Today’s News Synopsis:

The premium price for a McMansion home has declined drastically to 117%, down from 138% four years ago.  Commercial real estate is expected to increase only slightly in the coming year.  Industries that are seeing wages increase the most are the ones that do not pay as much.

In The News:

Wall Street Journal – “Real-Estate Investors Leave Comfort Zones” (8-28-16)

“New York’s pricey and competitive rental residential investment market is pushing local investors to get creative.  Reflecting these market pressures, Treetop Development LLC and its affiliate company are expanding its dual investment strategy targeting affordable- and market-rate apartment buildings.”

Bloomberg – “Lower-Paying Industries Are Seeing the Fastest Wage-Growth in the U.S.” (8-29-16)

“‘Joe six-pack gets a raise,’ proclaim Bank of America Merrill Lynch economists Emanuella Enenajor and Lisa Berlin, commenting on the biggest source of upward pressure on U.S. wages in 2016. The duo found that industries which rank in the bottom 20 percent by pay are seeing incomes rise at a much faster clip than higher-paying sectors.”

PR Newswire – “Commercial Real Estate Expansion Expected to Remain on Slow, Upward Path” (8-29-16)

“Buoyed by a steadily improving labor market and strong demand for multifamily housing, commercial real estate activity should remain on an upward trajectory, with a growing share of it is expected to be in smaller markets, according to the National Association of Realtors quarterly commercial real estate forecast.”

Market Watch – “An eye-opening chart shows up as Yellen snubs the doomsday crowd” (8-29-16)

“In her much anticipated speech at the Federal Reserve Bank of Kansas City Symposium at Jackson Hole, Wyoming, Janet Yellen was wishy-washy, making stocks, bonds, gold and currencies vulnerable.”

Bloomberg – “Fed Is Headed for Shallow Rate Path This Decade, Study Shows” (8-29-16)

“Some at the U.S. central bank may still be too optimistic about how high interest rates can rise in the longer run, based on new Federal Reserve Bank of San Francisco research.”

Inman – “How the real estate industry can change the world – for the better” (8-29-16)

“As we face one of the most divisive and violent time periods in our history, a time where many feel helpless and that their dreams for the future may never be fulfilled, it can be tempting to give way to the pessimism — don’t!”

Market Watch – “No all-day breakfast in real estate as McMansion price premium declines” (8-29-16)

“Like many housing innovations from the early 2000s, McMansions saw their popularity spike and then dive.  But according to Trulia, the fortunes of the newly-built massive houses share another similarity with the overall real estate market: their value depends on location, location, location.”

Nasdaq – “Major ETFs Rally, Led By Real Estate, Utilities And Financials” (8-29-16)

“Major ETFs were trading higher midday Monday, led by the real estate, utilities and financial sectors. Japan ETFs also pushed higher.”

 

Bruce Norris will be speaking at the AOA Million Dollar Tradeshow and Landlording Conference 2016 on Tuesday, September 20.

Bruce Norris will be presenting his newest talk Stay Put, Cash Out, Or Change Seats? with InvestClub for Women on Wednesday, September 21.

Bruce Norris will be presenting Stay Put, Cash Out, Or Change Seats? with InvestClub for Women and Robert Hall & Associates on September 28.

Bruce Norris will be presenting Cashing In On a Boom: Investing in Quadrant 4 at the Back Bay Conference Center on Saturday, October 8.

Bruce Norris of The Norris Group will be presenting the 9th annual I Survived Real Estate 2016 on Friday, October 21.

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