the value-weighted U.S. Composite Index and the equal-weighted U.S. Composite Index–increased by 0.9% and 1.2%, respectively, in the month of May 2014, and have increased 11.4% and 11.7% respectively, year over year, reflecting a broad improvement in market fundamentals seen across all property types. 

The value-weighted U.S. Composite Index, which is heavily influenced by core property transactions, has now risen within 1% of its prerecession peak level reached in 2007, while its equal-weighted counterpart, which is more influenced by smaller non-core property sales, has recovered to within 20% of its 2007 high water mark. 

This month’s CoStar Commercial Repeat Sale Indices (CCRSI) provide the market’s first look at May 2014 commercial real estate pricing and is based on 1,282 repeat sales in May 2014 and more than 125,000 repeat sales since 1996. 

Momentum Picks Up in The General Commercial Segment

Within the equal-weighted U.S. Composite Index, the U.S. General Commercial Index, which includes lower-tier properties, advanced by 12.7% for the 12-month period ended in May 2014, while the U.S. Investment Grade Index, which broadly encompasses upper-middle tier properties, expanded by 7.0% for the same time period. 

As pricing for core assets has continued to rise, investment activity has moved further out on the risk spectrum to include a broader scope of markets and property types, which has pushed up pricing at the low end of the market. 

Improvements in Market Fundamentals Underpin Growth in Commercial Property Pricing

Net absorption for the three major property types – office, retail, and industrial – climbed to 369.5 million square feet for the year ending in the second quarter of 2014, an increase of 1.6% from the prior 12-month period. 

Although the most recent annual absorption total is still just 60% of annual demand gains posted in 2007, with current low construction levels it was enough to lower vacancy rates below the trailing 10-year average for the office and retail sectors, while the average vacancy for the industrial sector is now below pre-recession levels. 

Reflecting recent movements in pricing at the low end of the market, net absorption in the General Commercial segment increased by 9.8% for the year ending in the second quarter of 2014, compared with a decline of 1.5% in the Investment Grade segment. 

Distress Levels Continue To Dissipate

The percentage of commercial transactions involving distressed assets has declined to 10.5% in May 2014 from over 17% one year earlier. in the multifamily and industrial sectors, the distress share of total sales fell into the single digits, while it remains comparatively high at 11% in the retail sector and 17% in the office sector, suggesting there is more room for pricing appreciation. 

The share of distress trades in late-recovery markets such as Chicago, Atlanta, and Detroit remain near 20%, while in the early-recovery, coastal markets of Los Angeles, San Francisco and San Jose, distress levels are nearly non-existent. 


Good NEWS:  Bad NEWS:

Many of our investors used the distressed levels to make large gains in the Real Estate market, leveraging the distressed factor to acquire assets for later sale.  This will bring us full cycle as those investors sell high from the low purchase level  years ago.  So what now?  There are still assets left that are distressed, however, it is time to shift strategy as the commercial market begins to climb.  What do you think the new strategy should be?

Buying Bulk REO: The Rocky Road to Bulk Buying

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Buying Bulk REO: The Rocky Road to Bulk Buying

Right now there are huge  packages of REO being circulated among investors. The packages range from Nationwide packages to individual state packages.  In the last week I spent hours getting my investors ready, aimed and shooting at these packages. Not one of my investors was able to get the package.

“Why not?” you ask.  The answer is simply that  smaller investors get eaten by the larger investor.  This happens all the time and no one can control it.  How does this work and how can you navigate this Rocky Road?

It actually is quite simple:

  • A list comes out and is populated to investors by brokers like me.
  • The list always has a protocol: written by the asset manager, seller or bank
  • The protocol always asks for NCND (Non Compete Non Disclosure  Agreement), a (LOI) Letter of Interest and a MFA (Master Fee Agreement (so the brokers get paid).
  • Buyer follows the protocol and this gets submitted to the Asset Manager or Seller.
  • The seller then fills the order and the due diligence process begins
  • If the buyer is satisfied, then we go to close on the assets.

Isn’t that simple?  Really.  Here’s what happens:

  • Buyer gets the list and wants the addresses.
  • Brokers tell them to follow the protocol and we can submit it.
  • Buyers don’t:  They don’t want to sign the paperwork without seeing the addresses.  They can’t get the addresses without submitting the paperwork. (It’s a stand-off).
  • A number of days later they have finally submitted all the paperwork (one piece a day at a time).
  • We then submit it.
  • A few days later the seller comes back with one of three options:
    • The address and more info
    • It’s sold:  Big buyers get the priority.  CASH is King and the they have taken all the smaller investors out of play. Also the big players already know how to fill their paperwork out and don’t make mistakes.
    • Buyer did something wrong and the application is rejected (start again).
  • If the big players leave anything then they start to fill the smaller LOIs
  • If the client has gotten his LOI through then we start the due diligence period.

Simple process, but it comes down to competitive positioning.  The larger the buyer, the more power they have to take the deal down. Smaller buyers get walled up.  So what happens and how can the smaller buyer play? Well let’s examine what the big buyer does after they buy: they start to pick apart their package and find that there are some assets they don’t want.  Guess what they do:  yes, they send it back out to us to sell off.  This is where the smaller buyer gets their foot in the door.  They do not get the asset at the 50% or even 60% that the larger buyer gets it.  But they can get the resale at 30% below retail.  And of course, not a large package and it’s not first pick of the assets. They are the cast offs that the large buyer didn’t want.  Still valuable, but not prime.

The problem is the smaller buyer wants these at 50, 60%.  They think because they buy in the millions that they are large buyers.  And they think that the asset managers fill orders on a first come first serve basis.  They do, but its first in and largest Dollars in basis. So if you submit a $10M package and later in the day the asset manager gets $200M package, it’s the $200M that comes in first.  All in all it is worth the effort to find and buy bulk assets.  It’s just a bumpy road to acquisition.

It is important to remember in all this: Don’t Shoot the Broker:  we’re just following protocol and we do not control the Asset Managers.

If you have interest in bulk assets don’t forget to sign up for the Hot List:



Bank of America found liable for Countrywide “Hustle” program

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Bank of America found liable for Countrywide “Hustle” program

Bank of America has been found by a federal jury to be liable for the Countrywide Financial “Hustle” program, wherein Countrywide employees knowingly sold bad home loans to Fannie Mae and Freddie Mac. The penalties the bank now faces could approach $850 million, not to mention a $40 billion in court costs they’ve racked up since the 2008 acquisition of Countrywide.

The lawsuit named Bank of America, and former Countrywide executive, Rebecca Mairone, alleging that the “Hustle” program (which stood for the “High Speed Swim Lane”) was a deliberate move to do away with the standard challenges of loan approval, and that ignoring these underwriting standards and safeguards, Countrywide was able to quickly sign off on millions of dollars worth of loans they would never have been able to make otherwise. The most damming allegation is that Countrywide set this program up so they could sell the home loans to unsuspecting Fannie and Freddie in short order.

$850M in loans defaulted, feds say

Nearly half of all loans sold by Countrywide as part of the Hustle defaulted, leaving their new owners at Bank of America holding the bag. The federal jury found Bank of America liable on one civil fraud charge of deceiving Fannie and Freddie and failing to disclose their illegal process. The $850 million penalty the Department of Justice (DOJ) is requesting is the amount Fannie and Freddie lost on these loans.

Initially, under the False Claims Act, triple damages were sought, claiming that Countrywide made fraudulent claims for payment to government officials, but because Bank of America lawyers successfully argued that Hustle ended before Fannie and Freddie were bailed out by the government, the judge dismissed the charges.

Bank of America continues to assert that Hustle ended before they acquired Countrywide, and has stated that the original intent of the program was to expedite, not skirt the home loan process. They will likely appeal the jury’s decision.

Focus on Rebecca Mairone

Former Countrywide executive, Rebecca Mairone is now at JPMorgan Chase, overseeing the foreclosure-review department who, despite yesterday’s ruling finding her guilty of civil fraud, maintains her innocence.

Dr. L. Randall Wray, Professor of Economics at the University of Missouri-Kansas City and Senior Scholar at the Levy Economics Institute of Bard College, details his public battle with Mairone  a few years back when he published a piece in the Huffington Postcalling for Bank of America to be put into receivership, and Mairone was tasked to counter in the same publication.

Dr. Wray points out that Mairone failed to address any of the allegations he made of illegal behavior. “Stop the fraudsters,”Dr. Wray writes.   “Stop the foreclosures. There should be an immediate 5 year Country-Wide moratorium on foreclosures. Investigate the fraud. Jail the fraudsters. Put the biggest banks into receivership. Begin to clean-up the document mess created by the banks and MERS (the banks lost or destroyed all the records of property ownership). Our economy will not recover until this is done.”

Do you believe this is just the tip of the iceberg?

How to Calculate CAP Rate

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If you want to invest in commercial property, you need math tools to make investment decisions in Commercial Assets.

This video gives you the calculations needed to understand and communicate about an investment.

This is the best and simplest explanation I found.  I hope you appreciate

the tutorial. Rate


Cher has moved to Coldwell Banker.  As such, I will  have more

access to commercial pocket listings to offer more variety on

the Cher’s HOT LIST. Don’t forget to subscribe.

Subscribe to the HOT List of properties, Hotels & notes: Subscribe to Cher’s Hot List

Check out our new site:

Here’s all the updated contact info:

Commercial Real Estate: Cher’s Properties
Linked In:
Follow us:
Facebook For Real Estate Investors
Ask me how to save money on Real Estate fees with our Corporate Discount Program: Coldwell Bankers Advantage
Subscribe to the HOT List of properties, Hotels & notes: Subscribe to Cher’s Hot List


Economists temper housing bubble worries

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Interest rates, lower investor interest, higher inventory

may slow home price appreciation

Jun 10, 2013

Bubble image via Shutterstock.Bubble image via Shutterstock.

ATLANTA — Although home prices are likely to continue to rise in the next few years, the national market is not in danger of a bubble, according to prominent economists.

“Four of the next five years are likely to be improving years in the housing market. I don’t say five because there’s always the possibility of little hiccups in the housing market,” said Lawrence Yun, chief economist for the National Association of Realtors.

“But we will still be shy of the bubble years of 2005.”

Yun spoke on a panel at the National Association of Real Estate Editors conference in Atlanta Friday along with Jed Kolko, chief economist for real estate search and marketing site Trulia, and Mark Fleming, chief economist for real estate data and analytics firm CoreLogic.

“Right now we are not in bubble trouble, even though prices are rising as fast as we saw in last decade’s bubble,” Kolko said. Prices are still 7 percent undervalued relative to incomes and rents, he said.

By contrast, home prices were 39 percent overvalued during the housing boom with some areas overvalued by up to 80 percent, he added.

Kolko said there is no sign of overbuilding and little sign of overborrowing. “Prices would have to keep rising at the current rate for several more years to put us back in bubble territory,” he said.

He anticipates three factors will stem price appreciation before that happens: higher mortgage rates, fading investor interest and more for-sale inventory. Higher mortgage rates will likely dampen, but not kill, housing demand — even an increase to a 5.5 percent interest rate is still historically low, and buying would still be 33 percent cheaper than renting at that rate, he said.

Indeed, interest rates would have to rise to more than 11 percent for renting to be cheaper than buying, he said.

“Of course, it’s different for different markets,” Kolko added, and his calculations assume borrowers will stay in their homes for seven years, among other assumptions.

recent analysis by Trulia found that prices were overvalued in nine of 100 major metros: the California metros of Orange County (overvalued by 9 percent), Los Angeles (5 percent), San Jose (3 percent) and San Francisco (2 percent); the Texas metros of Austin (7 percent), San Antonio (5 percent) and Houston (2 percent); Portland, Ore. (1 percent); and Honolulu (0.01 percent).

Rising prices and flattening single-family home rents will curb investor interest, Kolko said. That will also affect demand and therefore limit upward pressure on prices.

Low inventory has contributed to skyrocketing price appreciation, making it a necessary part of the recovery, Kolko said. But inventory will begin to rise as would-be sellers get off the fence and put their homes on the market, he said.

Rising prices have brought many homeowners from underwater, making them eligible to sell again, but negative equity is not the only factor at play in their decision.

“Prices have been rising for 15 months,” but inventory has not risen in that time, Kolko said. The reason behind that hesitance has to do with homeowner attitudes: “No one wants to sell at the bottom. Why would you sell if you could wait six months or a year?”

CoreLogic’s Fleming said home value peaks during the bubble years still loom large in homeowners’ minds.

“People have reservation prices. They are not going to bring the house on market until it gets there,” he said.

Fleming noted that the biggest problem plaguing the housing market is lack of equity. Given rapidly rising home prices, he expects the number of homeowners with negative equity will be back down to a historical norm of less than 1 percent in five to seven years.

All three economists said the housing recovery was on track. Yun said there was no danger of the economy slipping back into recession.

“Home price growth is rising very, very fast. Housing wealth is easily offsetting the impact of sequestration,” he said, referring to tax hikes made earlier this year at the federal level. Yun projects home prices for existing homes will rise 8 percent this year, followed by 5 percent next year.

He warned, however, that if price growth continues to easily outpace income growth, it will affect home affordability and run the risk of “creating haves and have-nots. The owners are smiling (and) the non-owners are frustrated that they cannot participate in” the market, he said.

Yun noted the national homeownership rate currently stands at 65 percent, down from a peak of 69 percent.

“I think it’s going to go to 63 percent possibly, before stabilizing,” he said, though he cautioned that that doesn’t mean the housing market will decline. Younger generations will pull down the average, he said.

Yun expects existing-home sales to rise 6.7 percent this year to 4.97 million before rising to 5.3 million and 5.7 million in 2014 and 2015, respectively.

“Home sales are essentially coming back to the (homebuyer) tax credit-induced sales (of 2010) even without the tax credit because of the better economy,” Yun said. But sales are still only at 71 percent of the past peak, he added.

– See more at:

Get your deal funded: Let Private Lenders find You

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For most experienced Real Estate investors, finding funds should not be a difficult process. In order to make it easy we’ve reversed the process to allow lenders to find you.  We borrowed this from the Venture Capital world: pitch your deal and the lenders come forward.  For example, we offer a free exchange on our site: Dream Capital Corp for Private Lenders and investors seeking over $300K loans for Real Estate. Our private lenders register and are able to see loans that meet their lending criteria.  The information for the deal is scrubbed so they do not see name or contact info but only the deal details.  Deals or loans are entered on the site by borrowers/investors.  This exchange allows borrowers/investors to be found.

Our Private Lenders have their own terms, so borrowers will be contacted with more information to move their deal forward.  These deals are available to Private Lenders, as well as Semi-Institutional lenders. What are semi-institutional lenders? Typically they are private capital companies that invest and lend in real estate deals. Once your loan is entered, lenders will express an interest and more information will be sought.

On April 25th we are giving investors the opportunity to pitch their deal live in NJ to  private investors:  or

Don’t worry, if you’re NOT in New Jersey you can still pitch your deal here .  We’ll match you to a lender and you’ll be able to pitch your deal on a conference call.

We have a pitch template that you can use.  Email us at for the template.

Of course, if you are looking for private lenders and are over $300K follow this link to input your deal:  If you are international contact us for an intake sheet for your project. International deals start at $1M for commercial only.  We represent hundreds of lenders for your commercial projects.

If you are a lender looking for deals, you can register at To qualify you will need to be able to fund $300K deals.

IN NEW JERSEY?  Attend our event on Wednesday and pitch your deal live to Private Lenders:


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