Insight

Real Estate and the Economy: Turbulent Waters

Real Estate and the Economy: Turbulent Waters

Roy D. Oppenheim

Roy D. Oppenheim

December 10, 2018 04:39 PM

The US real estate market is slowing down. Higher interest rates at 4.75% are dragging real estate sales, as first time home buyers and real estate investors alike are not purchasing at a rate that would stimulate an otherwise seemingly solid economy.

Perhaps most telling is that those real estate investors who “fix-and-flip” real estate are sitting on the sidelines as home-price appreciation has slowed but houses remain expensive enough that it is hard to squeeze out a profit. In fact, according to the Wall Street Journal, the number of new home loans issued with terms of three years or less, typically used by investors looking to make a quick profit, dropped by 11% in the July-to-September period from a year earlier.

“The home flippers are a good barometer of where the market is heading,” said Daren Blomquist, senior vice president at Attom Data Solutions, a real-estate data firm,. “They are involved in such high and quick turnover of properties that they are hyper aware of market conditions.”

So, does the sluggish real-estate speculation market, an indicator of a healthy housing market, predict another financial crisis? Will there be a housing crash? While the current decline does not necessarily suggest a housing crash like in 2008, there is a slowdown in the housing market.

Interestingly, instead of investing in fixing and selling homes, more and more real estate investors are looking to buy and rent long term residential properties.

What does this mean for the residential real estate values? Time will only tell. Hopefully, the Federal Reserve will put the brakes on continuing to raise interest rates. If real estate is a true barometer of the health of our overall economy, then change is in the air.

From the trenches,

Roy Oppenheim

Oppenheim Law
2500 Weston Rd #404,
Fort Lauderdale, FL 33331
954-384-6114
Email: contactus@oplaw.net
Website: https://www.oppenheimlaw.com
Original Source: https://southfloridalawblog.com/real-estate-and-the-economy-turbulent-waters/

About Roy:

Roy Oppenheim is a sought-after legal expert on issues relating to real estate. In 2009, he started the South Florida Law Blog to address the real estate market and foreclosure crisis. The Blog has been voted the best business and technology blog by the South Florida Sun-Sentinel. Mr. Oppenheim has been a contributor to Yahoo! Homes, featured on HuffPost Live, FOX News, and Lifetime TV, and quoted in prominent national publications, including USA Today, The New York Times and Huffington Post. Most recently, Mr. Oppenheim hosted an Ask Me Anything on Real Estate on Reddit. Mr. Oppenheim has also co-authored two law review articles: Deconstructing The Black Magic of Securitized Trusts, and The Emperor’s New Clothes.

Mr. Oppenheim founded Oppenheim Law, one of South Florida’s leading boutique law firms in Fort Lauderdale, Florida in 1989 with his wife Ellen Pilelsky, and, in 1994, he co-founded Weston Title & Escrow, a trusted South Florida real estate title company whose multilingual staff provides personal, concierge style service in the areas of real estate closings, title insurance, title searches and escrow services.

Weston Title: https://westontitle.com/

Related Articles

How Technological Advances Can Help Corporate Law


by Best Lawyers

Dieter Gericke and Benjamin Leisinger discuss how being aware of technological advances helps them provide corporate financial advice.

An Interview With Homburger

The Economic Landscape Changing Capital Markets Law in Mexico


by Best Lawyers

Michell Nader discusses his firm's 2019 "Law Firm of the Year" award for Capital Markets Law in Mexico.

Nader, Hayaux & Goebel Interview

An Overview of Russia


by Anton Novoseltsev

The approval is only required if it is requested by a member of the supervisory board, a member of the executive board, a CEO, or a 1 percent shareholder.

Overview of Russia

Russia's Evolving Legal Environment and the Next Economic Upswing


by Andrey Goltsblat

Russia's Legal Environment

Trending Articles

Introducing the 2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore


by Jennifer Verta

This year’s awards reflect the strength of the Best Lawyers network and its role in elevating legal talent worldwide.

2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore

Revealing the 2026 Best Lawyers Awards in Germany, France, Switzerland and Austria


by Jamilla Tabbara

These honors underscore the reach of the Best Lawyers network and its focus on top legal talent.

map of Germany, France, Switzerland and Austria

Effective Communication: A Conversation with Jefferson Fisher


by Jamilla Tabbara

The power of effective communication beyond the law.

 Image of Jefferson Fisher and Phillip Greer engaged in a conversation about effective communication

The 2025 Legal Outlook Survey Results Are In


by Jennifer Verta

Discover what Best Lawyers honorees see ahead for the legal industry.

Person standing at a crossroads with multiple intersecting paths and a signpost.

The Best Lawyers Network: Global Recognition with Long-term Value


by Jamilla Tabbara

Learn how Best Lawyers' peer-review process helps recognized lawyers attract more clients and referral opportunities.

Lawyers networking

Jefferson Fisher: The Secrets to Influential Legal Marketing


by Jennifer Verta

How lawyers can apply Jefferson Fisher’s communication and marketing strategies to build trust, attract clients and grow their practice.

Portrait of Jefferson Fisher a legal marketing expert

A Guide to Workers' Compensation Law for 2025 and Beyond


by Bryan Driscoll

A woman with a laptop screen reflected in her glasses

Is Your Law Firm’s Website Driving Clients Away?


by Jamilla Tabbara

Identify key website issues that may be affecting client engagement and retention.

Phone displaying 'This site cannot be reached' message

Medical Malpractice Reform Trends in Texas, Utah, Georgia and SC


by Bryan Driscoll

A fresh wave of medical malpractice reform is reshaping the law.

Medical Malpractice Reform Trends hed

Why Jack Dorsey and Elon Musk Want to 'Delete All IP Law'


by Bryan Driscoll

This Isn’t Just a Debate Over How to Pay Creators. It’s a Direct Challenge to Legal Infrastructure.

Elon Musk and Jack Dorsey standing together Infront of the X logo

Best Lawyers Launches CMO Advisory Board


by Jamilla Tabbara

Strategic counsel from legal marketing’s most experienced voices.

Group photo of Best Lawyers CMO Advisory Board members

As Fla. Pushes to Repeal Controversial 'Free Kill' Law, DeSantis Signals Veto


by Bryan Driscoll

The fight to transform state accountability standards may be in trouble

free kill law hed

Changes in California Employment Law for 2025


by Laurie Villanueva

What employers need to know to ensure compliance in the coming year and beyond

A pair of hands holding a checklist featuring a generic profile picture and the state of California

Key Issues to Tackle on Law Firm Landing Pages


by Jamilla Tabbara

Identify key issues on law firm landing pages to improve client engagement and conversion.

Laptop showing law firm landing page analytics

New Employment Law Recognizes Extraordinary Stress Is Everyday Reality for NY Lawyers


by Bryan Driscoll

A stressed woman has her head resting on her hands above a laptop

Best Lawyers Introduces Smithy AI


by Jamilla Tabbara

Transforming legal content creation for attorneys and firms.

Start using Smithy AI, a content tool by Best Lawyers