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"Market conditions improved across the board, even from the rather strong level of 3 months...

"Market conditions improved across the board, even from the rather strong level of 3 months ago," says the NMHC, reporting on the apartment market. The Market Tightness Index moved to 74 from 60, and measures tracking the availability of financing also improved.
Comments (9)
  • Anybody missing what this portends for future home sales has blinders on.
    26 Apr 2012, 01:33 PM Reply Like
  • This data has no implication for future home sales. A logical person who looks at the survey questions and studies the chart data--rather than simply glance at the headline--will not draw your overreaching & arrogant conclusion.

     

    The data suggests that apartment rents will remain firm in the future, at least near term. Maybe this will inspire additional apartment construction, but that's still speculation.

     

    Single-family homes? Fuggetaboutit. There is nothing in the survey that implies anything about single-family housing.

     

    There is no correlation between apartment tightness and housing starts or home prices. Examine the "tightness" chart and compare it to historical charts for home prices and housing starts. No correlation.
    27 Apr 2012, 03:21 AM Reply Like
  • WSD:

     

    The rental-cost versus home-equivalence is crossing over, as we speak, and the above just confirms that this will get more disparate rather rapidly. This will make home purchases more attractive and will gradually dispel the myth that people don't want to own homes any more, as the laws of economics always do.

     

    Feel free to consider that an "arrogant" assessment.
    27 Apr 2012, 05:36 AM Reply Like
  • You seem to have this idea that those seeking housing are like those buying fruit. "Gee, the blood oranges are as cheap as Valencias today, so I'll buy the blood oranges."

     

    Those seeking apartments do so for many other reasons: Mobility, lack of ability to get a mortgage, cheaper than buying a house, no commitments, closer to job, no owner headaches, etc.)

     

    When was the last time you talked to a number of people in the age group of those moving out of their parents' houses? Surely South Florida has a few people under 50.

     

    Demand for apartments is high and will continue to be high for many, many years. Nearly anyone can rent an apartment of some sort. The same is not true for single family housing--not by a long-shot.

     

    Take those blinders off.
    27 Apr 2012, 10:39 AM Reply Like
  • WSD:

     

    I've been doing what I do for a very long time. I buy against the "CW" and the "known" facts because invariably they turn out to be incorrect about 90% of the time. As rents climb well above ownership cots, the demand for housing will rise, as will sales and prices. I don't care if it takes 20 years for it to return to some previous level. I only care about the direction and the related impact on issues that serve that market.

     

    Most of the apartment-related issues have already had sizable appreciation based on the already-obvious realities. there's lots less opportunity buying all the stuff that everybody else has already identified. The larger gains get made buying things that people write off or dismiss, as lacking opportunity.

     

    And, it's always this way. Nothing makes me salivate more when I see proclamations being made that "such and such is a generational change, and we won't see improvement for decades or a lifetime." This kind of philosophical pap is almost never correct, and, unamazingly, the laws of economics do affect monetary flows. So, as rents climb ever higher, more money will revert to home ownership, as sure as the sun comes up each day.

     

    So, for realty, what have I done, and would suggest to others?

     

    I bought commercial and residential REITs with sizable yields. I bought a few home builders that had convertible issues, so I could harvest the elevated yields and await appreciation. (Actually, I've enjoyed both already.) I bought various domestic and global realty funds, offering holdings in medical properties, hospitality, and realty development. Again, yield with growth potential.

     

    All the above pay handsome yields and have mostly moved steadily higher over the past three years. I expect even better times ahead.
    27 Apr 2012, 11:12 AM Reply Like
  • Let's not forget that your original comment clearly reflects that you didn't even look beneath the headlines. It was quite arrogant for being so ignorant of the underlying data.

     

    This is my last comment. I could spend a lifetime correcting your incorrect assessments of current economic data. In the end, you don't care about any of the facts or trends, as sure as the sun comes up each day.
    27 Apr 2012, 11:22 AM Reply Like
  • WSD:

     

    I care about making money, which, I thought was the principal objective. It's those making the persistent negative conclusions about all the data that have been both incorrect and left behind by the market. Most of them don't seem too happy, either.
    27 Apr 2012, 11:28 AM Reply Like
  • "It's those making the persistent negative conclusions about all the data that have been both incorrect and left behind by the market."

     

    Wrong again. Learn about the 10-year performance of Jim Rodgers, George Soros, and others who understand economics, currencies, and commodities.

     

    It's the people with your mindset who have barely kept up with inflation--at best.
    27 Apr 2012, 11:41 AM Reply Like
  • What do Rogers and Soros have to do with buying undervalued sectors? I'm just supposed to quiver because you mention their names? No average investors can do what the billionaires do. And, a lot of their commentary is just hot-air publicity-seeking punditry. Lastly, why would I persist in what's been a very profitable strategy for me for over 17 years, if it weren't so.

     

    I have herein, and in many previous threads, provided specific information on what I do, why and how it's worked. I've also provided specific investment suggestions. All you seem able to do is tell me I don't know what I'm talking about. I'll leave it to readers to decide what's more useful information to digest and consider.
    27 Apr 2012, 11:47 AM Reply Like
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