While there can be no iron clad guide to real estate investing in America these days, one general rule seems to be sharply in focus: the further east you travel, the worse the housing market gets. While Seattle is still posting record gains and parts of California are still on an upswing, once you get to the “flyover” states, things begin to get downright depressing. Chicago is a prime example of that. While the real estate bubble might have already burst in a few eastern cities, the predicted downturn in Chicago’s real estate market is hitting as we speak. The recent first quarter numbers tell the grizzly tale.
Maybe the most shocking number is that the asking price and the sales price for new single family homes and condos in the Chicagoland area are down almost ten percent over last month. Sales prices are down from $281,000 to $253,000 in one month, while asking prices mirror the trend, dropping from $289,000 to $261,000. Even the price per square foot in the Chicago area is down sharply, from $134 to $120, a drop of over 10 percent from March to April of this year. The amount of time a single family home and a condo spends on the market, on the other hand, is up from 131 days to 138, an increase of just over five percent.
The one bright spot, and the best sign that this slump may be shorter rather than longer is that the total number of transactions is up ten percent in the month of April from March of 2007. This shows that while prices may be dropping, the good citizens of the Windy city are aware that bargains are now around every corner and that buying is becoming more fashionable.
A recent Chicago Tribune article dated May 9 isn’t so optimistic. Experts called the current state of Chicago’s real estate investing market an out and out “recession:” a word only used in the direst of circumstances. The chief economist of the National Association of Realtors, who has always been an industry cheerleader for obvious reasons, was less than optimistic about the immediate future of Chicago’s real estate market.
But the great thing about real estate and real estate investing is that the whole thing works in a cycle. Chicago is too beautiful, too desirable a place to live and has too strong an infrastructure and economy to be in the real estate doldrums for too long. The question on everyone’s mind is, how much longer do we have to put up with this?
Well, even the most optimistic predictions are saying that the United States, as a whole, could actually see negative home values for the first time since the great depression. So, as a general rule, unless things change rapidly during the next few months, the only sound investments when it comes to real estate are going to be found west of the Rockies. But things will eventually turn around and if these predictions come true, and overall home prices actually drop, you can bet that at the first sign of recovery, the market is not only going to recover but it is going to rebound stronger than ever.
And it’s not just Chicago that’s feeling the bite. The entire Midwestern United States has been underperforming the rest of the country when it comes to real estate prices. According to Realtor.org, home sales are down over 8 percent from this time last year, but the Midwest is showing a steeper drop of almost 10 percent from the same time last year.
Predicting the future of housing in the Midwest as a whole and in Chicago specifically isn’t an easy job, but you can be sure that the current dip is temporary and that once the available bargains become too luscious to resist, the market will be back with a vengeance.
Warmly,
Mary Wozny
Wednesday, July 25, 2007
Tuesday, July 24, 2007
Reality Check!
For all my readers who avidly follow my blog, I want to share with you an email I sent out to my clients last evening in an effort to clarify what's been happening at MillionaireRiches.com. I'm copying it here in its entirety and hope this clarifies and answers some of the questions you've been sending me.
This is a difficult email to write, but one that I believe in my soul I have to. I simply have no other choice. Please bear with me, it's a bit long.
Over this past 6 months, many of you have written to me expressing your concerns with the emails you've received from Brad, believing that I had some part in this.
I want to clarify the reality of this for you.
My son Brad walked away from and left MillionaireRiches.com in February. I was surprised at the time, shocked and betrayed as only a mother and business partner can be. Hindsight shows me that there were hints along the way which I hadn't quite put together, based on what was happening in our personal lives and what he was doing in respect to MillionaireRiches.com.
I'm sure you can understand how messy and divisive a divorce can be on a family, we are certainly a prime example of this! Brad has made his choice to partner with his father and has essentially walked away from both my daughter and I. It is heartbreaking and so sad, but everyone chooses their own paths in life.
It has been tough, no question about it, but that's ok. I'm dealing with it. I've grown even stronger than before and have learned to let things go. I've learned many more lessons and will incorporate some of them in my second book. It just goes to show that we are never too old to learn, not only from our mistakes, but from life!
However, this being said, unbeknownst to me, prior to Brad's leaving, he had transferred our client list to his own company and has been marketing to this list, meaning you, very frequently. Some of you are quite understandably perturbed by this excessive marketing and sales hype.
Unfortunately I can't stop him from sending these emails. You do have the option and right to remove yourself from his mailings if you so choose by clicking the option at the bottom of each email to unsubscribe from his list. This is entirely your choice.
I've been recovering from the all the things that have taken place and been quiet about all this. During the past 6 weeks though, my gut, my intuition, the part of me that never steers me wrong, has been telling me that the time has come to clear this up and let you know some of what has really taken place. I owe it to you. You don't need to know all the "gory details", but you do deserve to understand what is going on.
I do not ever want to steer you wrong. I will not give you hype, I will not misrepresent nor overstate, and I will NOT email you day after day. What I can't do though, is change what someone else does. For your sake I wish I could.
I want to thank you all for your support and most especially, for reading this and allowing me to get this off my chest. I simply felt I had to let you know in light of all that has been happening and all the questions and concerns that have been asked of me.
I wish you all continued joy, peace, happiness and prosperity in your lives.
Warmest Regards,
Mary Wozny
This is a difficult email to write, but one that I believe in my soul I have to. I simply have no other choice. Please bear with me, it's a bit long.
Over this past 6 months, many of you have written to me expressing your concerns with the emails you've received from Brad, believing that I had some part in this.
I want to clarify the reality of this for you.
My son Brad walked away from and left MillionaireRiches.com in February. I was surprised at the time, shocked and betrayed as only a mother and business partner can be. Hindsight shows me that there were hints along the way which I hadn't quite put together, based on what was happening in our personal lives and what he was doing in respect to MillionaireRiches.com.
I'm sure you can understand how messy and divisive a divorce can be on a family, we are certainly a prime example of this! Brad has made his choice to partner with his father and has essentially walked away from both my daughter and I. It is heartbreaking and so sad, but everyone chooses their own paths in life.
It has been tough, no question about it, but that's ok. I'm dealing with it. I've grown even stronger than before and have learned to let things go. I've learned many more lessons and will incorporate some of them in my second book. It just goes to show that we are never too old to learn, not only from our mistakes, but from life!
However, this being said, unbeknownst to me, prior to Brad's leaving, he had transferred our client list to his own company and has been marketing to this list, meaning you, very frequently. Some of you are quite understandably perturbed by this excessive marketing and sales hype.
Unfortunately I can't stop him from sending these emails. You do have the option and right to remove yourself from his mailings if you so choose by clicking the option at the bottom of each email to unsubscribe from his list. This is entirely your choice.
I've been recovering from the all the things that have taken place and been quiet about all this. During the past 6 weeks though, my gut, my intuition, the part of me that never steers me wrong, has been telling me that the time has come to clear this up and let you know some of what has really taken place. I owe it to you. You don't need to know all the "gory details", but you do deserve to understand what is going on.
I do not ever want to steer you wrong. I will not give you hype, I will not misrepresent nor overstate, and I will NOT email you day after day. What I can't do though, is change what someone else does. For your sake I wish I could.
I want to thank you all for your support and most especially, for reading this and allowing me to get this off my chest. I simply felt I had to let you know in light of all that has been happening and all the questions and concerns that have been asked of me.
I wish you all continued joy, peace, happiness and prosperity in your lives.
Warmest Regards,
Mary Wozny
Sunday, July 22, 2007
Real Estate in Miami, Florida
Perhaps no state in the union has been ripped and pulled in more different ways during the recent housing slump than Florida. You have parts of the state, like Palm Bay (near Daytona) and Sarasota which are showing double digit drops in home prices over the last calendar year, and you also have places like up-and-comer Ocala and state capital Tallahassee showing 5 percent or better improvements during the same time period. In the middle of all this is beautiful Miami.
According to CNN, Miami has experienced a modest growth in the median price of home sales over the last year, up 2 percent to $385,000. Is the worst over in Miami or is this city of palm trees and beaches just a little late on the nationwide trend?
It really depends on who you ask. A pair of recent polls tend to contradict the question of if Miami real estate is worth investing in. A recent study that appeared in Forbes Magazine in early May listed the most overpriced real estate cities in the country. Miami finished second. Using a price to earnings ratio, the editors figured that Miami was due for a bubble burst and that investors should avoid this area like the plague.
But not everyone is in agreement. A CNBC poll posted on their site on May 11th, listed the top 5, and bottom 5 cities for positive real estate appreciation, an obvious concern for those looking to invest their hard earned cash in hopes for a future profit. Miami ranked 4th in the nation behind Seattle, Portland, OR and Charlotte. Looking further into this study, it points to the condo surge in Miami over the past few years and how they have helped to keep the market steady while single family residents have been sinking. But in a market as promising and as profitable as Miami, how much longer can you really expect a slump to continue?
It is safe to say that as long as there are harsh northern winters, potholes and wind chills, there will always be a migration to South Florida. No area in the country has expanded so rapidly over such a short period of time as Florida has, and the recent housing slump can’t be seen as anything more than a temporary self-correction on the market.
This goes for the rest of the state, as well, even in areas like Sarasota and Palm Bay which have, historically, been retirement communities. There is simply not that much tropical beach in the United States, and while prices may fluctuate over time, to think that the long term trends in Miami and throughout Florida is headed anywhere but up is foolish.
The question remains, however, how much longer will the slump last? Home prices have been dropping across the state for the last three years, but as recent numbers have shown, Miami has stabilized and the chances of prices falling any further are unlikely. There is simply too much demand from those sick of living in dirty, old and crowded northern cities to keep the Miami housing market stagnant for long.
Things appear to be turning around as we speak, and the late and harsh winter of 2006-2007 is sure to drive many south looking for relief. Experts believe that much of the current Miami real estate market is overvalued, but when you have an almost limitless demand, how overvalued can it be?
Of course, not everyone can afford a penthouse on South Beach, but with the numerous suburban communities that dot the Florida coast, it is possible to find affordable housing especially if you are use to paying New York or Boston prices.
Warmly,
Mary Wozny
According to CNN, Miami has experienced a modest growth in the median price of home sales over the last year, up 2 percent to $385,000. Is the worst over in Miami or is this city of palm trees and beaches just a little late on the nationwide trend?
It really depends on who you ask. A pair of recent polls tend to contradict the question of if Miami real estate is worth investing in. A recent study that appeared in Forbes Magazine in early May listed the most overpriced real estate cities in the country. Miami finished second. Using a price to earnings ratio, the editors figured that Miami was due for a bubble burst and that investors should avoid this area like the plague.
But not everyone is in agreement. A CNBC poll posted on their site on May 11th, listed the top 5, and bottom 5 cities for positive real estate appreciation, an obvious concern for those looking to invest their hard earned cash in hopes for a future profit. Miami ranked 4th in the nation behind Seattle, Portland, OR and Charlotte. Looking further into this study, it points to the condo surge in Miami over the past few years and how they have helped to keep the market steady while single family residents have been sinking. But in a market as promising and as profitable as Miami, how much longer can you really expect a slump to continue?
It is safe to say that as long as there are harsh northern winters, potholes and wind chills, there will always be a migration to South Florida. No area in the country has expanded so rapidly over such a short period of time as Florida has, and the recent housing slump can’t be seen as anything more than a temporary self-correction on the market.
This goes for the rest of the state, as well, even in areas like Sarasota and Palm Bay which have, historically, been retirement communities. There is simply not that much tropical beach in the United States, and while prices may fluctuate over time, to think that the long term trends in Miami and throughout Florida is headed anywhere but up is foolish.
The question remains, however, how much longer will the slump last? Home prices have been dropping across the state for the last three years, but as recent numbers have shown, Miami has stabilized and the chances of prices falling any further are unlikely. There is simply too much demand from those sick of living in dirty, old and crowded northern cities to keep the Miami housing market stagnant for long.
Things appear to be turning around as we speak, and the late and harsh winter of 2006-2007 is sure to drive many south looking for relief. Experts believe that much of the current Miami real estate market is overvalued, but when you have an almost limitless demand, how overvalued can it be?
Of course, not everyone can afford a penthouse on South Beach, but with the numerous suburban communities that dot the Florida coast, it is possible to find affordable housing especially if you are use to paying New York or Boston prices.
Warmly,
Mary Wozny
Wednesday, July 11, 2007
Real Estate Investing in Edmonton, Alberta
The city of Edmonton, while not as closely associated with the recent oil boom as neighboring Calgary, is currently flush with investment opportunity. The entire province of Alberta is one giant sound investment because of the unparalleled economic growth thanks to the oil sands and their seemingly limitless cash flow.
Edmonton is the farthest north of the major cities in Alberta, which puts it closer to the actual excavation sites of the oil sands located in the northern part of the province. What this means is that the money, and those looking to spend that money, hit Edmonton first. That explains why the housing and real estate market in Edmonton has been doing record business.
According to a report issued by the Edmonton Real Estate Board, 2007 is already breaking records. Sales in every category are up over 2006, and some of the values being seen are shocking even the most optimistic projections. The average selling price for a condo in Greater Edmonton is up a whopping 60 percent over the same time last year, to an average of $261,000. The median selling price for a single family dwelling is up almost as much, 55.8 percent, to just a shade under $400,000. And sales of residential properties in Edmonton is up over 20 percent in April 2007 over April of 2006.
If you have cash to invest, it is almost impossible to NOT make money in real estate in Edmonton, but with every boom, there is a worry that a bust is soon to follow. Edmonton expects over 400,000 new residents to the Greater Edmonton area over the next 25 years, a rate that would outpace almost every other city in North America.
The prospect of instant riches in Northern Alberta is a huge draw for anyone looking to earn it. Northern Albertan cities like Fort McMurray are suffering from worker shortages because the oil companies want to move the oil-soaked sands so quickly that a young, motivated worker in a town like this can be earning six figures in literally months. That almost instant wealth is going to get spent on something and a home in the greater Edmonton area, the closest major city to the oil sands, is the prime target.
If you need any more convincing that the Edmonton economy is in a permanent climb, or at least a climb for the next few decades until the oil sands have been removed, the mayor expects a jump of almost five percent in the cities gross domestic product to close to $45 billion dollars, one of the biggest jumps, percentage wise, in Canadian history. It is too late to get in on the ground floor of this incredible investment opportunity, but the sky is definitely the limit with Edmonton, and Alberta in general, and serious cash can still be made.
If you’re wondering where new projects can be built in a city that is growing so fast, that is one of the best parts about both Calgary and Edmonton. Alberta is a land of wide open spaces, a beautiful combination of mountains and plains. To the north of Edmonton lies 20,000 undeveloped acres that the mayor envisions to be a whole new section to the city within a few years time made up of homes, apartments, condos as well as commercial and industrial space. It is still very possible to get in early with investment dollars on this new section of this growing city, but you must act fast.
Warmly,
Mary Wozny
Edmonton is the farthest north of the major cities in Alberta, which puts it closer to the actual excavation sites of the oil sands located in the northern part of the province. What this means is that the money, and those looking to spend that money, hit Edmonton first. That explains why the housing and real estate market in Edmonton has been doing record business.
According to a report issued by the Edmonton Real Estate Board, 2007 is already breaking records. Sales in every category are up over 2006, and some of the values being seen are shocking even the most optimistic projections. The average selling price for a condo in Greater Edmonton is up a whopping 60 percent over the same time last year, to an average of $261,000. The median selling price for a single family dwelling is up almost as much, 55.8 percent, to just a shade under $400,000. And sales of residential properties in Edmonton is up over 20 percent in April 2007 over April of 2006.
If you have cash to invest, it is almost impossible to NOT make money in real estate in Edmonton, but with every boom, there is a worry that a bust is soon to follow. Edmonton expects over 400,000 new residents to the Greater Edmonton area over the next 25 years, a rate that would outpace almost every other city in North America.
The prospect of instant riches in Northern Alberta is a huge draw for anyone looking to earn it. Northern Albertan cities like Fort McMurray are suffering from worker shortages because the oil companies want to move the oil-soaked sands so quickly that a young, motivated worker in a town like this can be earning six figures in literally months. That almost instant wealth is going to get spent on something and a home in the greater Edmonton area, the closest major city to the oil sands, is the prime target.
If you need any more convincing that the Edmonton economy is in a permanent climb, or at least a climb for the next few decades until the oil sands have been removed, the mayor expects a jump of almost five percent in the cities gross domestic product to close to $45 billion dollars, one of the biggest jumps, percentage wise, in Canadian history. It is too late to get in on the ground floor of this incredible investment opportunity, but the sky is definitely the limit with Edmonton, and Alberta in general, and serious cash can still be made.
If you’re wondering where new projects can be built in a city that is growing so fast, that is one of the best parts about both Calgary and Edmonton. Alberta is a land of wide open spaces, a beautiful combination of mountains and plains. To the north of Edmonton lies 20,000 undeveloped acres that the mayor envisions to be a whole new section to the city within a few years time made up of homes, apartments, condos as well as commercial and industrial space. It is still very possible to get in early with investment dollars on this new section of this growing city, but you must act fast.
Warmly,
Mary Wozny
Sunday, July 8, 2007
To Invest or Not to Invest in Montreal, Quebec??!!!
While it is never good to make blanket statements about housing markets from coast to coast, with the release of the first quarter 2007 numbers, it is safe to say that all of Canada right now is showing signs of growth. That growth even extends to markets like Montreal that just two years ago were showing signs of recession.
It is impossible to compare the modest but encouraging growth in the Montreal housing market in the first part of 2007 with the incredible growth seen in other parts of Canada like Alberta and British Columbia. Even in the best of days, Quebec’s housing market was much steadier and far less prone to rapid increases or decreases. But that doesn’t mean it isn’t a good investment opportunity however, it just means that growth, as well as loss, is much more even. Imagine real estate investing without the roller coaster ride.
The current upturn in the Montreal real estate market can be directly attributed to the improved economy in the last calendar year. Experts believe that improved consumer confidence drove up average home prices in Montreal and throughout southern Quebec and that while the trend isn’t rocket-powered, it is expected to continue well into the second quarter of the year.
The best news coming out of the first quarter in Montreal was on condo sales. They were the best performing part of the market, but again, like all good news coming out of Montreal, it is tempered by the fact that the best selling condos in the city so far this year tended to be lower priced ones, with higher priced condos staying on the market for a significant amount of time.
As with most of Quebec, experts predicted at the beginning of the year a real estate slow down or even a small recession, but the first quarter numbers have proven them wrong, at least so far. In the always important category of units sold, the first quarter performed extremely well. But analysts are hesitant to predict that the rest of the year will proceed as smoothly.
In fact, it is hard to find a consensus on what the Quebec housing market is going to do for the rest of 2007 since so many experts were sure the year would start out on a sour note. Now that the market has taken a turn for the better, the Greater Montreal Real Estate Board has boldly predicted record years for condo sales and overall resales. Condo resales were up 14 percent over last year, with the average price for a single family home climbing a healthy 5 percent over the same period.
Even commercial space in downtown Montreal performed better than expected during the final two quarters of 2006. Vacancy rates in downtown Montreal plummeted from over 8 and a half percent during the middle of 2006, to just above 8 percent at the end of the year. Again, as with the housing markets, these numbers fooled most experts who were expecting a more stagnant market.
So, what does the future hold for Canada’s most culture-rich city? Well, based on the predictions of experts, no one really knows. Most prospectors have adjusted their early-year predictions of gloom to reflect the new reality that appears to be in place now in Montreal, and while no one is really predicting a record year for real estate investment, the market has taken on a friendlier glow this summer. If you watch the market carefully and make the right choices, Montreal can be an attractive real estate market to invest in throughout the 2007 fiscal year.
Warmly,
Mary Wozny
It is impossible to compare the modest but encouraging growth in the Montreal housing market in the first part of 2007 with the incredible growth seen in other parts of Canada like Alberta and British Columbia. Even in the best of days, Quebec’s housing market was much steadier and far less prone to rapid increases or decreases. But that doesn’t mean it isn’t a good investment opportunity however, it just means that growth, as well as loss, is much more even. Imagine real estate investing without the roller coaster ride.
The current upturn in the Montreal real estate market can be directly attributed to the improved economy in the last calendar year. Experts believe that improved consumer confidence drove up average home prices in Montreal and throughout southern Quebec and that while the trend isn’t rocket-powered, it is expected to continue well into the second quarter of the year.
The best news coming out of the first quarter in Montreal was on condo sales. They were the best performing part of the market, but again, like all good news coming out of Montreal, it is tempered by the fact that the best selling condos in the city so far this year tended to be lower priced ones, with higher priced condos staying on the market for a significant amount of time.
As with most of Quebec, experts predicted at the beginning of the year a real estate slow down or even a small recession, but the first quarter numbers have proven them wrong, at least so far. In the always important category of units sold, the first quarter performed extremely well. But analysts are hesitant to predict that the rest of the year will proceed as smoothly.
In fact, it is hard to find a consensus on what the Quebec housing market is going to do for the rest of 2007 since so many experts were sure the year would start out on a sour note. Now that the market has taken a turn for the better, the Greater Montreal Real Estate Board has boldly predicted record years for condo sales and overall resales. Condo resales were up 14 percent over last year, with the average price for a single family home climbing a healthy 5 percent over the same period.
Even commercial space in downtown Montreal performed better than expected during the final two quarters of 2006. Vacancy rates in downtown Montreal plummeted from over 8 and a half percent during the middle of 2006, to just above 8 percent at the end of the year. Again, as with the housing markets, these numbers fooled most experts who were expecting a more stagnant market.
So, what does the future hold for Canada’s most culture-rich city? Well, based on the predictions of experts, no one really knows. Most prospectors have adjusted their early-year predictions of gloom to reflect the new reality that appears to be in place now in Montreal, and while no one is really predicting a record year for real estate investment, the market has taken on a friendlier glow this summer. If you watch the market carefully and make the right choices, Montreal can be an attractive real estate market to invest in throughout the 2007 fiscal year.
Warmly,
Mary Wozny
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