1,052,321
Wait. Where are you seeing this rise in cap rates?
Cap rates for what property type?
I am just not seeing cap rates anywhere NEAR 2007 levels for any Class A/B property type (most are below 8, multifamily below 7!). Class C in some property types (8s-9s) are still beneath 2007 cap rates (which were in the 11s)
Source: CBRE Cap Rate 1H 2016
Source; MIT Chervachidze/Wheaton 2011
Has the industry set itself up for another disastrous value decline?
Probably, but that's because folks never learn. 3:)
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Ron and Alexandra Seigel
Carpinteria, CA
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Lyn Sims
Schaumburg, IL
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Candice A. Donofrio
Fort Mohave, AZ
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Nina Hollander, Broker
Charlotte, NC
1,543,853
No, it has not.
We always knew rates were going up in 2017.
CAP Rates vary from market to market, not all markets would concur with your #'s.
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Debe Maxwell, CRS
Charlotte, NC
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Dorie Dillard Austin TX
Austin, TX
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Thomas J. Nelson, REAL...
La Jolla, CA
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Candice A. Donofrio
Fort Mohave, AZ
679,404
Hmmmm, I am believing that our leadership will make decisions that will make things better again. In the meantime, I agree with Bob Crane ... moving FULL STEAM AHEAD.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Fred Griffin Florida R...
Tallahassee, FL
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Bob Crane
Stevens Point, WI
1,503,018
The Fed HAS to raise interest rates so they can lower them if the economy tanks again.
To the setup question, we're not to where anyone with a pulse can get a loan, but rental backed securities feel to me like another scam like mortgage backed securities. Same concept, just different type of monthly payments. Same possible problems.
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John Slocum
Vancouver, WA
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Lyn Sims
Schaumburg, IL
6,393,609
Sure, but until it happens we will go full steam ahead.
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Kasey & John Boles
Boise, ID
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Bob Crane
Stevens Point, WI
1,726,096
Could be; time will tell!
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Nina Hollander, Broker
Charlotte, NC
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Bob Crane
Stevens Point, WI
1,712,676
Not unbless they take all the controls off banks and Wall Street then yes, that will cause a bigger bubble, also other bubbles.
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Nina Hollander, Broker
Charlotte, NC
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Bob Crane
Stevens Point, WI
719,838
One that is a good fit for your business plan and that is available to help you and guide you. This is a tough business to get started in and the broker needs to be there for you!
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Sharon & Bruce Walter
Lafayette, IN
3,071,489
4,319,419
HOMEiZ.COM HOMEiZGROUP - I am with Candice A. Donofrio on this.
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Candice A. Donofrio
Fort Mohave, AZ
5,772,575
3,988,007
Some areas are treading on dangerous ground with selling well above appraisal values. This kind of trend will catch up and the market will have to correct.
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Eric Kodner
La Pointe, WI
5,005,659
I'm agreeing with Thomas J. Nelson, Realtor, CRS comment!
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Thomas J. Nelson, REAL...
La Jolla, CA
677,422
Before the Crash, the Fed owned $0 in MBS. Now they maintain an ownership of $1.8T in MBS; plus a boatload of Treasuries. This next Short Sale Season who's gonna be the Note Holder? - The Fed, of course - because they haven't fixed anything so that real investors would want to own those MBS.
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Kasey & John Boles
Boise, ID
864,658
Only time will tell. Wait...isn't real estate cyclical anyways?
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Candice A. Donofrio
Fort Mohave, AZ
1,844,301
225,526
I agree with Thomas J. Nelson, Realtor, CRS. Rates will go up in 2017, if everything is going right. But who knows what's going to happen with Trump in charge? I have a real problem with his picks for Education and HUD. Seems like no experience necessary in this administration.
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Thomas J. Nelson, REAL...
La Jolla, CA
5,104,931
1,076,551
Of course it has - until wages grow with home values, we'll continue to see a rise and fall in home values
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Bob Crane
Stevens Point, WI
4,883,260
1,045,440
I am concerned about housing affordability as well as rising interest rates and lack of inventory
2,224,473
4,936,716
4,800,082
4,434,127
599,274
Every year is the same. We could have nother three years of strong performance, we could hit a wall, we could even go backwards. Nobody knows the future. My recommendation is to always make smart decisions based on what you know now, but also consider what you would do if the market improved or worsened.
711,852
This may be determined by your market. However, with lending practices so much better than they were in 2007, I don't see the scenario today that we had before the recession. In our market, we still have roughly 2 months of inventory and buyer are either living in their property, using it as an investment, or a second home. We do not see home flipping like we did in 2007.
809,258
5,230,148
Interest rates simply HAVE to go back up - and I don't believe we're setting ourselves up for another value decline...the market is ever-changing and we will adapt!
900,258
1,239,901
3,986,258
There are so many programs to help people buy a home who really can't afford to own one.
3,416,038
We are still seeing a very strong market for multi family homes and commercial properties. Values are still rising slightly with a shortage of listings and high amount of buyers in NH
2,781,303
The feds should raise rates but I heard they held off...At some point they will as the market is signaling that it can handle it. Decline worries should come about about from questionable rising tactics. So far, everything has been normal
4,272,548
5,217,381
Interest rates need to rise as do cap rates. Nothing lasts forever, thank goodness!
2,684,109
The Elites who control the Federal Reserve Bank will create a "value decline" when they see an opportunity for their own profit.
2,182,552
1,157,785
Our central bank is continuing to maintain its target for the overnight rate at 0.5% as per its press release dated January 18, 2017. The next scheduled release for announcing its overnight rate target is March 1, 2017.
989,652
I think we're in for a ride, but not necessarily a downward one - time will tell