Month: February 2011
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Denver Likely to Post 13.1% Profit in 2011
The Denver area has been a historically stable real estate market for both owners and investors. Market values experienced a downward correction following the financial crisis of 2008, showed signs of stabilization as 2009 transpired, but that stabilization was short-lived, as the market experienced volatility moving out of 2009 and into 2010. Currently, approximately 35%…
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Money Mischief
By now, most people have heard about the second round of “Quantitative Easing” being conducted by the Federal Reserve. In short, this means that the Fed will be purchasing treasury bills with freshly printed money to inject more cash into the monetary system. To date, most of this additional liquidity has been limited to banks…
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Double-Dip Recession
The recent financial news has been abuzz with exhortations over the anticipation of an end to the recent financial calamity. The stock market has already discounted this optimism into its valuation, as current market values represent a multiple of forecasted earnings per share well in excess of historical trends. The conventional wisdom is that the…
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Keeping Housing Fair
In 1968, the Fair Housing Act was adopted by congress, and amended in 1988 to increase the role of enforcement for the department of Housing and Urban Development (HUD). One of the most important points for fair housing enforcement is the fact that discrimination against protected classes is prohibited for home sales, rental housing, and…
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Re-Inflating the Debt Bubble
Reading the news has never been the best way to inspire optimism. This phenomenon has never been more true than it is today for financially astute people that are aware of causes and consequences. In a recent press conference, the US President was touting a new blitz of government programs to get the US economy…
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Almost 20% Profit on Phoenix Properties Expected in 2011
Market values in Phoenix are currently at approximately the same level as in the year 2000. The market area experienced a tremendous run-up during the real estate bubble and a spectacular during the financial crisis. During 2010, the regression back to fundamentals continued in Phoenix. For people who bought at the wrong time, this value…
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Predicting Inflation for 2011
The general price level in 2010 relative to 2009 shows average price levels that are nearly flat. The reason for this trend is significant commodity price increases in 2007 and 2008 that collapsed after the global financial crisis. Much of the reason for the price volatility in commodities is leveraged buying and selling through hedge…
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A Dollar is NOT a Dollar
One of the most important concepts for investors to understand is that a dollar today is not the same as a dollar yesterday, and is not the same as a dollar tomorrow. Over time, inflation erodes the purchasing power of currency. This is critically important, because most people focus on the nominal change in the…
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Real Estate Trends for 2011 – Solomon Success Predictions
One of the most impactful news items heading into 2011 is the announcement by Bank of America that foreclosure activity is being suspended1, and the decision by government agencies to increase scrutiny on the foreclosure process. In the wake of this announcement, nobody completely knows how long this increased scrutiny will last, how intense it…
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Orlando, FL, Investors Can Expect a 22.5% Return This Year
The city of Orlando experienced a tremendous increase in market prices from the year 2000 through 2006, and a downward correction in prices since the beginning of 2007. As 2010 concludes and 2011 unfolds, we expect to see prices stabilize and regress toward a long-term linear growth trajectory. Currently, approximately 68% of listings are from…