Balancing Act: What is a 'Normal' Market?
(Gaines) 3pp.
The months inventory measure is one way to determine the relative balance of housing supply and demand in a market. As supply increases relative to demand, prices tend to fall. Inventory level is not the only factor affecting prices, so the relationship is not a direct, mathematically precise computation. Rather, it is a general indicator of the direction and potential magnitude of future price changes.
The Ravages of Inflation
(Dotzour) 2pp.
When inflation strikes, consumers look to gold, real estate, foreign assets from countries with stable currencies and inflation-protected U.S. Treasury bonds. But gold is always a high-risk investment. The best bets from this list are quality real estate properties and TIPS.
'As Is'
(Fambrough) 4pp.
Selling residential property 'as is' raises questions because the Texas Supreme Court has never addressed the issue. It has, however, approved the sale of commercial property in this manner. Based on that decision, several lower appellate courts have now approved the "as is" sale of residential property as long as certain requirements are met.
Federal Taxes Reflect Growth
(Anari) 3pp.
Comparing Texas and U.S. tax revenues provides a clearer, more timely picture of how the Texas economy stacks up against the nation's than looking at employment and income data, which are continually revised. The state's total tax revenues grew by 8.6 percent from 2007 to 2008, compared with a growth rate of only 1.9 percent for the nation.
Old School: Lessons from the '80s and '90s
(Hunt) 6pp.
Based on the timeline of the 1980s and 1990s economic downturn and eventual recovery, the current commercial real estate situation may last longer than expected. Part of the problem may be attributed to recurrence of a wide bid-ask spread in the property markets.
Automation Pays
(Klassen) 4pp.
Real estate firms of all sizes should investigate accounts payable automation to reduce costs and improve case management.
Solving America's Housing Crisis
(Dotzour) 2pp.
The problems in the housing market are the result of too much supply and not enough demand. Construction of new homes in over supplied markets should end. Investors should be encouraged to purchase vacant homes for rental purposes. And the government should guarantee Fannie and Freddie mortgage bonds to restore faith in those entities.
Pay Dirt
(Gilliland) 2pp.
Continuing economic uncertainty is prompting some investors to purchase farmland as an investment. Cropland prices and rents have increased steadily since 2004, in part because of rising commodity prices. But the 2008 run-up and subsequent collapse in commodity prices have caused other investors to rethink their strategies.
