It's not just a housing revival!!

Mortgage and Lending with Platinum Funding Group, Inc.NMLS-243033 NMLS 4195

These days the media is full of headlines about housing taking the lead in the economic recovery. That's true, but the single minded emphasis on for-sale housing is misleading, when it seems to suggest that not much is happening in other real estate sectors.
That's not true, because the apartment and condominium markets are also improving. Furthermore, the risk appetite among lenders and investors in the commercial sector is increasing with more vigor. What this means is that almost the whole real estate sector is now beginning to contribute to economic growth. No wonder, therefore, that the national construction sector added 48,000 jobs in February with gains evenly split between residential and nonresidential specialty contractors. 
As for landlords, NAHB's Multifamily Production Index -- measuring builder sentiment in the apartment and condominium construction sector – is on the upswing. This index rose 3 points to a level of 54 in 2012's fourth quarter, which is the fourth straight quarter with a reading over 50. A reading over 50 means that a majority of respondents see market conditions improving. The index also differentiates between market-rate rentals, low-rent units, and condominiums. Although measured strength in market-rate rentals dropped four points to 65 points in 2012's final quarter from the third quarter, the index has been above the bullish 60 mark for six consecutive quarters. That's the longest period of strength since 2003, when the survey was established.

Comments (1)

John F Muscarella
Broker/Owner, Venice, FL, Florida's Suncoast

All good signs though it seems corporate earnings or lack of these may result in a correction at some point sooner than later.  Hopefully it will just be a small bump in the road.  Best in 2013.

Mar 25, 2013 06:38 PM