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Rainmaker
946,291
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Wait. Where are you seeing this rise in cap rates?
Cap rates for what property type?
I am just not seeing cap rates anywhere NEAR 2007 levels for any Class A/B property type (most are below 8, multifamily below 7!). Class C in some property types (8s-9s) are still beneath 2007 cap rates (which were in the 11s)
Source: CBRE Cap Rate 1H 2016
Source; MIT Chervachidze/Wheaton 2011

Has the industry set itself up for another disastrous value decline?
Probably, but that's because folks never learn. 3:)

Feb 07, 2017 12:51 PM
Rainmaker
1,358,959
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

No, it has not.

We always knew rates were going up in 2017.

CAP Rates vary from market to market, not all markets would concur with your #'s.

Feb 07, 2017 12:45 PM
Rainmaker
575,926
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Hmmmm, I am believing that our leadership will make decisions that will make things better again.  In the meantime, I agree with Bob Crane ... moving FULL STEAM AHEAD.

Feb 07, 2017 12:10 PM
Rainmaker
1,430,961
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

The Fed HAS to raise interest rates so they can lower them if the economy tanks again.

 

To the setup question, we're not to where anyone with a pulse can get a loan, but rental backed securities feel to me like another scam like mortgage backed securities.  Same concept, just different type of monthly payments.  Same possible problems.

Feb 07, 2017 02:29 PM
Ambassador
5,758,879
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Sure, but until it happens we will go full steam ahead.

Feb 07, 2017 11:40 AM
Rainmaker
1,672,615
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Could be; time will tell!

Feb 07, 2017 11:38 AM
Rainmaker
1,708,245
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Not unbless they take all the controls off banks and Wall Street then yes, that will cause a bigger bubble, also other bubbles.

Feb 07, 2017 11:22 AM
Rainmaker
707,726
Sharon & Bruce Walter
Keller Williams Realty Lafayette, IN - Lafayette, IN
West Lafayette homes for sale

One that is a good fit for your business plan and that is available to help you and guide you.  This is a tough business to get started in and the broker needs to be there for you!

Feb 12, 2017 07:44 AM
Rainmaker
3,070,984
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Diana Dahlberg nailed this one!

Feb 08, 2017 03:59 AM
Ambassador
4,316,215
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

HOMEiZ.COM HOMEiZGROUP - I am with Candice A. Donofrio on this.

Feb 07, 2017 10:43 PM
Rainmaker
5,767,876
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

I agree with  Candice A. Donofrio 

Feb 07, 2017 06:55 PM
Ambassador
3,987,010
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Some areas are treading on dangerous ground with selling well above appraisal values. This kind of trend will catch up and the market will have to correct.

Feb 07, 2017 06:06 PM
Rainmaker
4,391,892
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

I'm agreeing with Thomas J. Nelson, Realtor, CRS comment!

Feb 07, 2017 05:00 PM
Rainmaker
627,708
Alexander- Slocum
Premiere Property Group, LLC - Vancouver Washington - Vancouver, WA
Realty Team- Vancouver WA Real Estate

Before the Crash, the Fed owned $0 in MBS.  Now they maintain an ownership of $1.8T in MBS; plus a boatload of Treasuries.  This next Short Sale Season who's gonna be the Note Holder? - The Fed, of course - because they haven't fixed anything so that real investors would want to own those MBS.

Feb 07, 2017 04:53 PM
Rainmaker
864,358
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

Only time will tell. Wait...isn't real estate cyclical anyways?

Feb 07, 2017 04:38 PM
Rainmaker
1,767,246
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Nope. All you doom & gloomers .....

Feb 07, 2017 04:08 PM
Rainer
225,515
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

I agree with Thomas J. Nelson, Realtor, CRS. Rates will go up in 2017, if everything is going right. But who knows what's going to happen with Trump in charge? I have a real problem with his picks for Education and HUD. Seems like no experience necessary in this administration.

Feb 07, 2017 01:27 PM
Rainmaker
4,496,675
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I doubt it.

Feb 07, 2017 12:58 PM
Ambassador
1,014,958
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Of course it has - until wages grow with home values, we'll continue to see a rise and fall in home values

Feb 07, 2017 11:18 AM
Rainmaker
4,356,086
Richard Weeks
Dallas, TX
REALTOR®, Broker

Looks like you received some great answers.

Feb 14, 2018 07:12 AM
Rainmaker
1,045,215
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

I am concerned about housing affordability as well as rising interest rates and lack of inventory

Feb 04, 2018 07:41 PM
Rainmaker
2,224,167
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I'm with Ryan Huggins on this one. 

Feb 09, 2017 08:24 PM
Rainmaker
4,339,820
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I hope we have checks and balances that this will not happen again.

 

Feb 08, 2017 10:29 AM
Rainmaker
4,799,732
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I don't think we're there yet.

Feb 08, 2017 07:18 AM
Rainmaker
4,433,809
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Hope not.

Feb 08, 2017 04:34 AM
Rainmaker
598,824
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

Every year is the same. We could have nother three years of strong performance, we could hit a wall, we could even go backwards. Nobody knows the future. My recommendation is to always make smart decisions based on what you know now, but also consider what you would do if the market improved or worsened.

Feb 08, 2017 03:40 AM
Rainmaker
609,550
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

This may be determined by your market. However, with lending practices so much better than they were in 2007, I don't see the scenario today that we had before the recession. In our market, we still have roughly 2 months of inventory and buyer are either living in their property, using it as an investment, or a second home. We do not see home flipping like we did in 2007.

Feb 07, 2017 11:17 PM
Rainmaker
808,903
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

What Bob Crane said.  

Feb 07, 2017 10:02 PM
Ambassador
4,555,822
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Interest rates simply HAVE to go back up - and I don't believe we're setting ourselves up for another value decline...the market is ever-changing and we will adapt!

Feb 07, 2017 07:41 PM
Rainmaker
849,792
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Real Estate is historically cyclical.

Feb 07, 2017 07:32 PM
Rainmaker
1,184,200
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

not yet.

Feb 07, 2017 07:08 PM
Rainmaker
3,986,000
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

There are so many programs to help people buy a home who really can't afford to own one.

Feb 07, 2017 05:10 PM
Rainmaker
3,385,252
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

We are still seeing a very strong market for multi family homes and commercial properties. Values are still rising slightly with a shortage of listings and high amount of buyers in NH

Feb 07, 2017 02:39 PM
Rainmaker
2,691,924
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The feds should raise rates but I heard they held off...At some point they will as the market is signaling that it can handle it. Decline worries should come about about from questionable rising tactics. So far, everything has been normal

Feb 07, 2017 01:39 PM
Ambassador
3,987,414
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I honestly think so...

Feb 07, 2017 01:17 PM
Rainmaker
4,572,667
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Interest rates need to rise as do cap rates. Nothing lasts forever, thank goodness!

Feb 07, 2017 01:02 PM
Ambassador
2,609,088
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

    The Elites who control the Federal Reserve Bank will create a "value decline" when they see an opportunity for their own profit.

Feb 07, 2017 12:49 PM
Rainmaker
2,054,999
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Let's hope not

Feb 07, 2017 12:15 PM
Rainmaker
7,041,763
Roy Kelley
Retired - Gaithersburg, MD

No.

Feb 07, 2017 12:03 PM
Rainmaker
1,157,535
FN LN
Toronto, ON

Our central bank is continuing to maintain its target for the overnight rate at 0.5% as per its press release dated January 18, 2017. The next scheduled release for announcing its overnight rate target is March 1, 2017.

Feb 07, 2017 11:56 AM
Rainmaker
945,923
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

I think we're in for a ride, but not necessarily a downward one - time will tell

Feb 07, 2017 11:37 AM