I haven’t wrote anything on here in a while and I don’t have a good reason. Been busy with the kids, buying and selling houses and coaching football this past year and decided to just let the blog rest. I do miss jotting down things I think about so perhaps I’ll write more in 2015. I’d sure like to get rid of that house in central corridor right about now. Dropped some mail Friday so hopefully the phone rings a lot this week. Me and Junior checked out the NFL Experience in downtown Phoenix today(Superbowl is here in Phoenix this year). He enjoyed the HUGE blow up football and looking inside the new GMC trucks more than anything. Didn’t catch the Pro Bowl but from the highlights it looks like it was entertaining! Stock market is still toying with new highs.. Gas is rediculously cheap. Housing seems okay.. Kind of quiet in Phoenix but very much a seller’s market in Portland. Will be interesting to see how far the stock market can inflate and if they can get loans flowing. Market could inflate if they do those 2 things.. Gold and silver have started to rise in the past month. I wonder if we saw the bottom in the mid teens or what will happen. Still mostly lower lows on a longer term chart..
Following the trends of the past 2 years, March saw a significant increase in the number of sales that closed compared to the prior month in Phoenix. Last month saw an increase of 22.1% over February. That followed a 12.6% increase in the prior month. The number remains impressively high in light of the continued shrinking inventory.
For buyers and investors in Phoenix, this means that competition for homes continues to be very high. We are seeing more and more situation where there are double-digit offers on a single home.
This means inventory remaining on the market, and continued competition for value-priced properties. We MUST continue to carefully work TOGETHER to understand the market AND to understand how we can compete with the market demand and other buyers right now.
We have been watching a statistic very carefully here in Phoenix to determine if the increase in average sales prices was just a blip or a trend. From all indications, we can now see a trend, and that we hit the bottom of the market in August. Since then, we have seen a 20.8% increase in the average sales price. March saw an 8.97% increase over the month of February. This is the highest price we have seen in Phoenix since June of 2010! The average sales price increased from $172,603 to $188,088.
New Phoenix home sale listings were up 7%, which is generally normal for March. However, it was still the 4th lowest month in the past 36 for new listings to come on the market.
If you have any questions about real estate investing in Phoenix or Arizona, please send me a quick message.
Written by: Joshua Gamen
Gold hit an all time high of $1,633.80 per ounce on Friday! Driving up the price is the result of central banks buying gold and coincidentally(sarcasm) the decline in value of the dollar. The drama in the white house regarding the debt ceiling has had quite an impact on the price of gold lately, as has the news that the US can’t keep perfect credit by devaluing it’s current debts from printing more money. But what is really key here, is that the central banks(the people who print pieces of paper that people use as money around the world) are buying gold.
Silver has been idling around $40 per ounce this past week or so, and looks to continue it’s descent upwards along with other commodities including oil which is at a price of $95.70 per barrel and approaching $4 per gallon. The increased price in silver, just like gold and oil, is an economic reaction to the depletion of value in the US dollar. This is because value does not leave the planet, it simply transfers between different asset classes. Right now the money is flowing out of the dollar and into gold, silver, oil, real estate, food, etc.
I am holding to my recent prediction of silver hitting $200 per ounce by October 2012. If silver hits $200 per ounce, that would put gold at a price of $8,156 per ounce based on the current ratio of silver to gold at roughly 41 ounces of silver to 1 ounce of gold. Strong projection, but I’d like to get some talk going on about the subject. With Federal Reserve Chairman Ben Bernanke recently telling Congress they are working on doing more of the same thing(creating debt for free, devaluing the currency, buying back treasury bonds, QE3…) along with the possible default on the US debt, a credit rating downgrade of the US, and rising prices in oil and gold, I think it’s a harsh reality we could face. What it would ultimately mean would be very bad for the poor and middle class, inflation..
Debt Ceiling – Credit Downgrade
The politics are what they always are, a battle for power.
The reality is, they’ve argued over the debt ceiling being raised for too long and it has already took effect on the credit rating of the country. The reality is that a credit rating downgrade will be just as catastrophic as a default on the debt. The stocks will tank, the dollar will free fall, and gold will surge.
Tho many me be interested to see who wins the heated debate over the hot topic between the Democrats and the GDP, the truth is as Robert “Rich Dad” Kiyosaki puts it: ” that no matter who wins this battle, the war may already be lost—and the American public will be the casualties.”
Like I said, politics are a battle for power – Here is the fact:
WE HAVE A BIG DET, AND WE CAN’T PAY IT BACK. SO IF WE PILE MORE DEBT ON THAT, WE WON’T BE ABLE TO PAY THAT BACK EITHER. The Credit Rating Agencies know that we can’t pay this debt back, even tho they have took this long to finally admit it. According to the Wall Street Journal:
Moody’s Investors Service, Standard & Poor’s and Fitch Ratings have all warned they might cut the U.S. credit rating. S&P, in particular, has said it could move even if a debt-reduction deal is met and the $14.29 trillion federal debt ceiling is raised.
S&P has cited $4 trillion in debt reduction as a figure that would be appropriate for keeping the triple-A rating. S&P has also said it wants a credible agreement, meaning one that has bipartisan support.
Neither side is close to a $4 trillion figure. And given the wrangling, the chances of strong bipartisan support for any deal seem unlikely, investors said(“Downgrade Threat Looms”).
..Now, the question shifts from what will happen to what am I going to do now that I know what is happening.
The definition of insure is this: “to guaranty against future loss or harm.”
The US dollar is a commodity. Everything going on right now is sending that commodity to the tank, and since it has no intrinsic value as it’s physical body(paper), it will now stop until it reaches zero. Now, you can have your political beliefs on everything and that’s fine, but you wouldn’t buy a house without insurance, and you wouldn’t drive your car without insurance, so why do you hold your money as a piece of paper with no insurance? Gold and silver are insurance to the dollar.
My point is that it’s not about what I want to be money, right? We all have ideas of what we want or think should be money, it’s about what probably is going to be money.
Meanwhile it remains a perfect storm -a good one 🙂 – to invest in real estate! Prices are still low while sales are high. Most important is that interest rates remain at all time lows, making the oppertunity to leverage and cash flow abundant. We’re getting it done with outstanding returns here in Phoenix, AZ. Give me a call if you are interested in doing some investing – 623-252-3234, let’s talk.