HOUSING INVENTORY INCREASE EXPECTED

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When Does a Market Bottom?

June 25, 2009

Analysis by: GLG Expert Contributor

The determination of when a market bottoms is based upon the resurgence of a "free selling market" when sellers are not forced to sell and buyers are not buying because of subsidies, tax bonuses and all sorts of market stimulus. Reaching a decision that buyers are now in the market buying forced sales, short sales and foreclosures in record numbers does not signal a return to a free selling market until all of the short sales, foreclosures and government inducements to buy are not causing the sales. Much of this activity is fueled by speculators who will disappear from the buying market and resurface when the market prices rise then they become sellers which is a signal that a resurgent market is present but not the only signal.

Orlando Metro Market Has Bottomed- A Tale of Two Markets

June 25, 2009

Analysis by: GLG Expert Contributor

The Orlando (Central Florida) market is comprised of two submarkets.  N. Orlando and Seminole County S. Orlando, Polk County and Osceola County.  N. Orlando and Seminole County are seeing robust demand among consumer bargain hunters as well as investors.  One local firm indicated results were up 40% with bargain inventory being snapped up within days (even bidding wars).  In this market, condo sales are being driven by (more) realistic prices (esp. in conversions).  This is driving investor interest as strong cash flow and the prospect of strong appreciation in two-to-three years is compelling. Homes are also being snapped up at bargain prices as those with jobs and credit take advantage of the pre-boom pricing that made Orlando an affordable market. S. Orlando et al is still falling as residents are lower income hospitality workers have no jobs/credit and new projects compete with new projects and lots of current and potential inventory.  Recovery is years away.

Steve BottfeldPrincipalMarketing Solutions

LAS VEGAS: RESIDENTIAL HAS FOUND THE BOTTOM

June 23, 2009

  May housing data strongly suggests that Las Vegas will experience a bottom to the residential recession in the 2nd quarter of this year.