We discussed several issues associated with residential sector such as single family and multifamily, green development, and appraisal.
We began with talking about house inventory level in DFW area, pretty interesting point was that, in this economy downturn, construction is still going on. Economically, it make sense that multi-family housing assume to be performing very well next few years because many future home buyer, especially younger home buyer, may not afford to get mortgage from bank, furthermore increased foreclosure rate and job loss make people more scare to buy house. Under these circumstances, lease demand will be steadily increased next few years, furthermore, judging from recent material price index, price has decreased almost double compare to year age, which means investor could take advantage until the material is cheaper to build.
According to market survey, building permit has increased during 2009. One of reason for this is probably government stimulus program that make some developers feel much wormer than reality, however, so far, It still be suspicious construction recovery has begun or not.
D. R. Horton, one of major home builder, has released a 50.5milion profit in June this year, the company said that home buyer tax credit was one of reason that they recoded pretty good performance, on the other hand, there is some kind of criticism on the market participant because D. R. Horton has cut the house price significantly for recovering their massive loss occurred the last year.
We began with talking about house inventory level in DFW area, pretty interesting point was that, in this economy downturn, construction is still going on. Economically, it make sense that multi-family housing assume to be performing very well next few years because many future home buyer, especially younger home buyer, may not afford to get mortgage from bank, furthermore increased foreclosure rate and job loss make people more scare to buy house. Under these circumstances, lease demand will be steadily increased next few years, furthermore, judging from recent material price index, price has decreased almost double compare to year age, which means investor could take advantage until the material is cheaper to build.
According to market survey, building permit has increased during 2009. One of reason for this is probably government stimulus program that make some developers feel much wormer than reality, however, so far, It still be suspicious construction recovery has begun or not.
D. R. Horton, one of major home builder, has released a 50.5milion profit in June this year, the company said that home buyer tax credit was one of reason that they recoded pretty good performance, on the other hand, there is some kind of criticism on the market participant because D. R. Horton has cut the house price significantly for recovering their massive loss occurred the last year.
One of interesting article came up on the discussion was reappraisal issue on Florida state, because the stat want to know what losses BP oil spill brought to property and may want to charge compensation responsibility on BP. I think, this reappraisal could be double edge sword, if property value has decreased result from reappraisal, the state government will lose huge amount of tax bases.
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