Smoke and Mirrors

“The recent activity of sales in markets which are affordable to first-time buyers, are being driven mainly by foreclosures and short sales.”

The REAL Unemployment Rate

 RE Report
The real unemployment rate released on July 2nd by the Bureau of Labor Statistics is now 16.5%, a full 7 points higher than the officially reported rate.
 The June numbers from the Bureau of Labor Statistics, using the bureau’s expanded “U-6″ rate, show an amazing 16.5% rate of unemployment, not the 9.5% that was being reported.
The real rate includes [...]

The ‘SPIN’ from the NAR continues…

RE Report
The National Association of Realtors released Pending Home Sales data today and their findings reveal a One Tenth of One Percent supposed increase. One tenth!
Now mind you, that in any data set, a standard/typical margin of error is + or – 1% to 2%. So the One Tenth is negligible. 0% and may even [...]

Geographic-Market Study: Route 22/Green Brook, NJ

Of the 107 total properties along Route 22 in Green Brook, there are 24 vacant units. Of those 24 vacancies, 19 are advertised for rent, 2 listed for sale, and 3 are abandoned.

More Abysmal News for NJ’s Economy

RE Report/Analysis
Update I
In long line of New Jersey businesses that have gone liquid or bankrupt, there are now 30 more you can add to the dole.
Here is the list of the 30 franchises that was delivered to the unfortunate New Jersey Chrysler/Jeep Dealers.
Certainly this is not good news for each town and city these dealerships are located [...]

U.S. Commercial Property Index | Q1

RE Report
First quarter commercial market data indicated a continued steep decline in growth and price for all commercial real estate- with the office sector leading the way.
Fourth quarter numbers revealed a significant-12.2% drop, while Q1 2009 stands at -10.5%. An approximate negative 16% change. Apartments, Industrial and Retail properties all declined respectively, leading to the overall [...]

National Foreclosures Hit Record High- Yet Again.

  From Bloomberg:
May 13 — Foreclosure filings in the U.S. rose to a record for the second consecutive month in April as banks increased efforts to seize homes from delinquent borrowers.
A total of 342,038 properties received a default or auction notice or were seized last month, RealtyTrac Inc. of Irvine, California, said today in a [...]

The Cap Rate Flux

 RE Report/Analysis
As the commercial real estate market becomes softer and more susceptible to the deep recession, Cap Rates or Capitalization Rates, are going to become an even greater concern and metric to investors.
Cap rates vary depending on the supply and demand for commercial property, capital credit markets as well as the overall economic climate.
Over the previous [...]

Home Sales: Menza-Menz…

 RE Report/Analysis
U.S. existing home sales fell in March, dropping another 3%, while the median price rose 4.2% from February- although that is before any seasonal adjustment variation. Though prices increased from the month before, the y-o-y decline was 12.4%.
New home sales fell 0.6% last month as well, with y-o-y volume down 30.6%. Any notion that home prices are bottoming [...]

CB Richard Ellis- in Bed with Sen. Feinstein and the Obama Administration

RE Report/Analysis
Tax evading appointee’s, broken campaign promises, irresponsible spending, take over of private industries, and corrupt Senators. This new administration has it all in their first 3 months of stinking up the White House.
The only ‘change’ we at RE see, is the continuation of criminal activity and rampant corruption in DC. And, they are at it [...]