Slight Pick-up In 1031 Exchange Volume
We are still seeing signs that we have hit the bottom of the real estate market in terms of transaction volume or activity. The weekly 1031 exchange transaction volume has been slowly increasing (the key word is slowly) in our operation since late February 2008, but at an extremely slow snails pace.
We still think there is 12 to 18 months to go before we have hit the bottom in terms of price or market valuation, but at least the transaction activity has started to pick-up. It has been volatile to say the least and will probably continue to be so for the foreseeable future.
The World According To The Kiplinger Letter
You have probably seen me quoting The Kiplinger Letter before. They are usually pretty dead on when it comes to predicting the economy. There is no media bias there, just the plain facts and simple truth. So, having said that, here is a quote from The Kiplinger Letter dated June 13, 2008:
"There are some glimmers of light in housing as well. Realtors say pending home sales rose in April, though figures are still way below year earlier numbers. Bargain hunters are beginning to enter the markets...especially in the West and Midwest ...the first sign of a turnaround that should have housing sales start to pick up as prices bottom out next year."
We certainly agree with this and it falls in line with what we are seeing and experiencing. The real estate downturn has also cleansed the market with the stronger companies surviving. Those who expected the market cycle were prepared for it and those who did not are not around anymore.
So, what to do? Keep on Keep'n on.....
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