Friday, April 24, 2009 at 06:48PM | William L. Exeter More Good Economic News: Update From The Kiplinger Letter
Little hints and suggestions that we are past the worst of this "Great Recession" keep crawling in from all parts of the United States. We continue to see very slight increases in our business activity on the 1031 exchange front. While our private fiduciary services operation has been mostly flat, stable and uneventful during this economic period, we are even seeing an increase it business there as well.
Words From Kiplinger
I wanted to share with you some comments recently made in the April 17, 2009 edition of The Kinglier Letter (Volume 86, Number 16).
The housing market may feel even worse in coming months, as foreclosures keep rising and home prices continue their downward slide. No doubt the patient is still very ill. But there are signs the fever is breaking and that improvement is at last, at least, imaginable.
Sales are starting to strengthen. Realtors are seeing more traffic, lured in part by the tax credit for first time buyers as well as by low mortgage rates.
Investors are returning to hard-hit areas in Fla. and Southern Calif. as well as to some regions that didn't experience the price bubble and bust.
This time, they're not in for a quick buck...buying and flipping homes to snare fast price hikes.
Instead, they see solid cash flow prospects...rental income high enough to cover all their expenses. It helps that tighter credit is swelling the ranks of potential renters, helping to offset what's likely to be a quarter million fewer new households formed this year, with layoffs and less hiring of college grads forcing more extended families to share living space.
The fact is, the painful bloodletting is starting to rebalance the market.
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