Money Report

Approaching real estate and mortgage lending with optimism.

If you are trying to make sense of the condition in the real estate and mortgage industries these days, don’t bother referring back to your old Economics 101 textbook where you first read about the laws of supply and demand. You’ll remember the side of the equation that says when the price of a product goes down, the demand for that product goes up.

Now, let’s apply our economics refresher course to the current housing and lending markets. According to The Wall Street Journal, the median U.S. home price was $201,000 in January of this year, down 4.6 percent from January 2007. The S&P/Case-Shiller National Home Price Index for the fourth quarter was down 8.9 percent from a year earlier, the biggest drop in 20 years. Furthermore, there was a 10-month supply of existing homes for sale in January, up from just under five months during boom times. The supply is up so prices are down.

Are you buried in your own paperwork? Long distance moves, downsizing and spring cleaning can cause us to ask, “Will I ever need all this stuff? And if I do, how will I ever find it?” Alongside the box of old holiday lights and outgrown children’s clothes are boxes upon boxes of cancelled checks, receipts, bank statements and income tax forms going back to your first job and that first tax filing you did by hand. After all, it’s easier to keep everything than sort, make a decision and discard or re-file.

But when you reach that point when you can no longer store it all, it’s time to decide – what can stay and where; what must go and how to safely dispose of private information.

The dark miasma of pessimism that sent stock prices tumbling is obscuring powerful and far-reaching trends that could propel the market higher, much higher, in 2008 and beyond, even though the markets are likely to continue to test us with increased volatility and declines in the near term. There are compelling reasons to believe we are moving out of trouble, and not further in, hence our optimism and enthusiasm for U.S. stocks and our view that this turbulence, in retrospect, will prove an extraordinary opportunity for long term investors.

First, this is a real slump no matter how you work the numbers. Two-thirds of us believe we are already in a recession. The abuses in sub-prime lending have resulted in nearly $100 billion of financial write-downs and losses so far, and for all intents and purposes choked off the credit markets. The housing market is moribund, with foreclosures reaching crisis levels in many U.S. cities.

Valentine’s day is upon us – bringing hope to every romantic while sparking gift anxiety into everyone else. Once again, the challenge of finding the perfect gift to capture the essence of each particular relationship. To some that may mean a Hallmark card; to others, the sky’s the limit. Gold, diamonds, jewelry of all sorts, candy and fragrances all express that romantic “Be My Valentine” feeling. What about a gift of stock? Not very romantic, but for the practical, diet conscious or investment-oriented loved one, this might be the perfect solution.

Two Februaries past, this column reviewed several Valentine stock choices. Let’s see how the lucky recipients fared and whether the investments have lasted longer than the candy and flowers.

You wouldn’t start a long road trip without consulting a map would you? Well, the same holds true for creating a strategy for managing your investments. Developing this strategy is a process, an organized and disciplined approach to making the right choices to ensure that you and your loved ones will be financially secure and that you will have peace of mind knowing you have crafted a well thought-out plan. Carolina First Securities has the people, resources, and know-how to help guide you through this process.

There’s money out there to borrow. The sky is not falling. However, you need to be prepared.

Today you can’t read a newspaper or watch television without hearing about the sluggish real estate markets, subprime loans and fewer lenders actually lending money. Thankfully, I was a Boy Scout growing up back in Ohio, and I well remember the scout motto: “Be Prepared.” This applies to the residential lending industry now more than ever.

Here’s the great news. There’s money out there  to  borrow. The sky is not falling. However, you need to be prepared. What does this mean?

If the recent volatility in the stock, bond and real estate markets due to the credit crunch has made you lose sleep, it may be time to revisit your overall asset allocation strategy. Determining an appropriate allocation for your assets centers on assessing your risk tolerance, time horizon, and need for income.

Traditional lending products such as home mortgages and home equity credit lines can be important to a financial plan...

With the arrival of the New Year, it’s a great time to give your finances an annual physical. Just as you get an annual check up for yourself, it is a great idea to make sure your finances are in good health as well.

Technology is making it even easier for you to keep an eye on your financial planning. While an unlimited transaction checking account is essential for handling day-to-day expenditures, products such as debit cards, telephone banking and Internet banking have taken convenience to new levels. With internet banking products, consumers can transfer funds between accounts, check their balances, pay their bills, and view their account history, all at the click of a mouse, safely and securely. In fact, Internet banking is fast becoming a “must have” service for consumers everywhere due to its ease of use and accessibility.

Are you interested in learning more about managing your money? The new year is a good time to take on this challenge. Hilton Head-based Certified Public Accountant, Christine E. Cassidy, is hosting a series of free workshops with you in mind, titled Wealth Strategies Seminars. Covering a range of financial and tax topics, each seminar features a regional expert discussing their specialty.