Mid-Day Market News & Commentary by Chris McLaughlin, November 6, 2008
http://www.shortsalesriches.com/welcome.html
We knew it was coming, but the negative news from retailers today weighed on the markets, sending stocks tumbling for the second day, with the Dow Jones Industrial Average dropping 443.48 to 8,695.79. Department stores like Penney reported a 13% drop in same store sales, Macy’s dropped 6.3%, and Target Corp. slid 4.8%. But the luxury stores were hit the most, with Saks Inc. declining 16.6% and Nordstrom slipping 15.7%.
There was one bright spot for most US consumers, especially Realtors who drive clients around: crude oil plunged 7% amid concern of a global economic slowdown. U.S. crude prices dropped $4.53 to $60.77 a barrel, well below the high of $147 a barrel reached in July. The decline, while bad news for oil companies, will mean further relief at the pump for many Americans and a possible uptick in sales for large SUVs.
Now, on to our real estate investor section…
Top 5 Growth Markets for Short Sale Investors
Ever wonder where people are moving? According to recent data published by the US Census, the top projected growth markets for the nation between now and 2030 are as follows:
1. Arizona
2. California
3. Florida
4. Nevada
5. Texas
The first thing any short sale investor should notice is that “Growth” is ranked – not total population. Growth represents the percentage of population increase rather than existing population. This is an important concept when it comes to the purchase of any real estate investment because growth is equal to demand. The greater the demand the greater future appreciation and future value of the land and property. When deciding where to buy your next short sale investment property select a combination of affordability and growth potential for a win-win combination.
If growth markets are where the future values lies then it should come as no surprise that dying markets should be avoided at all cost. According to the same data, there are three areas actually losing people even while the rest of the nation shows an increase in population due to birth rates, longer life-span and immigration.
Think twice before investing in real estate in these states; you need to be cautious as there are more people leaving the area than coming in. Less people means less demand and less demand will eventually lead to lower prices and little to no future appreciation. To add insult to injury, property taxes are likely to increase on those remaining property owners in an attempt to provide basic services with declining revenue base. Dying markets include:
1. Washington DC (although this could be reversed with a new Administration coming to DC)
2. North Dakota
3. West Virginia
While selecting a growing or contracting market is one piece of the puzzle when it comes to making an informed real estate investment decision, it’s not the only one. Price, location, return and more are each important aspects to consider before purchasing any short sale property.
See you at the top!
Chris McLaughlin, J.D., M.B.A.
web: http://www.shortsalesriches.com/welcome.html
e-mail: info@shortsalesriches.com
Phone: (800) 452-7627
P.S.: Want to learn how a 27 year old kid makes six figures a month flipping short sales? Join us TONIGHT, Thursday, at 9 PM EDT and 6 PM PST by registering for our fr’ee webinar:
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