Rod's Radio Show Notes
October 24th 2012
Go to: www.rodnolespropertymanagement.com and click on radio notes and sign up to have them emailed each week. If you know of someone looking for rental space, apartments, homes, retail, office or industrial send them to www.rodnolespropertymanagement.
You can participate in the show by calling 318-442-8255 (talk) between 8:05 and 8:55 on Wednesday morning. Do not attempt to call Saturday this is our encore performance (fancy way to say taped).
I Was in Las Vegas Earlier Part of Last Week:
National Meeting for Commercial Realtors around the world CCIM. Highlight for me was panel of three economist and brief recap of their comments are as follows:
“I don’t think we’ll see another recession,” said Mark G. Dotzour, Chief Economist and Director of Research at Texas A&M University at yesterday’s CCIM Live Economic panel luncheon. “We have too much pent up demand.”
Dotzour had the most optimistic outlook of the three economists on the panel. He cited such factors as the uptick in U.S. household net worth, exploding Internet sales, and the decline of household debt service payments as indications of an economic recovery.
Fellow panelist Mark Vitner, managing director and senior economist with Wells Fargo, was less optimistic. “U.S. fiscal policy is mathematically unsound and unsustainable,” he said, explaining that, while we probably won’t go over the fiscal cliff, significant “fiscal drag” is certain to plague the U.S. economy in 2013. He cited the expiration of reduced Social Security taxes, new taxes linked to the new healthcare law, and the impending end of federal funding for unemployment benefits as contributing factors.
Suzanne Mulvee, Senior Real Estate Economist with Property and Portfolio Research offered a perspective on how the major commercial real estate property sectors are faring amid these economic circumstances. “The good news is that things are moving,” she said, citing falling vacancy rates in many markets. She explained that the multifamily sector will continue to be bolstered by Generation Y, but added that it might not be the best option for some investors. The office market, on the other hand, “has volatility going for it,” Mulvee said, noting an uptick in demand and a strong upside in rents. She also explained that a dearth of retail construction in the next three years will mean less retail square footage per capita and, thus, better quality retail space.
Five Louisiana candidates passed the final exam in Vegas. Here is the list, I wish one of our drive by reporters could reach one of these new CCIM and have them call into the show 318-442-8255
Other Speakers Included:
Mayor of Las Vegas Carolyn Goodman
James Murren CEO of MGM and development Manager for City Center
People Not Property:
First attachment is 1970 story about Fred Rosenfeld’s efforts in bringing professional basketball to Louisiana. Go to www.Rodnolespropertymanagement.com to see this article. Click on Radio Show Notes and open October 19th 2012 then scroll to the bottom.
Tip for the Week:
Third party web sites just fall short when compared to local MLS. A recent study was completed for Latter & Blum companies but following comments could apply to most of our locally owned companies. National Study
Local Real Estate Websites Offer the Most Complete
Accurate Info about Homes for Sale
The WAV Group recently published a report that found local Real Estate company websites gave consumers the most complete, accurate and timely information about homes for sale. The study concluded that local Real Estate websites displayed 100% of listed homes compared to about 80% for the national portals, Trulia and Zillow. The report went on to say that local sites show newly listed homes for sale seven to nine days earlier than the national portals and that local sites almost never show homes listed as active that have already sold while 36% of listings on the national portals are no longer for sale.
Email from Rick Haase President Latter & Blum:
”As we consider whether to give our valuable listing content to various real estate advertising web portals, and if so which ones, it becomes more and more important that we stay informed about this changing landscape. The recently completed WAV Group study is enlightening and it speaks well of the investments we are making to ensure your listings are marketed to the public with the highest possible accuracy and completeness.
It turns out that many of these large third party real estate “portals” are incomplete, out of date, and very inaccurate. This places our websites (Agent & Company sites) in the enviable position of being more valid to buyer needs, more informative and therefore more trustworthy. Additionally, our websites all but eliminate your license law non-compliance risk. The liabilities associated with false and misleading listings advertising, which Agents/Brokers are incurring around the country because of these inaccurate sites, are real and costly. You can look forward to our continued guidance and support in this area.”
President Latter & Blum
Every Deal has a Tale / Tail:
England Authority Deals:
Daniel & Robin Bordelon (84 Dottie Lane, Boyce, LA 71409) to The England Economic and Industrial Development District - Lot 14, Dottie Land Extended, $80,500.00
WSJ article 10-18-2012 Headlines Read
“Home Builder Surges as Confidence Grows”
1.Residential construction running at its highest level in four years
2.Seasonally adjusted annual rate of 872,000 units
3.Up 15% from August
4.Up 34.8% from September 2011
5.July 2008 is last time market has seen construction at this level
6.National Association of Home Builders estimates each-home built generates 3 full time jobs
7.New building permits for future construction up 11.6% from previous month indicates annual starts of 894,000
8. Single Family homes make up 69% of residential starts that number is up 43% compared to September 2011
9.Lowest number of starts was 478,000 in April 2009
10.Historical number is 1.5 million per year to keep up with household formation
Reasons for the Jump
1.Consumers feel like home prices could begin to rise and know interest rates are low
2.Inventory of previously owned homes is down and foreclosed inventory is extremely low down 10.2% from last year
1.V&V building 24 additional lots at Bogauge
2.Antoon Builders purchase land and lots from John Rodth will connect 3 streets to Versailles adding 15 lots
3.Past 60 days Tennyson Oaks has sold 12 lots only 10 remain in inventory, enough land for only 10 more lots
4.Lake District has sold 5 lots in past 30 days
5.Few more builders are rolling out new spec homes
6.Lending is still very cautious.
Emails from Listeners:
Rickey Cruz just leased 4,300sf of space (Old Stines location) to Red Door Interiors based out of Baton Rouge. You can visit their website at http://www.reddoorinteriorsinc.com/ Expected grand opening will be early November.
Copeland’s of New Orleans Celebrates its
1 year Anniversary in Alexandria, LA
Thursday October 25th from 6:30pm to 9:30pm
Complementary glasses of champagne (to those of age)
Ladies night featuring the Gary Cathey Band
Happy Hour for all guests
$5 select appetizers and $5 martinis
ALSO OCTOBER 25th ONLY Copland’s will donate 20% of your bill to
CENLA Hope House if you mention this organization when receiving your bill
For more information visit: www.copelandsofneworleans.com
Louisiana College (1140 College Dr., Pineville, LA 71360) to Tudor, Inc. (P O Box 13135, Alex., LA 71315) - LA College Cottingham Hall Roof, $379,000.00
LA Dept. of Military to BMC Retail Repair, Inc. (4832 Victoria Dr., Alex., LA 71303) - Modification to Zero Range 1A, Camp Beauregard Rand Area, $170,922.73
(+3.5) Rod’s Economic Indicator Perfect Score is 5.
When top rating of 5 appears week after week I will share with our audience, that “Green Shots” is here and recovery is in full swing.
Legal Recorder Data:
Five business days from time period of October 15tht through 19th
(1)Total of 40 closed deals for the week has positive score
(2) At least one new home sale for the week has positive score
(3) At least one subdivision lot sale for the week garners positive score
(4) Number of lender sales in market place is less than 5% of the total market sales for the week.
(+1.25) Total Weekly Volume:
$4,781,000 with 41 transactions rates a positive score.
(+1.25) Lot Sales:
To rank positive score need one sale market gave us two
West Pointe on the Bayou, LLC (P O Box 12846, Alex., LA 71315) to V & V Builders, LLC (P O Box 12846, Alex., LA 71315) - Lot 325, West Pointe on the Bayou Subd., Phase XII (205 West Bronson Dr., Alex., LA 71303), $22,000.00
Meril J Dufrene, Jr. (5123 Windermere Blvd., Alex., LA 71303) to V & V Builders, LLC (1223 MacArthur Dr., Alex., LA 71303) - Lot 68, St. Andrews Links Estates, Phase II (329 Links Dr., Alex., LA 71303), $55,000.00
(+1.25) New Home Sales:
Looking for one new home sale for positive score and market gave a single sale for positive score.
V & V Builders, LLC (P O Box 12846, Alex., LA 71315) to David C Deville, Jr. & Jenna N Deville (210 West Bronson Dr., Alex., LA 71303) - Lot 357, West Pointe on the Bayou Subd., Phase XII, $298,500.00
(-1.25) Lender Sales as Percent of Total Sales:
Rates positive score if lender sales are below 5% of total sales, this week market gave us two sales with total volume of $308,000 / $4,881,000 = 6.30%
Sec. of HUD to Matt A Martin, III (1409 7th St., Glenmora, LA 71433) - Lots 4 & 5, Blk 4, Melder Addn., $26,000.00
The Evangeline Bank (P O Box 12900, Alex., LA 71315) to James W McClung (703 Forrest Dr., Homer, LA 71040) - Lot 123, St. Andrews Links Estates, Phase III (273 St. Andrews Dr., Alex., LA 71303), $282,500.00
30 year rate was 3.43% this week is 3.46%, the 15 year rate was 2.83% this week it is 2.84%, the 5/1 ARM was 2.99% now 2.99%.
Annual Vein Drain
Wed. Oct 31st from 11am-2pm
Join your fellow REALTORS® for this year’s Blood Drive.
Look for the Life Share Bus in front of Mac’s