Capgemini and Merrill Lynch Global Wealth Management have released their 13th annual World Wealth Report, an analysis of the macroeconomic factors that drive wealth creation, and a study of the trends that affect High Net Worth Individuals (HNWIs).
Below are the main points extracted from the 14-page report.
Today’s real estate rates are more reasonable than they’ve been in years, empowering people to invest in valuable properties at incredibly low prices. Though some buyers are searching for deals on existing homes, visionaries are taking this opportunity to purchase lots and begin building their dream homes. Even if a tight budget inhibits the immediate completion of a new home, now is a prime time to implement the first steps of longer-term building plans.
Finding a piece of property is an exciting process with many components to consider. Like all real estate, location is key. Proximity to schools, shopping, and major highways make the land more desirable and thus more valuable. Other important factors to consider include placement of trees, overall aesthetic value, neighborhood utilities, slope, soil quality, and zoning.
Consult experts for advice on how to navigate these complex issues. A real estate agent will be able to answer your questions and assist you in selecting the best land, architects, builders, and other resources.
On this week’s Red Zone Podcast (produced by Texas A&M’s RECON), Dr. Mark Dotzour discusses which way real estate is headed in 2010.
Dotzour predicts that “things are gonna be busy” for agents in 2010, as people will continue to look for “shelter” and places to raise their growing families. He sees that the two clouds most affecting real estate are the shaky job market (which he thinks will improve in the first few months of 2010) and the broken mortgage system (which he hopes will be resolved shortly).
Dotzour comments that “mortgage rates are at outrageously low levels right now,” which is like “a once in a lifetime gift.” Having been involved in real estate since 1969, he has never seen rates dip so low. When the Federal Reserve stops pumping money into the mortgage system, however, the rates will start creeping up again. Dotzour advises that for those comfortable in their jobs or considering retirement, now is an ideal time to house hunt.
Dr. Mark Dotzour is the Chief Economist and Director of Research at Texas A&M’s Real Estate Center. To hear more of his real estate advice, visit the RECON website and listen to this week’s Red Zone podcast.
U.S. home prices climb for the third straight month, though the nation’s annual rates are still declining. Dallas home prices rose 0.2% last month, and dipped only 1.2% from August 2009. To see how Dallas compares overall (quite well!) click this interactive map, courtesy of the Wall Street Journal.
The S&P/Case-Shiller home price indexes were released this morning, showing that home prices rose for the fourth month in a row and suffered only a small annual drop.
After climbing 1.6% in July, home prices took another 1.2% step forward in August. Though prices were down 11.3% from August 2008, analysts had predicted an 11.9% drop and were thus somewhat relieved. “Broadly speaking, the rate of annual decline in home price values continues to improve,” said David Blitzer, chairman of at Standard & Poor’s index committee. The annual rate of decline of the 10-City and 20-City Composites has improved for seven consecutive months.
Dallas home prices experienced a 0.2% increase from July to August, and a 1.2% decline from August 2008.
Some economists predict that home prices will soon take another dip, especially if the tax credit ends in late November. “Once the tax credit expires, demand will take a hit, home sales will drop and house prices will resume their downward course, brought down by the weight of rising foreclosures and rising unemployment rates,” writes Patrick Newport, an economist at IHS Global Insight.. “Our view is that home prices will drop another 5%….and will bottom in 2010.”
Though the future is still unknown, today’s report indicates a small step in the right direction.
Existing home-sales rose 9.4 percent in September, reaching their highest level in almost two years and providing another indicator that the housing market remains on the road to recovery. Though home prices declined, economist Lawerence Yun predicts that the drop – a smaller dip than in previous months – reinforces hopes that home prices have begun to stabilize.
A shrinking supply of homes on the market (now a 7.8 month inventory) is also positive news. According to Realtor.org,
Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.
Click below to watch Peter Coy, Economic Editor of BusinessWeek, discuss the latest numbers.
When the world recognized Dallas as the place of JFK’s assassination, the legendary Cowboys quarterback Roger Staubach suddenly stepped onto the stage. Staubach helped the Boys achieve recurring success, attracting raving fans from across the country and helping Dallas form a fresh reputation. A key player for Dallas back then, Staubach remains committed to the city today, fully engaged in the field of real estate.
The November issue of TexasMonthly features a “Best of Texas: Dallas” insert, which – in addition to highlighting the area’s top galleries, restaurants, shops, and services – includes a noteworthy profile on Staubach and his perspective of Big D. To read the full article (and get great tips on Dallas), log in online or pick up a copy at your neighborhood grocery.
Aptly called a “magician’s box of tricks” by the New York Times, the new Wyly Theatre offers Dallas much more than an eye-catching piece of contemporary architecture. Nicolai Ouroussoff of the Times describes,
The proscenium wall, like the scenery, can be raised and lowered electronically. Stage floors can drop away and reappear. Several tiers of balconies can be mechanically rearranged in any number of configurations, surrounding the stage on three sides one night, drawing together in a more traditional arrangement the next.
The purpose of all this engineering is not just to facilitate quick set changes; it also allows the director to manipulate and fine-tune the relationship between actors and audience. If the machinery is used as intended, patrons will find that the emotional distance between them and the actors will change in unexpected ways with each performance.
Cleverly constructed to both fascinate and fluster, the impressive structure is wily indeed.
Not yet convinced? Watch this video:
Brought to you by the Dallas Observer.
BusinessWeek recently highlighted several Texas cities – specifically Dallas and Houston – as being amongst the U.S. metros “least touched by the recession.” Though the Lone Star unemployment rate hit 8.2% in September (peaking above 8% for the first time in 22 years), Texas still ranks high overall. And when compared to the national unemployment rate of 9.8% or Nevada’s 13.3%, an 8.2% average doesn’t seem so shocking.
The magazine also ranked the “Forty Strongest U.S. Metro Economies,” giving five Texas cities spots in the top ten: San Antonio (#1), Austin (#2), Dallas (#5), Houston (#9), and El Paso (#10). Pretty impressive!
How has Texas managed to maintain its footing in the midst of such a shaky situation? An affordable cost of living and low wage rates have drawn both individuals and corporations to Texas metros, and its economy has been further bolstered by strong oil and gas industries. Though no region has been immune to the recession, these factors have helped Texas remain remarkably strong. And according to Terry Clower, an economist at the UNT, “Texas is unlikely to face a prolonged downturn.”
As a modern day homebuyer, you have search engines and smartphones at your beck and call. ’Vaguely interested in a house? You can type in the address and instantly access specs, photos, maps, and more. With these facts and figures literally at your fingertips, what’s the point of paying commission for an agent?
Real estate agents embody irreplaceable value. Any do-it-yourself homebuyer will testify that due to the overwhelming amount of information available, the “Lone Ranger” shopping style takes tremendous time and energy. And in today’s market, it is especially important to have a knowledgeable professional on your team to find and negotiate the very best deals.
Click below to watch Shell Stegall of Briggs Freeman Real Estate as she shares the immense benefits of teaming a talented real estate professional with today’s technology.
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