Let's keep it short and sweet. While this article will expand to show more and more correlated and convincing data, I have, over the years observed that luxury real estate markets follow stocks fairly closely. It is better to be generally aware than to not have any information at all.
Think about the days you have watched CNBC and seen a story about some whale investor buying a penthouse. Remember the go go days when the investment bankers were buying all the apartments in midtown Manhattan? Those days are back; or at least they were back for a time.
No one should pretend to know the price direction of any asset class. Over the long term, we do know the trends, but people respond in the short term to all things. Read my article where I discuss my concepts of investing, my general background and my thoughts of how most people react. The chart below shows an index of 30a pricing from February 2014 to June of 2015. It shows the Dow Jones over that same period and it shows the Dow Jones for two more months. Where pricing goes is not a certainty, but at times when the Stock Market is not working in investor's favor, there might be a relationship to the prices of real estate especially in luxury markets.
Well, you are hearing the headlines and so is everyone else. The market is not awesome this year. The concerns are growing. How does the stock market track real estate? My casual observations, and according to how I think people will generally behave, are that Listings will rise while Sales will begin to fall a bit. Inventory will rise to a degree and Days on Market will go up. Why? Sellers will want higher than current market prices and buyers will be affected by the "wealth decline" of the stock market.
I expect to see a larger number of price reductions in the MLS vs new listings and I expect to see that GAP get larger as the stock market continues to be a bit "iffy" in some people's view.
But what does all this matter? One can either afford to be here or one cannot. One is either here for the lifestyle desire of the area or one is here speculating. If you are speculating on Real Estate on 30a then I am not your best choice of an agent. If you are trying to create value for you and your family for years to come, then I am. I can show you how in any market to get the most value for your money.
At times like this for those that can think it through, general contracting your own home along 30a represents the best possible value.
LEGAL STUFF: This article does not represent investment advice or recommend that the reader take any action. This article represents editorial opinion and observation. You should not take any action in the stock market or in the real estate market based on this article. Nor should you engage in investment actions in stocks or real estate without consulting your tax adviser and other investment professionals.
Think about the days you have watched CNBC and seen a story about some whale investor buying a penthouse. Remember the go go days when the investment bankers were buying all the apartments in midtown Manhattan? Those days are back; or at least they were back for a time.
No one should pretend to know the price direction of any asset class. Over the long term, we do know the trends, but people respond in the short term to all things. Read my article where I discuss my concepts of investing, my general background and my thoughts of how most people react. The chart below shows an index of 30a pricing from February 2014 to June of 2015. It shows the Dow Jones over that same period and it shows the Dow Jones for two more months. Where pricing goes is not a certainty, but at times when the Stock Market is not working in investor's favor, there might be a relationship to the prices of real estate especially in luxury markets.
Well, you are hearing the headlines and so is everyone else. The market is not awesome this year. The concerns are growing. How does the stock market track real estate? My casual observations, and according to how I think people will generally behave, are that Listings will rise while Sales will begin to fall a bit. Inventory will rise to a degree and Days on Market will go up. Why? Sellers will want higher than current market prices and buyers will be affected by the "wealth decline" of the stock market.
I expect to see a larger number of price reductions in the MLS vs new listings and I expect to see that GAP get larger as the stock market continues to be a bit "iffy" in some people's view.
But what does all this matter? One can either afford to be here or one cannot. One is either here for the lifestyle desire of the area or one is here speculating. If you are speculating on Real Estate on 30a then I am not your best choice of an agent. If you are trying to create value for you and your family for years to come, then I am. I can show you how in any market to get the most value for your money.
At times like this for those that can think it through, general contracting your own home along 30a represents the best possible value.
LEGAL STUFF: This article does not represent investment advice or recommend that the reader take any action. This article represents editorial opinion and observation. You should not take any action in the stock market or in the real estate market based on this article. Nor should you engage in investment actions in stocks or real estate without consulting your tax adviser and other investment professionals.
No comments:
Post a Comment