CCIM June 10th Luncheon Speaker Mike Inselmann with MetroStudy

 

Kristen Wiehe CCIM Scholarship Recipient, Mike Inselmann with MetroStudy and Suzanne Page-Pryde with Page-Pryde Properties

According to Mike Inselmann Texas is the best place to be when looking for recovery from the last two years.  Population growth in the top 20 US cities shows Texas with 4 spots including the top two. Population grows with jobs.

A recession is two back to back quarters of negative GNP growth. We are now running three consecutive quarters with positive GNP growth. What's wrong? Well there is no job growth. Job growth is the most important factors in new housing starts. We are up to 2 million jobs lost from 6 million jobs lost. It takes on an average 1 1/2 to 2 jobs for each housing start. At least the trend is not negative.

Foreclosures still loom out there. There is a new stage in the foreclosure arena. Started when values suddenly declined forcing a foreclosure. Then Adjustable rate mortgages kicked in forcing more. The the third wave comes because of job loss. Now a fourth has come into play and that's the Give Back. Homeowner can afford to pay the mortgage but decides that it will be more beneficial to him to walk. It's voluntary and could cause havoc.

Lastly there are no indicators that this process won't repeat itself again in the next 5 to 10 years.

Jim Cockrill with Coldwell Banker United and Beth Young with Grubb& Ellis