Sorry for the late distribution. I was in Reno for 5 days.
Let me know if you have any other questions.

1. Economy:

According to may guru’s or economists, the economy is getting better every month. The second quarter was at GDP of (1%), but they expect the GDP to be 1% in third quarter and 2% in fourth quarter of 2009

The consumer is clearly still not spending a lot of money. They are still saving at about 4 – 5%. Compare that to a no saving from about 2006 to 2009.

The cash for clunkers is a success, as people perceive it to be a good deal.

2. Financial market:

The banking index went from $34 to $42 in 2 months
Banks are still taking advantage of the 0.25% funds available to them
Financial institutions are going to give out enormous bonuses again this year
REITS went up more than 6 % in one day

3. Mortgage markets:

Loans still not easy (enough) to get. Requirements still too high
New MDIA ( mortgage disclosure improvement act).
The appraisal market is killing many deals due to out of area appraisers
Banks are killing many deals because of slow short sales processes
Banks are still killing deals because of stupid REO purchase rules.
Banks policies and procedures are preventing real estate to stop declining

4. Real estate:

June new home sales rose 11%
Case Shiller indicates home prices are rising now
Depending on where you read your news about foreclosures, they are either declining or still too high. I am sure it is area dependent
Existing/pending home sales up for the 5th month in a row.
Sales of new homes hits 8 year high.
SFR’s and small residential properties very much in demand
Investment properties having a tough time to sell. CAP rates on the rise everywhere. If you have the money today, you can get a great ROI on properties.

Market trends:

(see forms printed).



Conclusion:

As I indicated last month, the property demand is high, and there is lots of competition. Multiple offer scenario’s occur frequently. Prices are on the rise. Specifically for SFR’s and small income properties, like duplexes.

The unemployment factor still in my opinion an unknown factor for the future or real estate, but the economy indicates that it can be absorbed.

The market has seemingly turned. Get your act together now if real estate is one of your asset classes.

Thanks
Antoine