Terry McDaniel

Anticipating The Future – Daniel Burrus

http://realagile.com

‘The most terrifying words in the English language are: I’m from the government and I’m here to help.’ – Ronald Reagan

The Power of Community

We can change the world….. have fun…Terry

Naturally, the newspapers print “California Unemployment Rate hits 10.5%.”, but the truth is 89.5% have jobs.  Again jobs are key to housing demand. I like this quote from the article…..”Metropolitan San Francisco, consisting of San Francisco, San Mateo and Marin counties, had a jobless rate of 7.8 percent in February, better than the state or the nation.  This three-county area has been less afflicted by the housing bust and buoyed by a concentration of jobs in tourism, business services, high-tech and other sectors with fewer payroll losses.”  Read rest of the story…. Click Here

When you read something, ask yourself how did the person writing the article evaluate, dissect and align their thoughts….For example, the following portion of the HomeGain’s Blog by Howard Sobel on March 20th, 2009

Howard gets to core of house value change… If you have job growth you have housing demand… Housing demand is a derivative of jobs… more people more demand to house those workers….So read this insightful blog.  I have only capture a portion to illustrate his thought process.

“San Jose as a Leading Indicator San Jose is experiencing a very tough time. The San Jose unemployment rate is now 7.2%, compared to 4.9% a year ago and help wanted ads are down by 35%. If San Francisco has benefittedwith a healthier economy Its hard to believe this isn’t a leading indicator for softer rent rates. Remember… its well paying jobs that led the boom and it is jobs that will herald the decline. San Francisco is not experiencing the price declines that many homes have. However, if you consider that the major employers of the city are restaurants (hurting), the financial district (dead) and technology (weakening) then its time to adjust to new realities. Reading the Curve What Now Markets precede people’s perception of them. In other words, people are still trying for historic rent rates. Waiting is too expensive. Rather than continue to try for historic returns. Its time to lock in cash flow rather than hit a home run, to refocus on reasonable cash flow guaranteed for a least the length of the lease. It’s the best way to manage rental property today and to get safely through this downturn.”

Always ask how does “whatever” effect the demand for space…. All real estate values can be boiled down to the change in demand for space… Enjoy the weekend… Any thoughts….

The Crisis of Credit Visualized – Part 2

This only 1/2 of the story…. More to be added later. Terry