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Posted by Michael Gier, Managing Partner, Nationwide Property Investments, LLC

We've been saying that the Dallas/Ft. Worth area is a great investing market. Below is an article that we just found that talks about the Dallas market.

From the Dallas Business Journal Friday February 8, 2008

With news of the Federal Reserve rate cut, anxieties about a declining housing market and a possible recession are spreading across the country. The good news for Dallasites is that the Dallas housing market is the strongest of any major city in the United States.

A recent PMI Group study reported that the risk of U.S. housing price declines remained low in many areas of the South, Midwest and Northwest. Among the 50 largest metropolitan statistical areas, Texas cities were the lowest and most stable in risk outlook during 2007....Click HERE for a PDF of the rest of the article.

By Michael Gier, Managing Partner - Nationwide Property Investments, LLC

On the CNBC television show, "Squawk On The Street" reporter Diana Olick stated that ALL REAL ESTATE IS LOCAL. Some markets are going down but other markets are going up. Diana Olick gave examples of price increases in some areas of 19%, 18%, 14.8%, and on and on. It's the same thing we've been saying for a while. We all hear the press talk doom and gloom about the real estate market and yet there are many areas that are great places to buy right now. Some investors are waiting to buy out of fear because of what they hear in the press, when in reality they should be buying now.

For example, we have duplexes available in Ft. Worth, TX for only $150,000 with $15k in equity that cash flow $445/mo. with 90% financing. Even with 100% financing it cash flows $355/mo.! Plus were negotiating with the builder to pay all your closing costs. This is a deal no investor should pass on!!! Click HERE to open a PDF document about this deal or go to our WEBSITE for more details.

Diana Olick went on to say that Nationally, on average, home prices have fallen 5.8% from the 4th quarter of 2006 to the 4th quarter of 2007. BUT that homes had seen so much appreciation the many years before that homeowners still have a tremendous amount of gain compared to the little loss that has happened.

For those who have seen property values in their homes drop, they haven't actually lost anything unless they sell. Now is not the time to sell. If they hold on until values go back up and then continue to appreciate they'll do quite well. You only lose right now if you have to sell.

The reason we all hear from the news that the real estate market is in such bad shape is because lenders gave loans to people who shouldn't have received them and gave loans that they should have known would go in to foreclosure when the interest rates adjusted. I blame the lenders. As bright as they're suppose to be they sure didn't prove it in this case.

Although a lot of loans are going bad, real estate is still an incredible investment. What did real estate cost 20 years ago compared to today? How about 20 years before that? Over the years real estate has had its ups and downs but ultimately it always goes up. So the question is, when do you buy? When real estate is very expensive or when real estate is very low. Obviously you buy when it it low. So it amazes me that more people aren't buying now while real estate is on sale, just like the duplex mentioned above or the many other deals available on our WEBSITE. Then when the market comes back around, AS IT WILL, that is the time to sell. 

We encourage each and every one of our investors to act now in order to take advantage of the current market condition and the great deals we have arranged through are due diligence and dedication to you.

We are here to help you create wealth through real estate. Feel free to CONTACT US anytime as to how we can help you achieve your goals.

Posted by Michael Gier, Managing Partner, Nationwide Property Investments, LLC

Below is a great article I just found online.

November 8, 2007 - While the latest S&P/Case-Shiller home price statistics for 20 of the nation’s largest metro markets showed a 4.4 percent year-over-year decline, a closer examination of the data reveals that on average, these same markets appreciated in value by more than 50 percent over the past five years.

“It’s important to keep things in perspective,” said Brian Catalde, president of the National Association of Home Builders (NAHB) and a home builder from El Segundo, Calif. “The current housing price correction is most pronounced in the once super-heated markets in California, Nevada, Florida and Arizona. In most other markets, price declines have been pretty modest.”

For example, in Chicago, home prices declined 1.3 percent between August 2006 and August 2007, while posting a 34.2 percent gain for the five-year period between August 2002 and August 2007.

Among the 20 markets surveyed by S&P/Case-Shiller, which represent more than 40 percent of the U.S. population, four posted home price appreciation rates of more than 80 percent over the past five years while 11 registered gains of more than 45 percent.

Home values in Los Angeles fell 5.7 percent in the last year -- but even with this loss prices in L.A. are up 88.9 percent since 2002. In Miami, home prices dropped 7.8 percent between August 2006 and August 2007 while showing a price appreciation of 89.2 percent during the past five years.

The same pattern holds true in Phoenix and Las Vegas, which each posted yearly declines of 8 percent and 7.6 percent, respectively. However, home values surged 80.2 percent in Phoenix during the past five years and 83.2 percent in Las Vegas.

While housing is a cyclical business, experience shows that over time, home values will stabilize and then move upward with the next recovery, said Catalde.

“To argue that home values will continue to decline and never recover, somebody has to make a convincing case that it will cost less to build a new home five years from now than it does today – and that’s just not going to happen,” said Catalde. “Despite today’s housing slowdown, the cost of land, labor and materials required to build new homes continues to go up.”

Furthermore, Catalde noted that the rapid appreciation rates in 2003-2005 were clearly unsustainable over the long-term, and that housing typically increases in value slightly above the overall inflation rate.