CGFM reality - Certified Government Financial Manager (CGFM) Updated: 2024
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CGFM Certified Government Financial Manager (CGFM)
Exam ID : CGFM
Exam Name : Certified Government Financial Manager(R)
Questions : 115 questions
Duration : 2 hrs 15 min.
I: Organization, Structure and Authority of Government (15%)
A. Demonstrate an understanding of the levels of government, including:
- The three levels of government: federal, state and local.
- The interrelationships among the three levels of government: federal, state and local.
B. Demonstrate an understanding of the branches of government – legislative, executive, judicial – including:
- The roles of the three branches.
- The interrelationships among the three branches.
- The checks and balances through separation of powers among the three branches.
C. Demonstrate an understanding of the components of federal, state and local governments (e.g., central management and accountability agencies, departments, agencies, bureaus, commissions, divisions).
D. Demonstrate an understanding of the authorities and responsibilities of the government (e.g., government-wide and departmental), including:
The federal government, its hierarchy and constraints (e.g., U.S. Constitution, federal laws, executive orders, rules and regulations).
The state governments, their hierarchies and constraints (e.g., U.S. Constitution, state constitutions, state laws, executive orders, rules and regulations).
The local governments, their hierarchies and constraints (e.g., state constitutions, state laws, local charters, local ordinances, executive orders, rules and regulations).
Tribal government sovereignty.
E. Demonstrate an understanding of the authorities and responsibilities of the different types of governments, including:
The differentiation among general-purpose governments, special-purpose governments and quasi-governmental entities (e.g., federal, states, cities, counties, territories, authorities, school districts, government corporations, government-sponsored enterprises).
The interrelationships among general-purpose governments, special-purpose governments and quasi-governmental entities.
The role of jointly-governed organizations (e.g., transit agencies).
II: Legally-Based Implications of the Government Financial Environment (15%)
A. Demonstrate an understanding of the implications of sovereignty in the levels of government, including:
- The meaning, application and limitations of sovereign authority.
- The power of governments to tax and borrow.
- The power of the federal government to establish monetary policy.
B. Demonstrate an understanding of the budget, including:
- The role and significance of the budget in government.
- The objectives of the budget (e.g., policy document, operations guide, financial plan, communications device).
- The objectives of the budget process (e.g., define priorities, debate policy, allocate resources, identify revenue sources).
- The legal aspects of the government budget (e.g., control levels, spending limits, fund types, balanced budgeting).
- The principles of legislative control over governmental finance (e.g., appropriating funds, establishing spending levels, establishing spending conditions).
- How the executive branch controls spending (e.g., monitoring budget execution, planning for allocation of resources over time and among programs).
- How judicial decisions affect government spending.
- The role of other budget control devices (e.g., apportionments, allotments, encumbrances/obligations, funds, function, department, activity, object).
C. Demonstrate an understanding of how establishing special funds or dedicated revenues helps fulfill legal requirements.
D. Demonstrate an understanding of legislative “earmarking.”
III: Demonstrate an Understanding of the Government Management System (Cycle), Including: (16%)
A. The elements of the government management system, including strategic planning, programming, budgeting, operations, accounting, reporting and auditing.
B. The interrelationships among the elements of the government management system.
C. The importance of data in the government management system (cycle).
IV: Governmental Financing Process (24%)
A. Demonstrate an understanding of the role of taxation, including:
- The elements of tax policy (e.g., what to tax, who to tax, how much to tax, why to tax).
- The various types of taxes for each level of government and the roles and advantages of each type (e.g., income, wealth, consumption).
- The nature and role of tax expenditures.
- Tax limitations and exclusions.
B. Demonstrate an understanding of intergovernmental revenues, including:
- The differences among contracts, shared revenues and grants.
- The differences among the types of grants (e.g., formula grants, discretionary grants, block grants).
- The requirements and expectations of the grantor and grantee throughout the grant lifecycle, including the role of the Uniform Guidance.
C. Demonstrate an understanding of other forms of financing, including:
Other forms of government revenues (e.g., investment income, user fees, licenses, lotteries, donations).
The rationales for establishing user fees (e.g., recover costs, expand service capacity, encourage or limit use of services).
The use of public-private partnerships.
D. Demonstrate an understanding of the role of debt, including:
- Purposes of entering into debt.
- Factors that should be considered before entering into debt (e.g., ability to pay, purpose, interest rate, tax base).
- The types of debt limitations (e.g., statutory, bond covenants).
- Factors that should be included in debt policies (e.g., available tax base, debt maturities).
- The various types of financing options (e.g., notes, bonds, lease-purchase, certificates of participation).
- The sources and methods of repaying debt (e.g., dedicated taxes, user fees, general revenues).
- The role of credit rating agencies in the debt issuance process.
- The role of insurance and guarantees in the debt issuance process.
V: Identify the Concepts, Definitions and Notions of Public Accountability, Including: (12%)
A. The meaning and purpose of accountability in the government environment (e.g., the Chief Financial Officers (CFO) Act of 1990).
B. The role and key attributes of accountability (e.g., disclosure, organization structure, reporting),
and their interrelationships.
C. Elements for which a government should be accountable (e.g., performance, financial, compliance, efficiency and effectiveness, stewardship of assets).
D. The primary stakeholders in accountability (e.g., legislators, taxpayers, other governments, investors, creditors, underwriters, future generations).
E. The groups that help to establish and maintain accountability (e.g., legislative bodies, media, management, analysts, employees, taxpayers).
F. The methods used to demonstrate and assess accountability and transparency (e.g., audit reports, performance reports, oversight hearings, program evaluations, service efforts and accomplishment (SEA) reports, electronic reports).
G. The techniques used to assess fiscal sustainability and solvency.
H. Concepts of open government, data transparency and citizen-centric reporting (e.g., Digital Accountability and Transparency Act of 2014 (DATA Act), open checkbooks, open book, sunshine laws).
VI: Demonstrate an Understanding of Ethics as Applied to the Government Environment, Including: (10%)
A. The key concepts related to ethical responsibility to the public, professional conduct (e.g., actual or perceived conflicts of interest, independence, objectivity, due care) and the sources of guidance (e.g., the AGA Code of Ethics).
B. The steps a government financial manager needs to take to avoid a conflict of interest and to ensure objectivity and independence.
C. The concept of due care in the performance of professional duties.
D. Activities or situations that are inconsistent with the responsibilities of public officials and employees.
E. The appropriate course of action to avoid the reality or the perception of improper use of one's office for personal gain.
F. Personal responsibility as it relates to organizational codes of conduct (e.g., whistle blower,
nepotism).
VII: Demonstrate an Understanding of Providing Government Services and Information Electronically, Including: (8%)
A. Delivery of government services and e-government (e.g., drivers license renewal, online bill and tax payment).
B. Stakeholder real-time access to information, including electronic financial reporting.
C. The use of various media and devices for communications and providing services (e.g., social networking, apps, mobile devices).
D. Security and privacy considerations (e.g., the requirements of the National Institute of Standards
and Technology, encryption, cybersecurity).
I: Governmental Financial Accounting, Reporting and Budgeting: General Knowledge (40%)
A. Demonstrate an understanding of the influences, objectives and role of standards, including:
The unique financial aspects of the governmental environment that differ from the private sector (e.g., profit versus service, importance of budget).
The concept of interperiod equity.
The objectives of governmental financial reporting (e.g., financial accountability, budgetary accountability, program accountability).
The major uses of governmental financial reporting (e.g., budgetary compliance, compliance with laws and regulations, assessing financial position, assessing results of operations, assessing sustainability).
The characteristics of information in governmental financial reporting (e.g., understandability, reliability, relevance, timeliness, consistency, comparability).
The roles of the Financial Accounting Standards Board (FASB), Governmental Accounting Standards Board (GASB) and Federal Accounting Standards Advisory Board (FASAB).
The role of the International Public Sector Accounting Standards Board (IPSASB).
Due process in the setting of accounting standards (e.g., discussion memorandum, invitation to comment, preliminary views, exposure draft, public hearing, task forces).
The purpose of the hierarchy of generally accepted accounting principles for state/local and federal accounting and financial reporting.
The basic concepts and requirements of Open Government financial reporting.
B. Demonstrate an understanding of the concepts of managerial cost accounting and fee establishment, including:
The purposes for accumulating and reporting cost information.
The concept of full cost of outputs, incorporating inter-entity costs.
The requirements of FASAB Statement of Federal Financial Accounting Standards (SFFAS) 4, as amended: Managerial Cost Accounting Concepts and Standards.
Determining the costs under an intergovernmental cost-reimbursement contract or grant (as outlined in the Uniform Guidance).
Identification of the methods for assigning and allocating costs in a given situation (e.g., direct, indirect).
Computation of the fee to be charged to a user.
Various cost recovery objectives (e.g., total direct costs, operating costs, full costs, replacement costs, incremental costs).
C. Demonstrate an understanding of the concepts of budgeting, including:
The key elements of the budget process, from provision of initial guidance through preparation, review, adoption, execution and accounting.
The structure of the budget (e.g., organizational unit, program, function, category, character, fund, line item, object).
The features of various budgetary approaches (e.g., baseline, line item, program, zero-base, performance).
The various means for financing capital projects, including the role of a capital budget.
The methods of forecasting revenues and expenditures.
The various means of budgetary control (e.g., revenue monitoring, encumbrance/obligation control, vacancy controls, allotment, apportionment).
D. Demonstrate an understanding of the general principles of governmental financial accounting, including:
Basic accounting processes (e.g., debits, credits, ledger accounts, stock and flow statements, accounting period).
The differences among the various measurement focuses and bases of accounting (e.g., economic resources, current financial resources, cash, accrual, modified accrual).
The effect of applying the various measurement focuses and bases of accounting to specific transactions.
Exchange and exchange-like versus non-exchange transactions.
How to adjust the allowance for doubtful accounts under alternative methods (e.g., percentage of sales or percentage of accounts receivable).
The differences among various methods of valuing inventory (e.g., First-in, First-out (FIFO), Last-in, First-out (LIFO), average cost).
Situations that require recording depreciation and calculation of the same.
Recording contingencies (e.g., judgments, claims).
II: Demonstrate an Understanding of State and Local Financial Accounting and Reporting, Including: (30%)
A. The application of the GASB standards for determining the reporting entity, including component units.
B. The purpose of each fund type within each fund category, and its related basis of accounting.
C. The form and content of the Comprehensive Annual Financial Report (CAFR).
D. The purpose of popular reporting.
E. The form and content of the basic financial statements, including:
Government-wide financial statements.
Fund-level financial statements.
Notes.
F. The reporting of fund balance in governmental funds.
G. The form and purpose of required supplementary information (RSI).
H. How to measure, record and report the purchase of capital assets, including assets acquired through a capital lease.
I. How to measure, record and report the incurrence and repayment of general long-term obligations in a governmental fund.
J. How to measure, record and report common, fundamental current assets and liabilities, revenue, expenditures, and other financing sources and uses when using modified accrual basis of accounting (e.g., property tax, grants, shared revenues, capital outlays, bond proceeds, debt service, payroll, accounts receivable).
K. How to measure, record and report common, fundamental assets, liabilities, revenue and expense transactions when using accrual basis of accounting (e.g., taxes, grants, shared revenues, capital assets, long-term debt, operating expenses, pensions, payroll, accounts receivable).
L. The types of interfund transactions, and how they are accounted for.
M. How to consolidate or eliminate transactions between the fund level and the government-wide level for governmental activities.
N. The required disclosures for cash deposits with financial institutions and investments, including repurchase agreements.
O. The option and criteria for using the modified approach for infrastructure.
P. The entries for recording the budget, modifying the budget and recording encumbrances and expenditures.
Q. How to reconcile the budgetary information to the generally accepted accounting principles (GAAP) information.
R. How to reconcile the fund financial statements to the government-wide financial statements.
S. Government combinations (e.g., mergers and acquisitions, transfers of operations).
III: Demonstrate an Understanding of Federal Financial Accounting and Reporting, Including: (30%)
A. The role of FASAB and the relationships among the Office of Management and Budget (OMB), U.S. Department of the Treasury and the Government Accountability Office (GAO) in federal financial accounting and reporting.
B. Key budgetary terms (e.g., appropriations, budget authority, budgetary resources, object class, outlays, receipts, offsetting collections, deficit).
C. The components of the budgetary equation.
D. The relationship and differences between budgetary and proprietary accounting.
E. Types of funds (e.g., general, trust, revolving).
F. The components and use of the U.S. Standard General Ledger.
G. How to record common, fundamental budgetary transactions (e.g., appropriation, apportionment, allotment, commitment, obligation, expenditure).
H. How to record common, fundamental proprietary transactions (e.g., warrants, accounts payable, payroll, accounts receivable, pensions, investments, depreciation).
I. Determining the reporting entity.
J. The form and content of an agency financial report (AFR) and a performance and accountability
report (PAR).
K. The purposes, form and content of the basic financial statements.
L. The concepts of consolidation and intragovernmental transactions.
M. The purposes and form of the notes to the financial statements.
N. The purposes and form of required supplementary information (RSI).
O. The concept of Fund Balance with Treasury.
P. The concepts of accounting for loans and loan guarantees (Credit Reform Act).
Q. The basic requirements for the U.S. Consolidated Financial Report.
I: Financial Management Functions (25%)
A. Demonstrate an understanding of cash management, including:
Legislation that affects governmental cash management.
Controls appropriate for governmental cash management.
Considerations in establishing banking relationships (e.g., competition, servicing, compensating balance).
Techniques for accelerating collections (e.g., electronic fund transfer (EFT), centralized collections, lockboxes, e-Collections).
Techniques for timely payment (e.g., warehousing payments, EFT, credit cards, electronic invoicing).
The role and control of electronic payments (e.g., smart cards, benefit cards, EFT).
The existence of and the need to identify, prevent and recover improper payments.
B. Demonstrate an understanding of investment management, including:
Concepts and relationships among risk, liquidity and yield, and the associated tradeoffs.
Types of investments for operating funds and pensions.
The concept of fiduciary responsibility, including the duty of loyalty and duties to care, act in a prudent manner and diversify plan assets.
The components of an investment policy, including standards of care, objectives, conflicts of interest and authorization.
Investment management considerations (e.g., selection of money managers, role of prudent experts, understanding of markets, monitoring and evaluating performance, risk assessment/avoidance, internal controls).
C. Demonstrate an understanding of loan and loan guarantee programs and debt collection, including:
The components of loan and loan guarantee programs (e.g., rationale, credit extension, account servicing, debt write-off, performance measurement).
The components of delinquent debt collection (e.g., salary and refund offsets, collection agencies, delinquency rates, aging, reporting requirements).
D. Demonstrate an understanding of procurement management, including:
The elements in the public procurement process (e.g., authorized procurement officials, compiling a bidders list, public advertising, preparing and issuing an invitation to bid (ITB) or a request for proposal (RFP), evaluating proposals, awarding the contract, writing the contract).
Techniques for assuring full and fair competition (e.g., advertising, direct contact to likely vendors, registries).
Contract efficiencies (e.g., purchase cards, bulk purchasing, inter-agency procurements).
Evaluation selection criteria (e.g., past performance, delivery time, price).
The monitoring and acceptance process to ensure that contract specifications are met.
E. Demonstrate an understanding of property management, including:
The elements of a property management system (e.g., record keeping, safeguarding, maintenance, reporting).
The procedures for property disposal (e.g., identifying surplus, disposition methods).
F. Demonstrate an understanding of operating materials and supplies/inventory management, including:
The elements of an operating materials and supplies/inventory management system (e.g., policies, classifications, controls, reorder decisions).
Ways to safeguard operating materials and supplies/inventory (e.g., physical control, tagging, periodic inventory, stewardship, radio-frequency identification (RFID).
G. Demonstrate an understanding of financial management systems, including:
The concept of an integrated financial management system.
User needs for real-time access to data across the enterprise (e.g., use of dashboards, data visualization).
Business process re-engineering in the development and implementation of information systems.
The concept of enterprise resource planning (ERP) systems.
The various approaches to meeting system needs (e.g., off-the-shelf, cross-servicing, outsourcing, custom design, shared services).
The elements of a disciplined development process (e.g., requirements management, testing, data conversion, systems interfaces, configuration management, risk management, project management, quality assurance).
Techniques for project management (e.g., defining interrelationships and tasks; resource management; cost, schedule and performance monitoring; independent verification and validation; change management).
Methods for assuring the reliability and completeness of data.
The concept of the continuity of operations plan (COOP).
The use of cloud computing.
H. Demonstrate an understanding of shared services, including:
The service offerings, planning, transition steps and costs of shared support services.
Importance, advantages and disadvantages of shared services.
II: Demonstrate an Understanding of Financial and Managerial Analysis Techniques, Including: (15%)
A. The conduct of the following types of analyses: present value, future value, cash flow, pay-back, trend, ratio analysis, strategic sourcing, regression analysis, earned value management and flowcharting.
B. Identification of the sources of information used and reliability of the data for financial and managerial analysis (e.g., accounting records, performance records, financial statements, census data).
C. The use of forensic techniques, such as data mining.
D. The use of advanced data analytics.
III: Internal Control (25%)
A. Demonstrate an understanding of internal control, including:
The objectives of internal control.
The concepts of cost-benefit and reasonable assurance.
The components and principles of internal control, as specified by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Integrated Framework: control environment, risk assessment, control activities, information and communication, and monitoring.
Cyber security (e.g., general and application controls).
Identification and correction of internal control deficiencies.
Involvement of shared service providers.
B. Demonstrate an understanding of the application of internal control to:
Programs and operations, including information technology.
Financial reporting.
Compliance.
Fraud, waste and abuse prevention and detection.
C. Demonstrate an understanding of internal control responsibilities, including:
Management's responsibility to establish, monitor, remediate and report on internal control.
Management's responsibility for detecting and reporting fraud, waste and abuse.
The independent auditor's responsibility regarding internal control.
The roles of the internal auditor in the internal control process.
D. Demonstrate an understanding of the internal control evaluation process, including:
The process for documenting and assessing internal control.
The roles of management and the auditor in the evaluations of internal control including the risk of fraud, waste and abuse.
E. Demonstrate an understanding of the internal control reporting process, including:
How management reports on internal control, including the use of various types of assertions.
The auditor's reporting on internal control.
F. Demonstrate an understanding of Enterprise Risk Management (ERM), including:
Relationship to internal control.
Application of ERM.
IV: Demonstrate an Understanding of Performance Measurement/Metrics/Service Efforts and Accomplishments (SEA), Including: (15%)
A. The objectives of financial and non-financial performance measures.
B. How performance measures relate to organizational goals and objectives.
C. How financial and non-financial performance measures are linked.
D. How financial and non-financial performance measures are integrated with the strategic plan and budget.
E. The uses of performance measurement and reporting to demonstrate public accountability and transparency.
F. The uses of performance measurement and reporting to Strengthen allocation of resources and oversight of performance.
G. The uses of performance measurement and reporting to Strengthen effectiveness and efficiency.
H. The types of performance measures: inputs, outputs, outcomes and efficiency measures.
I. The characteristics of performance measurement data (e.g., relevant, understandable, comparable, reliable, timely, verifiable, actionable, cost-beneficial).
J. Baselines and benchmarks.
K. The role of stakeholder input in the performance process.
L. The legal requirement and guidance for performance measurement.
V: Auditing (20%)
A. Demonstrate an understanding of auditing, including:
Types of auditors (e.g., external, internal).
Objectives of financial audits.
Objectives of attestation engagements.
Objectives of performance audits.
Uses of audit reports.
The concept of materiality.
B. Demonstrate an understanding of standards, including:
The sources of auditing standards for audits of government organizations.
The interrelationships among various audit standards-setting organizations (e.g., the Government Accountability Office (GAO), American Institute of Certified Public Accountants (AICPA) Auditing Standards Board and the Public Company Accounting Oversight Board (PCAOB)).
The concept of general standards (e.g., independence, professional judgement, competence, quality control and assurance).
The concept of auditor independence and the impact of non-audit professional services on independence.
Standards for financial audits.
Standards for attestation engagements.
The responsibilities of the auditor in an audit follow-up program.
Fieldwork and reporting standards for performance audits.
The types of activities that are considered sensitive in a government audit (e.g., taxpayer information, payments to informants, the Health Insurance Portability and Accountability Act (HIPAA) data, personally identifiable information (PII)).
C. Demonstrate an understanding of the responsibilities of the auditee, including tasks related to:
Preparing for and procuring audit services.
Supporting the audit process.
Preparation of the management representation letter.
Audit follow-up and corrective action plan based on audit findings.
The role of an audit or audit advisory committee.
D. Demonstrate an understanding of the components of the Single Audit Act and the role of the Office of Management and Budget (OMB), including:
The scope and purpose.
The required reports.
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https://killexams.com/pass4sure/exam-detail/CGFM
Question: 198
Most States require that local government engage the services of an _________ firm to
audit their financial statements.
A. Government accountability office
B. Certified public accounting firm
C. Government finance officers association
D. None of these
Answer: B
Question: 199
The auditor(s) should:
I- Adequately plan the work and properly supervise assistants
II- Properly study internal accounting controls to determine their reliability
These points are the part of
A. General Standards
B. Field work Standards
C. Reporting Standards
D. All of these
Answer: B
Question: 200
The auditors provide _______________ of the reliability of the financial statements.
A. Reasonable assurance
B. Sample
C. Material misstatement
D. None of these
Answer: A
Question: 201
Which of the following opinions is not expressed by auditors as to whether financial
statements are expressed fairly in all material respects with respect to generally accepted
accounting principles?
A. Unqualified opinion
B. Qualified opinion
C. Disclaimer
D. Reversal opinion
Answer: D
Question: 202
If a reportable condition might result in a material misstatement of financial statements,
then it must be noted as a:
A. Material weakness
B. Unqualified report
C. Revised situation
D. Adverse condition
Answer: A
Question: 203
Which of the following danger sign/s help to detect Auditors fraud?
A. Borrowing small amounts from fellow employees
B. Pronounced criticism of others, endearing to divert suspicion
C. Replying to Questions with unreasonable explanations
D. All of these
Answer: D
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Dreaming of a new home or car this year – here are some steps Americans are taking to make it come true in 2024. (iStock)
Americans said it will be harder to meet their financial goals in 2024 because of the increased living costs, a accurate survey said.
Six in 10 respondents said they would end the year overspending beyond what they budgeted, and 47% expected to miss their financial goals primarily because of high inflation and increasing costs, according to Bread Financial's survey. Moreover, 57% said that meeting financial objectives in 2024 would be more challenging than the previous year, with 64% citing rising costs as the main reason.
Although inflation has been moderating, prices for most things continue to trend high, putting a strain on consumers' pocketbooks. On an annual basis, the Consumer Price Index – a measure of inflation – rose 3.1% in November, and Core CPI, which excludes more volatile food and energy prices, held steady at 4%. Americans continue to pay high prices for essentials like food, shelter and insurance.
In addition to dealing with high costs, the Federal Reserve has increased interest rates since March last year, pushing the federal funds rate to a 22-year high of 5.25% to 5.5% to slow the economy and lower soaring inflation to a 2% target rate. The stricter monetary policy stance has impacted how much consumers pay to borrow, pushing rates on auto loans, credit cards and mortgages to unmanageable levels.
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BUY A HOME IN THESE STATES TO GET STUDENT LOAN DEBT RELIEF
Americans manage by doing these three things
Americans are counteracting the challenges of higher living costs by budgeting, cutting back on expenses and paying down debt, the survey said.
Forty-eight percent of Baby Boomers planned to trim spending, and 39% said they would reduce debt to meet their financial goals in 2024. Twenty-nine percent of Millennials and 30% of Gen Z planned to save for a significant purchase like a home or car, while 40% of Millennials and 35% of Gen Z are focused on improving their credit score.
"The new year is a perfect time for consumers to take stock of their financial goals and plan for the next year," Bread Financial SVP and chief marketing officer Nick Antonelli said. "This research shows the importance of focusing on financial wellness and prioritizing a strong foundation in the coming year."
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HOMEOWNERS COULD SAVE TENS OF THOUSANDS IN DAMAGES BY USING SMART DEVICES
Homeownership dream unaffordable
High mortgage rates, high home prices and a limited housing supply have all contributed to a tough housing market that many homebuyers find unaffordable. Roughly 63% of Americans said they can't afford a home, with 87% of Gen Zers and 62% of Millennials unable to afford a home today, according to a recent survey by IPX1031.
Despite homebuyers' challenges, 13% of Americans plan to buy a new home in 2024, the survey said. Here are some steps you can take to make the dream of homeownership a reality:
Boost buying power by improving your credit
Buyers can save additional money on home financing by understanding and improving their credit profile. A Zillow analysis showed that borrowers with an "excellent" credit score — between 760 and 850 — could be saving up to $103,626 in mortgage interest payments over the life of a 30-year fixed-rate loan, based on a typical home priced at $354,165.
Know what you can realistically afford
Having a realistic goal for the type of home you can afford can help set you up for success. That figure should include all-in monthly costs instead of looking at list prices.
Zillow recommended that buyers start with a mortgage calculator and affordability tools to understand what goes into a mortgage payment and what they can realistically afford on a monthly basis.
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MORTGAGE LOAN LIMIT RISES ABOVE $1.1M AS HOME PRICES SURGE
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While Wall Street has been hitting record highs on the prospect of interest rate cuts by the US Federal Reserve in 2024, at least three and possibly more, a key sector of the US economy with crucial links to the financial system, is being hit by the rise in rates that has taken place since March 2022.
According to data from the Mortgage Bankers Association, reported on by the Financial Times (FT), “billions of dollars of debt will fall due this year on hundreds of big US office buildings that their owners are likely to struggle to refinance at current interest rates.”
There are $117 billion worth of mortgages based on offices which need to be repaid or refinanced this year. Many of the mortgages were taken out when interest rates were at ultra-low levels because of the quantitative easing police pursued the Fed and other central banks for almost a decade and half after the financial crash of 2008 and the crisis of 2020 when COVID struck.
The FT report cited the comments of a real estate finance lawyer at a major firm who said it would be a problem to get some of the refinancing done.
“We’re seeing deals where even sophisticated borrowers are calling it a day and asking their lenders whether they would like to take the keys,” he said.
The commercial real estate sector has already been hit with a shock because of the collapse of the Austrian firm Signa in December which has now put up for sale half of the Chrysler building in New York in order to raise cash.
While Signa’s owner, the billionaire René Banko assembled what has been characterised as a “financial time bomb”—gorging himself on “cheap financing left, right and centre” as one description put it—his activities were only one of the more extreme examples of a broader process.
Last November it was reported by industry tracker BankRegDate that delinquent commercial real estate loans had reached their highest rate in a decade—the consequence of higher interest rates and the fall on demand for office space as a result of growth of remote working in response to the pandemic.
The volume of loans on which property owners had missed more than one payment jumped by 30 percent, $4 billion, in the September quarter and increased by $10 billion in the past year.
It is expected the delinquencies are going to continue with Bill Moreland of BankRegData telling the FT that commercial real estate lending was “getting ugly fast.”
Larger banks have resources to weather the storm, at least so far, but much of lending in the US is carried out by small regional banks. They have already been hit by the rise in interest rates because of the loss of value on the government bonds in which they placed their cash, because it was a “safe” security.
This situation led to the demise of three banks in March, but the problem went across the board with many banks “underwater” where their total liabilities is greater than the book value of their assets.
The FT reported that last month “a group of US economists found that 40 percent of office loans on bank balance sheets were underwater, potentially causing problems for dozens of regional banks holding them.”
The problems for commercial real estate are long term. Back in April, Bloomberg reported that a “wall” of commercial and real estate debt worth almost $1.5 trillion would become due for repayment before the end of 2025. The big question facing these borrowers was “who is going to refinance them?”
A note by Morgan Stanley analysts at the time said refinancing risks were front and centre as it estimated that office and retail property valuations could fall by as much as 40 percent from peak to trough, increasing the risk of defaults. Things have not improved since then and, as the Bloomberg report noted, would continue to worsen.
It is not only small and regional banks that are being impacted. Problems are emerging as well in the high end of the finance sector and commercial real estate.
Earlier this week, the Wall Street Journal reported that one of the “hottest fundraising juggernauts” on Wall Street, nontraded real-estate investment trusts (REITS) that allowed investors to take part in the 2019‒2022 property boom, had “run off the rails” last year.
Redemptions from the funds soared last year as investors sought to cash in and on occasions the trusts had to implement rules that limited the rate at which people could get their money back.
Nontraded REITs raised $9.8 billion the year to November compared to $33.2 billion in 2022, as investors pulled out $17.4 billion.
The article said that while the pace of redemptions had slowed to some extent towards the end of last year, outflows were expected to exceed funds raised in 2024. This made “the business a symbol of the worst downturns to hit the commercial-property industry since World War II.”
An article in the New York Times at the end of last year said the building spree which had reshaped the Manhattan skyline over the past 25 years was over.
“Rising construction costs and interest rates have significantly driven up the price to build. Banks are increasingly reluctant to finance such construction while Manhattan has record office vacancies,” it said.
Office developers had been hit by a one-two punch. First the decline in demand because of COVID and then soaring interest rate “kryptonite for an industry built on debt.”
At the end of November nearly 18 percent of all office space in Manhattan was available for lease, much of it in older buildings built after World War II.
The average asking rent for office space in Manhattan is $75 per square foot. But with higher construction costs, rates and increased interest rates developers of new buildings would need to charge between $200 to $300 per square foot.
Such figures, coupled with the mounting commercial real estate problems across the country, indicate that the boom of the past quarter century, based on some of the lowest interest rates in history, is over and a financial reckoning is coming.
California’s independent financial watchdog, the Legislative Analyst’s Office, is sounding a budget alarm that both Gov. Gavin Newsom and the state Legislature may not want to hear, but must.
The state’s heavy reliance on income tax leaves the California budget uniquely vulnerable to the gyrations of Wall Street and the economy. The LAO is estimating that income tax collections fell a stunning 25% during the 2022-23 fiscal year, with some late payments still trickling in. And the pattern appears to be continuing this fiscal year.
Absent an unexpected upward shift in the economy, the LAO is bracing Newsom and the Legislature to anticipate a $68 billion budget gap. To put this in perspective, Sacramento could exhaust its $22.3 billion in reserves for “budget stabilization” and still face a $46 billion problem.
California has survived these cycles before, but not without severe pain and leaders who don’t sugarcoat the problem. Finance is emerging as a real test for the governor and new legislative leadership.
California taxes higher income-earners more than most states — something that Newsom is proud of as a progressive way of revenue generating by government. But this isn’t nearly as reliable a source of income as others, such as property taxes that are limited by a third rail of California Politics, Proposition 13 of 1978.
California companies that go public, for example, can create a stock windfall for its founders and big tax bills. In 2022 and 2023, the number of companies that went public is down 80% compared to 2021, according to the LAO.
Costs have gone up. The mortgage payment for a median California home has risen from $3,500 to $5,400 in the past two years, in large part due to higher interest rates. Higher costs have resulted in Californians buying less, and the result has been a drop in sales tax revenue. Combine that with the drop in corporate tax revenue and personal income tax revenue, and California has a triple whammy budget problem.
“As always, this forecast is highly uncertain,” the LAO warns. But the uncertainty cuts both ways. “It is entirely possible that revenues could end up $15 billion higher or lower than our forecast for 2023-24 and $30 billion higher or lower for 2024-25.”
Ultimately, it is Newsom’s Department of Finance which will be the official bearer of the bad news, based on its own ongoing tabulations and forecasts. But there is nothing to suggest that the LAO isn’t in the ballpark when it comes to assessing the problem.
Newsom should make every effort to dive into the existing fiscal year budget and cut discretionary spending where possible. One of the most expensive bills Newsom signed this year, for example, was to increase the minimum wage for an array of health care workers to $25 an hour over time. That single action is expected to add $4 billion worth of costs to next year’s state budget.
The Legislature, meanwhile, has tens of billions of dollars worth of bond proposals for the November ballot that have yet to make it to the governor’s desk. The idea of borrowing to maintain necessary investments will be tempting. But borrowing isn’t free, and comes with sizable annual debt repayments. Both the governor and the legislature should be cautious on additional debt.
The autopilot nature of the spending plan in the existing budget has always been worrisome. The state budget doubled in just six years before the post-pandemic downturn began to happen. Any budget that grows that fast will have some fat to be trimmed. Nobody likes the scalpel, but making the effort to find questionable spending at every level of state spending will lessen the inevitable pain that is coming.
All signs point to some ugly budget cycles facing Sacramento and the state. The sooner Newsom and the Legislature confront the challenge, the better.
Written by the Sacramento Bee editorial board. Distributed by Tribune Content Agency, LLC.
A new government report has for the first time identified artificial intelligence as a potential risk to the nation's financial stability.
The Financial Stability Oversight Council (FSOC) — a group that's charged with monitoring potential vulnerabilities to the financial sector and counts Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and Securities and Exchange Commission Chair Gary Gensler as members — acknowledged this risk, along with 13 others, in its annual report, which was released Thursday.
"The reliance of AI systems on large datasets and third-party vendors introduces operational risks related to data controls, privacy, and cybersecurity," the report reads.
In accurate years, the rapidly developing technology has been more widely used in the financial sector to help identify patterns. Gensler, however, warned of the inherent risks and said it might heighten financial fragility.
"There are challenges regarding explainability, bias and accuracy," Genseler said, according to remarks prepared for delivery at the FSOC's open session meeting Thursday. "AI also can be used by bad actors to deceive people in the markets."
In May, an AI-generated image purported to show an explosion near the Pentagon. The image, which was determined to be fake, spread across social media, rattling the stock market and causing a brief sell-off.
In her prepared remarks for the meeting, Yellen predicted the adoption of AI will become more widespread and said its usage must be managed carefully.
"Supporting responsible innovation in this area can allow the financial system to reap benefits like increased efficiency, but there are also existing principles and rules for risk management that should be applied," Yellen said.
Silicon Valley Bank collapse
The report also offered a post mortem on the March collapse of Santa Clara-based Silicon Valley Bank, which ranked as the second largest bank failure in U.S. history and triggered a regional banking crisis.
On March 10, the FDIC seized SVB — as well as New York-based Signature Bank — and guaranteed deposits after a run on the bank saw customers withdraw $42 billion in a single day. Additional measures taken by the Federal Reserve and Treasury Department helped contain the fallout.
The report cited poor risk management and a heavy reliance on uninsured deposits among the reasons for the bank's failure. Rising interest rates also left the bank in a vulnerable position, leaving it unable to cover its deposit obligations. A separate review in May by the Federal Reserve found that its own regulatory standards were not sufficient.
Going forward, the FSOC "recommends that banking agencies closely monitor uninsured deposit levels and depositor composition and collect additional data as necessary."
Still, despite the new recommendations and aggressive actions taken in the spring, some risk remains.
"When two regional banking firms and a global financial firm failed last March, FSOC member agencies acted quickly to mitigate the serious risk of contagion and to maintain confidence in the banking system," Yellen said. "But the failures also underscored that vulnerabilities remain."
Vulnerabilities in commercial real estate sector
The report identifies another vulnerability for regional and community banks, too — their "significant concentrations" in the commercial real estate sector. It's estimated that commercial real estate loans total about $6 trillion — and half of those are held by banks.
According to the report, delinquency rates for some commercial real estate loans, especially those backed by office properties, increased in the first half of 2023. Banks expect delinquency rates to continue to rise since demand for office space has continued to slump since the pandemic. Commercial developers are struggling to keep up with their mortgages because office vacancies remain high.
Also, so-called refinancing risk -- when borrowers can't restructure their debt -- is elevated "due to the sizeable amount of upcoming maturities in 2024," the report finds. "These factors can lead to potential financial stability risks if they result in financial distress among financial institutions and investors that spills over into other financial institutions and the broader system."
Other risks: vulnerabilities in cybersecurity, climate and crypto
Other risks identified in the report include cybersecurity vulnerabilities, climate and cryptocurrencies.
Cyber risk is "pervasive throughout the economy," the report finds, and the council says enhanced partnership between state and federal agencies and private firms — including information sharing — could be key to mitigating risk.
FSOC is also developing a framework to identify and assess climate risk and recommends "state and federal agencies continue to coordinate to identify, prioritize, and procure data necessary for monitoring climate-related financial risks."
Digital assets — or cryptocurrencies — pose risks, too, given the volatility of asset prices. The FSOC recommended in its report that Congress pass legislation to regulate stablecoins — which are stable cryptocurrencies pegged to reserve assets like the dollar or gold — and other crypto assets.
As the calendar flips to 2024, The Real Deal is taking a moment to remember the real estate icons the industry lost last year.
To be sure, their professional legacies will continue to live on through the impacts they made on real estate. They built empires, reshaped cities and skylines, reimagined architecture, redefined luxury and changed dealmaking and how business gets done.
This list has been organized in chronological order.
Nelson Rising, the developer behind prominent projects in California, died of complications related to Alzheimer’s disease on Feb. 9 at 81. Rising spearheaded megaprojects like the U.S. Bank Tower in Downtown Los Angeles. He also helped revitalize Mission Bay in San Francisco and brought the Playa Vista neighborhood to life. Rising Realty Partners is now run by his son, Christopher.
Rafael Viñoly, the Uruguayan architect who shaped skylines around the world, died of an aneurysm on March 2 at 78. His most noteworthy designs in New York included signature projects at 432 Park and 125 Greenwich. He also designed the “Walkie-Talkie” building in London and the Tokyo International Forum.
H. Dale Hemmerdinger, who chaired ATCO Properties and led the Metropolitan Transit Authority during a tumultuous time, died following complications from post-Covid pneumonia on April 20 at 78. ATCO developed, owned and managed millions of square feet in New York during Hemmerdinger’s heyday. He also chaired the MTA from 2007 to 2009, setting records for on-time performance at a time the Great Recession was wreaking havoc locally.
Steven Fisher, a senior partner of New York City’s Fisher Brothers, died following complications from a medical procedure on May 1 at 63. Fisher was an executive at the fourth-generation family firm, overseeing construction and design for acquired properties. For a decade, Fisher led Plaza Construction, helping to morph the Fisher entity into a top competitor in the Big Apple.
John Cushman III, grandson of the Cushman & Wakefield founder, died on May 4 at 82. Cushman contributed to the family legacy by joining the commercial brokerage at 22 years old. After breaking away with Cushman Realty Corporation, Cushman became chairperson of C&W after his entity was acquired by the behemoth in 2001.
Sam Zell, a billionaire real estate investor who made it a habit to snag distressed real estate on the cheap, died on May 18 at 81. Zell founded multifamily real estate investment trust Equity Residential, amassing an empire of apartment buildings, offices and mobile homes. Zell sold Equity Office to Blackstone Group in 2007 for $39 billion, the largest private equity deal ever at the time. He also dabbled in media, buying the Tribune Company newspaper conglomerate for $8.2 billion in 2007.
Jerry Merriman, a Dallas architect who helped shape the city skyline, died following a battle with cancer on May 25 at 74. The founder of Merriman Anderson Architects helped redevelop and preserve dozens of landmarks downtown before calling it a career in 2020. The South Dakota native was behind revitalizations of the Statler Hotel, Lone Star Gas Building, Old Dallas High School, Tower Petroleum Building and the First National Bank Tower.
Adina Azarian, a Hamptons real estate agent, was killed in a plane crash on June 4 at 49. Azarian was founder and president of her own boutique firm, Adina Equities, for nearly 20 years. She ultimately pivoted to the East End, where she most recently served as an associate real estate broker at Keller Williams Points North. Her nanny and young daughter were also killed in the crash.
Milo Kleinberg, a commercial interior designer whose reputation made him the “King of the Garment District,” died on June 19 at 97. Kleinberg founded MKDA, a 75-person architecture and interior design firm based in New York. Kleinberg was known to design showrooms for fashion moguls such as Gloria Vanderbilt, though his firm also crafted retail and office spaces for companies like Citibank and Lufthansa.
Richard Ravitch, who played a critical role in the history of New York and New York City, died on June 25 at 89. Ravitch inherited HRH Construction, which built prominent apartment buildings such as San Remo and the Beresford. He also chaired the Metropolitan Transit Authority and briefly served as lieutenant governor under David Paterson.
Angelo Mozilo, a leader of a top mortgage lender whose reputation was tarnished by the 2008 financial crisis, died on July 16 at 84. Mozilo helped found Countrywide Financial, building it into one of the nation’s largest mortgage lenders. The company had a proclivity to make risky loans, which turned Mozilo into one of the boogeymen of the Great Recession.
Thierry Despont, a renowned French architect, died on Aug. 13 at 75. Despont designed homes for the rich and famous, but also lent a hand in some of the more iconic projects in New York City. He was an associate architect for the restoration of the Statue of Liberty and converted the Battery Maritime Building.
Bartlett Cocke Jr., founder of one of Central Texas’ largest construction firms, died on Sept. 2 at 93. His San Antonio-based firm played a role in constructing prominent landmarks, such as the site of the 1968 World’s Fair. Projects in Austin include renovations of Austin Community College’s Rio Grande Campus and the Linden, a 28-story residential property on the edge of downtown Austin.
Wayne Ratkovich, a prominent developer in Downtown and West Los Angeles, died of complications from an aortic aneurysm on Sept. 24 at 82. The founder of The Ratkovich Company was instrumental in redeveloping Los Angeles’ historic buildings while spearheading developments in Playa Vista and San Pedro. The Bloc in Downtown L.A. and the Google campus in Playa Vista were among his significant developments.
Bill Morgan, who survived the Holocaust and went on to found Houston-based multifamily developer Morgan Group, died on Oct. 15 at 98. Morgan escaped the Stanislawow ghetto in the midst of World War II, posing as a farm laborer under a false identity. He arrived in the United States in 1949 and launched the predecessor to the Morgan Group in 1959; the company is one of the largest multifamily developers in Houston.
Peter Shea, a real estate developer whose family firm built tens of thousands of homes across nearly a dozen states, died after a long battle with Parkinson’s Disease on Oct. 23 at 88. Shea served as vice president of J.F. Shea, the family construction and development company. Besides homes, the firm helped build the Hoover Dam, the Golden Gate Bridge and countless freeways.
Mel Sembler, a real estate developer who doubled as a prominent Republican fundraiser, died of lung cancer on Oct. 31 at 93. Sembler developed more than 350 shopping centers and retail projects across the Southeast. He also helped create a chain of residential drug treatment centers for adolescents, known as Straight Inc. Controversy and legal issues led to the closure of the program in 1993.
Artem Tepler, co-founder of multifamily developer and investor Schon Tepler, died by suicide on Nov. 1 at 41. Tepler, a native of Serbia, made his first real estate investment when he was 23 and went on to form his firm in 2009. The company has completed 22 ground-up multifamily developments across Los Angeles, four custom homes, four mixed-use projects and more.
Zach Muckleroy, the CEO of a Fort Worth construction company, died in a car accident on Nov. 22 at 44; his two children also died in the three-car collision, while Mickleroy’s wife was seriously injured. Muckleroy led Muckleroy & Falls Construction, a firm founded by his father in 1979. He joined the family business in 2009, ascending to CEO three years ago.
Alberto Vadia, who played parts in the village of Wellington — where he was the master developer — Midtown Miami and South Miami died on Nov. 29 at 76. The under-the-radar Cuban-born developer apprenticed under the late Robert Traurig and went on to work closely with his younger son, Midtown Opportunities’ Alex Vadia.
Marc Berson, a key figure in the development of Newark, died following a short illness on Dec. 2 at 79. Berson founded the Fidelco Group in 1981, which has owned and developed commercial assets in several states, including New Jersey. In addition to the firm’s developments, Berson advised on other projects, including Newark’s first major apartment development in four decades and a film studio site set to be operated by Lionsgate.
Jeremy Farrell, an executive of tri-state property owner LeFrak Organization, died suddenly on Dec. 4 at 44. Farrell was an executive with the developer for five years and was previously chief counsel for Jersey City. At LeFrak, Farrell was special counsel and senior managing director of community and government affairs.
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Ajman: The Ajman Department of Finance (DoF) successfully concluded its comprehensive 2023 training course plan with the specialised programme ‘Real Estate Investments and Accounting,’which targeted financial professionals in the emirate’s government sector. The course was designed to provide participants with up-to-date knowledge in real estate investment management and accounting, enhancing their expertise and acquainting them with best practices in this essential field.
Commenting on the organisation of this training course, His Excellency Marwan Al Ali, Director of the Department, highlighted that this initiative reflects the Department’s continuous commitment to delivering specialised training programmes to hone the skills of government employees in the emirate. The training agenda is meticulously developed, with a focus on strategically selected areas that meet the workforce’s needs. The overarching goal is to foster patriotism, develop professional skills, and empower employees to actively contribute to realising the emirate’s vision.
Mohammed Abdul Hamid Khalif, Director of the Policy and Consulting Office, highlighted the DoF’s strategic focus on enhancing skills in real estate investment. Acknowledging the critical role of real estate in Ajman’s economic growth, he stated: “Through this training course, we sought to acquaint government financial personnel with the latest best practices and trends in real estate investment management to positively influence the development of the investment climate, thereby playing a significant role in nurturing a sustainable investment environment in Ajman.”
The training course offered a thorough curriculum, equipping participants with an in-depth knowledge of real estate investment and development across diverse sectors. Attendees acquired insights into strategies for successful real estate investments and learned to apply analytical techniques for identifying prime investment opportunities, securing profitability, and effectively assessing and valuing assets. Additionally, the course addressed structuring investments with business partners in a smart and equitable manner, along with identifying and mitigating investment risks to maximise success rates and prevent financial defaults.
This training initiative underscores the Ajman Department of Finance’s dedication to developing its workforce’s knowledge and skills. With a focus on real estate investment, the Department is positioned to substantially contribute to the emirate’s economic growth and sustainability.
If you’re like most house hunters these days, you started your search online — probably with Zillow or Realtor.com, the two most popular portals that list houses for sale anywhere and everywhere.
Chances are, you overlooked Homes.com entirely. But starting in the new year, the site is planning to provide the two heavyweights a run for their money. And by this time next year, industry consultant Mike DelPrete predicts, chances also are good it will have become the No. 1 starting point for most people.
Homes.com has already shot past Redfin, the third most popular portal, in terms of average unique monthly users, according to DelPrete. And it is within a whisker of unseating Realtor.com — the official site of the National Association of Realtors, the troubled trade group for realty agents and brokers.
But Zillow is still the clear leader, with roughly 225 million average unique monthly users. That figure dwarfs Realtor.com’s 75 million or so. For the record, both Zillow and Redfin are public companies, and though it is affiliated with NAR, Realtor.com is owned by News Corp., a holding company run by media mogul Rupert Murdoch.
Homes.com was a sleepy little enterprise until it was acquired in 2021 by the CoStar Group, a company that made its chops in the commercial real estate sector. (Full disclosure: I provided content on a regular basis for Homes.com before it was acquired by CoStar.)
Now, DelPrete reports that CoStar is about to invest nearly $600 million to boost brand awareness among both consumers and realty professionals.
That “massive investment,” he says, is going to result in a “multibillion-dollar game of financial chicken (that) will certainly shake up the portal landscape and will force competitors to change strategy — if they can — or risk the specter of irrelevancy.”
This brewing behind-the-scenes battle for eyeballs matters to homebuyers and sellers because Homes.com is building a vast library of exclusive content that’s actually good for consumers. Its rich database covers some 20,000 neighborhoods throughout the country, including custom promotional videos created by a team of more than 1,000 employees.
To attract more listings to its site, the portal is targeting agents with the promise that their names, and no one else’s, will be on the houses they are selling. The other sites essentially auction off top billing on listings to any agent who wants to pay a fee, often leaving the listing agent way down on the line of contacts.
Peddling lists to the highest bidder is a major source of irritation among agents, which is why DelPrete says some 97% of all agents don’t play the “buying leads” game. That one key difference is where CoStar is betting it can win the pending war.
Homes.com and Realtor.com are already engaged in a war of words, with CoStar CEO Andy Florance maintaining that Murdoch-owned Realtor.com is taking “cheap shots” at his company. With its “your listing, your lead” philosophy, Florance says, his site is the “most pro-agent portal” in the business. Stay tuned.
Key words to market your home
A picture may paint a thousand words, but words themselves still matter, especially when you are trying to sell your house.
These days, most people start their home search online, hunting with various criteria — the number of bedrooms, perhaps, or a certain community or neighborhood. And yes, once the list of houses pops up, the places that draw the first looks are usually those with the best pictures.
Beyond that, though, certain key words are essential in grabbing a would-be buyer’s attention. And according to a 2022 study of the hottest real estate buzzwords, “beautiful” is out; “spacious” is in.
There’s nothing wrong with telling the world your house is pretty. But “spacious” addresses exactly what most buyers are looking for: a place to spread out. That’s why the words “room,” “space” and “open floor plan” were the most used, per the study of some 730,000 listings on the Point2Homes.com website.
Of course, listings almost always mention the basics like bedrooms, bathrooms, kitchens and flooring. But “garage” and “parking” were the amenities that came up the most often, followed by “patio/porch” and “yard.” The word “storage” popped up frequently, too.
2023 least affordable year to buy a home
As we kiss 2023 goodbye, let the record show that this was the least-affordable year to buy a house in a decade, according to Redfin.
Someone earning the country’s median income — $78,642 — would need to spend 41.4% of that on monthly housing costs to purchase a median-priced house — $408,806 — in 2023. That’s the most since the brokerage firm started keeping records in 2012.
The median monthly payment for principal and interest this year was a record $2,715. So goodbye, 2023. Here’s hoping things turn out better in 2024.
Lew Sichelman has been covering real estate for more than 50 years. He is a regular contributor to numerous shelter magazines and housing and housing-finance industry publications. Readers can contact him at lsichelman@aol.com.
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