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
Friday, June 29, 2007
Should I Invest in New York Real Estate?
There might not be a more dichotomous real estate world than what you find in New York State. To say that the world of real estate and investing is different in midtown Manhattan than it is in the rest of New York is to possibly make the biggest understatement humanly possible. There are truly two different worlds when it comes to real estate, and while there are almost no single family homes in Manhattan, condos, co-ops and apartments dominate due to space restrictions, the 11 million New York residents that live outside of the metro area prefer to call the traditional single family home home. So, how are these two areas reacting to the current nationwide real estate slump? It really depends on which numbers you look at.
In a CNN article dated May 15, 2007, housing prices from the first quarter of 2007 are analyzed and compared to the same quarter in 2006. The city of New York, including Long Island and Northern New Jersey hung tough, sporting a modest 1 percent rise in home prices. But things are far from smooth throughout the state. Looking at the White Plains section of New York, prices were actually far healthier, with a rise of over 2 percent in home prices. A tad further south in Edison, New Jersey, the outlook was a bit more grim, with a decrease in home prices of almost 3 and a half percent compared to last year. The best performing area was actually Newark, with a rise of four and half percent. Upstate in Buffalo and the Niagara Falls area, prices fell over three percent. But in Albany and the Binghamton area, prices are robust, with increases of 6 percent and 9 percent, respectively. So, what does all this mean?
It means that New York is one of the most complicated patchworks of real estate investing in the country. There seems to be a real migration out of the city to areas upstate. Even towns like Syracuse and Rochester, known more for their snowfall then their real estate prices, showed modest increases in value that much of the eastern United States couldn’t match. But don’t think the city was suffering, either.
According to a May 2007 article published on the New York real estate site The Real Deal, the average price for a Manhattan apartment was up a healthy 4.5 percent during the first quarter of 2007 to $835,000. Of course, that is taking in all five Burroughs of the city, if you were to just count Manhattan, that number would be significantly higher. According to the article, the price of an average Manhattan apartment could buy you EIGHT homes located upstate.
So, the bottom line question here is, is New York worth investing in right now when the rest of the east coast isn’t doing very well or should you stick to the Pacific Northwest, California and Canada?
The answer is New York might be the healthiest investment out there if you want to keep your money on the eastern side of the Mississippi. Growth is still sluggish compared to five years ago, but it does appear to be moving in the right direction and most cities in the US right now can’t claim that.
The economic monster that drives New York City, and the rest of the state, is simply too big to let a recession in real estate last more than a few months. The 22 million+ residents won’t allow real bargains to sit around very long, which makes New York one of the safest places to invest anywhere. That use to just be a sign of the city itself, but it appears that the safety net has been strung from upstate, as well.
Happy Investing!
Mary Wozny
In a CNN article dated May 15, 2007, housing prices from the first quarter of 2007 are analyzed and compared to the same quarter in 2006. The city of New York, including Long Island and Northern New Jersey hung tough, sporting a modest 1 percent rise in home prices. But things are far from smooth throughout the state. Looking at the White Plains section of New York, prices were actually far healthier, with a rise of over 2 percent in home prices. A tad further south in Edison, New Jersey, the outlook was a bit more grim, with a decrease in home prices of almost 3 and a half percent compared to last year. The best performing area was actually Newark, with a rise of four and half percent. Upstate in Buffalo and the Niagara Falls area, prices fell over three percent. But in Albany and the Binghamton area, prices are robust, with increases of 6 percent and 9 percent, respectively. So, what does all this mean?
It means that New York is one of the most complicated patchworks of real estate investing in the country. There seems to be a real migration out of the city to areas upstate. Even towns like Syracuse and Rochester, known more for their snowfall then their real estate prices, showed modest increases in value that much of the eastern United States couldn’t match. But don’t think the city was suffering, either.
According to a May 2007 article published on the New York real estate site The Real Deal, the average price for a Manhattan apartment was up a healthy 4.5 percent during the first quarter of 2007 to $835,000. Of course, that is taking in all five Burroughs of the city, if you were to just count Manhattan, that number would be significantly higher. According to the article, the price of an average Manhattan apartment could buy you EIGHT homes located upstate.
So, the bottom line question here is, is New York worth investing in right now when the rest of the east coast isn’t doing very well or should you stick to the Pacific Northwest, California and Canada?
The answer is New York might be the healthiest investment out there if you want to keep your money on the eastern side of the Mississippi. Growth is still sluggish compared to five years ago, but it does appear to be moving in the right direction and most cities in the US right now can’t claim that.
The economic monster that drives New York City, and the rest of the state, is simply too big to let a recession in real estate last more than a few months. The 22 million+ residents won’t allow real bargains to sit around very long, which makes New York one of the safest places to invest anywhere. That use to just be a sign of the city itself, but it appears that the safety net has been strung from upstate, as well.
Happy Investing!
Mary Wozny
Wednesday, June 27, 2007
Real Estate Investing in Ottawa, Ontario, Canada
When housing investors point to different cities in Canada, they each have a reason why investing there is a practical move. Toronto is Canada’s financial capital, Vancouver is one of the most beautiful cities in North America and has the upcoming Olympics, Calgary and Edmonton are flush in oil money and Montreal has culture, sophistication and one of the highest living satisfaction poll numbers anywhere. Left out of this discussion, in many cases, is Canada’s political capital, Ottawa. What is so redeeming about investing in this, one of Canada’s smallest cities? The answer is price and potential!
According to just-released numbers, Ottawa is the cheapest city of its size to live in in all of Canada. Only Quebec City ranked higher, but Ottawa was number one as far as major Canadian cities went. And even though housing prices are up sharply in Ottawa over the last five years, they still pale in comparison when held up against Toronto or Vancouver. What does this mean for the average real estate investor? It means that there is still a huge opportunity to invest in this beautiful city before prices rise further and the secret of this wonderful place gets out.
So, why Ottawa? Looking on the map, Ottawa is snugly tucked between both Montreal and Toronto, which has made it a popular choice for those needing to do business in both cities on a frequent basis. The home of Canada’s government boasts a metro population of just over a million people, and it is growing rapidly as more and more people realize the appeal of this “flyover” city. 2006 was truly a record year for home sales in Ottawa. It was one of several cities in Canada, including Montreal, Calgary and Edmonton, to break home sales records in 2006. The question is, of course, will this trend continue into 2007 and beyond.
Ottawa’s housing prices have been on the rise since the late 1990’s. During that time, the average home price was just around $125,000-$130,000. But a meteoric rise has gripped the city since then, with housing prices jumping to approximately $225,000 by January of 2004, but it is the rise since that point that has many people skittish about the future of home prices and investment in Ottawa. In the first half of 2005 alone, housing prices jumped from approximately $230,000 to $265,000 in only six months. To say that this growth is unprecedented in a city like Ottawa would be an understatement.
Now, experts are trying to figure out if this jump was merely a self correction that put Ottawa back on pace with the rest of Canada (and remember, even with this growth, Ottawa is still the cheapest metropolitan city in Canada) or has rising prices signals a genuine housing “bubble” in the nation’s capital.
Home sales in Ottawa did not meet the national average, but they were still up much higher in 2006 then most experts believed. Sales rose in Ottawa almost 14 percent over 2005’s blistering pace, while home sales nationally climbed a tad under 18 percent. Critics of the bubble theory point to the fact that interest rates in Ottawa have remained low and unaffected by a perceived artificial housing bubble. The longer that this housing rise continues, the more and more it looks like is a natural market correction that got Ottawa on the same page with the rest of Canada than a bubble that will burst any time soon.
Predictions for the rest of 2007 are, as usual, all across the board for Canada’s capital. But since there has been very little in the way of concrete evidence of a bubble collapse anytime soon, the smart money is on continued growth in Ottawa for the foreseeable future, which makes this city a fantastic place to invest now and into the future.
Happy Investing!
Mary Wozny
According to just-released numbers, Ottawa is the cheapest city of its size to live in in all of Canada. Only Quebec City ranked higher, but Ottawa was number one as far as major Canadian cities went. And even though housing prices are up sharply in Ottawa over the last five years, they still pale in comparison when held up against Toronto or Vancouver. What does this mean for the average real estate investor? It means that there is still a huge opportunity to invest in this beautiful city before prices rise further and the secret of this wonderful place gets out.
So, why Ottawa? Looking on the map, Ottawa is snugly tucked between both Montreal and Toronto, which has made it a popular choice for those needing to do business in both cities on a frequent basis. The home of Canada’s government boasts a metro population of just over a million people, and it is growing rapidly as more and more people realize the appeal of this “flyover” city. 2006 was truly a record year for home sales in Ottawa. It was one of several cities in Canada, including Montreal, Calgary and Edmonton, to break home sales records in 2006. The question is, of course, will this trend continue into 2007 and beyond.
Ottawa’s housing prices have been on the rise since the late 1990’s. During that time, the average home price was just around $125,000-$130,000. But a meteoric rise has gripped the city since then, with housing prices jumping to approximately $225,000 by January of 2004, but it is the rise since that point that has many people skittish about the future of home prices and investment in Ottawa. In the first half of 2005 alone, housing prices jumped from approximately $230,000 to $265,000 in only six months. To say that this growth is unprecedented in a city like Ottawa would be an understatement.
Now, experts are trying to figure out if this jump was merely a self correction that put Ottawa back on pace with the rest of Canada (and remember, even with this growth, Ottawa is still the cheapest metropolitan city in Canada) or has rising prices signals a genuine housing “bubble” in the nation’s capital.
Home sales in Ottawa did not meet the national average, but they were still up much higher in 2006 then most experts believed. Sales rose in Ottawa almost 14 percent over 2005’s blistering pace, while home sales nationally climbed a tad under 18 percent. Critics of the bubble theory point to the fact that interest rates in Ottawa have remained low and unaffected by a perceived artificial housing bubble. The longer that this housing rise continues, the more and more it looks like is a natural market correction that got Ottawa on the same page with the rest of Canada than a bubble that will burst any time soon.
Predictions for the rest of 2007 are, as usual, all across the board for Canada’s capital. But since there has been very little in the way of concrete evidence of a bubble collapse anytime soon, the smart money is on continued growth in Ottawa for the foreseeable future, which makes this city a fantastic place to invest now and into the future.
Happy Investing!
Mary Wozny
Tuesday, June 5, 2007
Perhaps no housing and real estate market in North America is as healthy or contains as much potential as the city of Vancouver, British Columbia, Canada. For decades, the public at large viewed Vancouver as nothing more than a squalid mill town beseeched by rain 300 days of the year. But Expo ’86 changed all that forever. The city did an incredible job of cleaning up many industrial sites and the 10 solid days of nothing but beautiful sunshine demonstrated to the world that Vancouver was truly an unpolished diamond with incredible ocean and mountain views ready to be invested in.
Since 1986, real estate prices have been rising, and they haven’t really stopped. For those familiar with the Vancouver housing markets, it has become a bit of a running joke trying to figure out where the ceiling is for investment here. The short answer is that there might not be a ceiling at all, at least for another 5-10 years.
Vancouver was picked as the host for the 2010 Winter Olympics, and real estate investors are watching this date very closely. Much like the massive clean up and infrastructure improvements spawned the first major real estate boom in Vancouver in 1986, many experts believe that the exact same thing is going to happen with the 2010 games, but on a much larger scale. Combine this with poll after poll showing the quality of living in Vancouver is consistently in the top three in the world, and the fact that there are still real estate bargains to be had here when you compare it to other world class cities like San Francisco and New York, and you have one of the hottest real estate investment markets anywhere in the world.
And recent polls of current Vancouver residents bear this out. A March 2007 poll by Royal Bank of Canada shows that a higher percentage of BC residents, 11 percent compared to the nationwide average of 9 percent, consider themselves ‘very likely” to buy a home within the next year. Not only does this demonstrate that BC is definitely the best place in Canada to buy a home, but also that the 4 million plus population of Canada’s western-most province see the potential value in BC real estate, too.
For those that are scared off by the skyrocketing price of real estate in Vancouver (compared to Canadian standards), the same poll showed that an astonishing 93 percent of those polled consider owning a home in BC to be a good or very good investment. So while it may take the average BC resident a little extra while to afford the home of their dreams, they are dedicated to the idea of owning their own home; which is music to the ears of potential investors in the greater Vancouver area.
So, what about the two years until the Olympics come to town? No one wants to invest in a property only to see the value remain stagnant until some future event. A 2006 article in the Saskatoon Star-Phoenix says that while the Vancouver housing boom is extraordinary by Canadian standards and while all booms do eventually end, that the most likely outcome of the current surge in the Vancouver housing market isn’t a bust or a collapse, but a slow leveling off of prices, also known as a “soft landing.” Which leads to the question: when? Many experts believed the housing market in BC would begin to slow in 2006, then it got put off to 2007. But one look at current downtown Vancouver and the construction that is taking place to get the city ready for the two week PR campaign known as the Olympics, and there is no sign anywhere that the housing market here is headed for decline.
The most optimistic perspectives on the Vancouver housing market is that the current surge will continue through the Olympics in 2010 and, thanks to the games, it will receive a renewed burst of energy that could carry it through 2015, or later. With this much potential, it is easy to see why Vancouver is the place to be for the next decade, plus.
Prosperously Yours,
Mary Wozny
Since 1986, real estate prices have been rising, and they haven’t really stopped. For those familiar with the Vancouver housing markets, it has become a bit of a running joke trying to figure out where the ceiling is for investment here. The short answer is that there might not be a ceiling at all, at least for another 5-10 years.
Vancouver was picked as the host for the 2010 Winter Olympics, and real estate investors are watching this date very closely. Much like the massive clean up and infrastructure improvements spawned the first major real estate boom in Vancouver in 1986, many experts believe that the exact same thing is going to happen with the 2010 games, but on a much larger scale. Combine this with poll after poll showing the quality of living in Vancouver is consistently in the top three in the world, and the fact that there are still real estate bargains to be had here when you compare it to other world class cities like San Francisco and New York, and you have one of the hottest real estate investment markets anywhere in the world.
And recent polls of current Vancouver residents bear this out. A March 2007 poll by Royal Bank of Canada shows that a higher percentage of BC residents, 11 percent compared to the nationwide average of 9 percent, consider themselves ‘very likely” to buy a home within the next year. Not only does this demonstrate that BC is definitely the best place in Canada to buy a home, but also that the 4 million plus population of Canada’s western-most province see the potential value in BC real estate, too.
For those that are scared off by the skyrocketing price of real estate in Vancouver (compared to Canadian standards), the same poll showed that an astonishing 93 percent of those polled consider owning a home in BC to be a good or very good investment. So while it may take the average BC resident a little extra while to afford the home of their dreams, they are dedicated to the idea of owning their own home; which is music to the ears of potential investors in the greater Vancouver area.
So, what about the two years until the Olympics come to town? No one wants to invest in a property only to see the value remain stagnant until some future event. A 2006 article in the Saskatoon Star-Phoenix says that while the Vancouver housing boom is extraordinary by Canadian standards and while all booms do eventually end, that the most likely outcome of the current surge in the Vancouver housing market isn’t a bust or a collapse, but a slow leveling off of prices, also known as a “soft landing.” Which leads to the question: when? Many experts believed the housing market in BC would begin to slow in 2006, then it got put off to 2007. But one look at current downtown Vancouver and the construction that is taking place to get the city ready for the two week PR campaign known as the Olympics, and there is no sign anywhere that the housing market here is headed for decline.
The most optimistic perspectives on the Vancouver housing market is that the current surge will continue through the Olympics in 2010 and, thanks to the games, it will receive a renewed burst of energy that could carry it through 2015, or later. With this much potential, it is easy to see why Vancouver is the place to be for the next decade, plus.
Prosperously Yours,
Mary Wozny
Friday, June 1, 2007
Real Estate Market in Canada's Beautiful Toronto, Ontario
For those looking to immerse themselves in the business and the bustle of the world’s most natural resource-rich country on earth need not look any farther than Toronto. To say that Toronto is the focal point of Canada is to state the obvious, much to the chagrin of residents of both Montreal and Vancouver.
If you are serious about getting things done and being where the action in, Toronto is the place to be, and it is this exact attitude that has carried the Toronto housing market in recent years. While the boom in housing here isn’t quite on par with other Canadian booms in Calgary, Edmonton and Vancouver, Toronto has been holding its own with investors over the last ten years, but as is the case with investing, it is the future that everyone wants to know about.
According to recent reports, however, the city of Toronto is in good economic hands well into the future. In a press release by CIBC, one of Canada’s largest banks, projections of Toronto’s real estate future are rosy, even two decades from now, but the driving force behind this sustained real estate growth isn’t wealthy investors or Canadians picking up stakes and moving to the big city, but immigrants.
Benjamin Tal, a senior economist for CIBC, predicts that thanks to recent legislation that eases immigration to a country that had been losing population in recent decades, the influx of people looking to buy homes will be rising into the foreseeable future. This, of course, is music to the ears of any potential investors who are looking at either small time investing through home-flipping or wealthy investors who might want to take an old apartment complex and turn it into revenue generating condos. Even if you are looking to build fresh, according to Tal, the market will be there to support you.
Looking at the history of Toronto’s housing market, the years 1986-1990 were truly a golden age as the average home price jumped from just over $100,000 to $275,000 in just four years time. Since then, a “smile” has formed, with an initial drop during the early 1990’s, followed by a slow and steady climb back up ever since. The recent rise in housing prices, which started around 1996, has been much more gradual then the sharp rise of the late 1980’s.
For years, optimists in the Toronto housing markets have argued that thanks to this more gradual rise in prices, combined with increased population in the greater Toronto area and the recent influx of immigrants, that it is wrong to call the current Toronto housing situation a “bubble,” but it is more of a permanent rise that has occurred.
More credence is given to this theory when you compare the rise in housing prices with the growth of Canada’s gross domestic product over the same time period. While the 1986 housing price leap seriously out-gained the GDP of the time, the ensuing “burst” of that bubble corrected things. But the current rise since 1996 has been almost in lockstep with the healthy Canadian GDP.
While it is impossible to point to this one statistic as a “smoking gun,” most investors don’t need any further proof that the housing market in Toronto is stable, healthy and ready to grow further thanks to the growing roll of Toronto as a world city and as the financial centre for a country that is becoming more and more relevant on the world stage every year thanks to an almost inextinguishable supply of natural resources that will make Canada the place to be for investors for decades to come.
Happy Investing!
Mary Wozny
If you are serious about getting things done and being where the action in, Toronto is the place to be, and it is this exact attitude that has carried the Toronto housing market in recent years. While the boom in housing here isn’t quite on par with other Canadian booms in Calgary, Edmonton and Vancouver, Toronto has been holding its own with investors over the last ten years, but as is the case with investing, it is the future that everyone wants to know about.
According to recent reports, however, the city of Toronto is in good economic hands well into the future. In a press release by CIBC, one of Canada’s largest banks, projections of Toronto’s real estate future are rosy, even two decades from now, but the driving force behind this sustained real estate growth isn’t wealthy investors or Canadians picking up stakes and moving to the big city, but immigrants.
Benjamin Tal, a senior economist for CIBC, predicts that thanks to recent legislation that eases immigration to a country that had been losing population in recent decades, the influx of people looking to buy homes will be rising into the foreseeable future. This, of course, is music to the ears of any potential investors who are looking at either small time investing through home-flipping or wealthy investors who might want to take an old apartment complex and turn it into revenue generating condos. Even if you are looking to build fresh, according to Tal, the market will be there to support you.
Looking at the history of Toronto’s housing market, the years 1986-1990 were truly a golden age as the average home price jumped from just over $100,000 to $275,000 in just four years time. Since then, a “smile” has formed, with an initial drop during the early 1990’s, followed by a slow and steady climb back up ever since. The recent rise in housing prices, which started around 1996, has been much more gradual then the sharp rise of the late 1980’s.
For years, optimists in the Toronto housing markets have argued that thanks to this more gradual rise in prices, combined with increased population in the greater Toronto area and the recent influx of immigrants, that it is wrong to call the current Toronto housing situation a “bubble,” but it is more of a permanent rise that has occurred.
More credence is given to this theory when you compare the rise in housing prices with the growth of Canada’s gross domestic product over the same time period. While the 1986 housing price leap seriously out-gained the GDP of the time, the ensuing “burst” of that bubble corrected things. But the current rise since 1996 has been almost in lockstep with the healthy Canadian GDP.
While it is impossible to point to this one statistic as a “smoking gun,” most investors don’t need any further proof that the housing market in Toronto is stable, healthy and ready to grow further thanks to the growing roll of Toronto as a world city and as the financial centre for a country that is becoming more and more relevant on the world stage every year thanks to an almost inextinguishable supply of natural resources that will make Canada the place to be for investors for decades to come.
Happy Investing!
Mary Wozny
Thursday, May 31, 2007
Yes - You Can Get There!
With each act, your confidence grows. Take the first step and you'll gain the confidence to take the next step.
The more you do, the more you'll be able to do.
Begin the journey, and you'll set in motion a positive momentum that can surely carry you through.
Effort feeds upon itself.
Even though you start small, you can soon go very far.
Though you may not yet have what it takes to finish, you always have what it takes to begin.
And from the most modest initial effort, magnificent results can surely and eventually flow.
Whether the goal seems close at hand or infinitely far away, the way to reach it is the same.
Take the first step, set the momentum of your action in motion, and grow along with it until you are there.
Be willing to take the first step, then follow where each step leads.
And even the most ambitious goal is well within your reach.
To achieving all your wishes, dreams and goals!
Mary Wozny
The more you do, the more you'll be able to do.
Begin the journey, and you'll set in motion a positive momentum that can surely carry you through.
Effort feeds upon itself.
Even though you start small, you can soon go very far.
Though you may not yet have what it takes to finish, you always have what it takes to begin.
And from the most modest initial effort, magnificent results can surely and eventually flow.
Whether the goal seems close at hand or infinitely far away, the way to reach it is the same.
Take the first step, set the momentum of your action in motion, and grow along with it until you are there.
Be willing to take the first step, then follow where each step leads.
And even the most ambitious goal is well within your reach.
To achieving all your wishes, dreams and goals!
Mary Wozny
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