SMK Capital Management LLC
Office | 310-344-1970
Fax | 310-496-0804

U.S. Real Estate Market Trends

The US real estate market has undergone a dramatic shift since it peaked between 2006-2007.  Significant amounts of distressed properties have become available in the market on a daily basis. This sub-prime mortgage market crisis has brought unprecedented opportunities to buy real estate at bargain prices.

At SMK Capital Management we continuously track and monitor key market timing indicators including: default notices, existing home sales, new home sales, average foreclosure pricing, inventory levels, vacancy rates, new home building permits and the home builders confidence index to name a few. Tracking national and regional market trends is of paramount importance when making critical investment decisions due to the simple fact that every market is effected differently by various economic factors.

SMK’s primary areas of geographic focus are in the Midwest and the Sunbelt states.  Management’s experience in purchasing financially distressed properties in these regions results in market entry (post renovations) between 30-50% below previous market values which are currently near 10 year lows in many of these markets. These regions have experienced the greatest declines in real estate values in the U.S. over the past several years and current trends point to a bottoming and leveling of price declines. Many relate & compare the current drastic decreases in real estate values with the post great depression, making it an opportune time to invest in real estate.

 

The staggering decline in home prices since 2007-2008 indicates that current prices are finally nearing the historical inflation adjusted trend, making it an opportune time to invest in U.S. Real Estate.