The month of August is always a lean month for the real estate market in the US. But last year, the market didn't slow down through the summer and this spring, it exploded through the roof.

However, though the real estate market in the country is ruling lower this summer than in the previous summer, the market this year is stronger as compared to earlier summers. Between July and August this year, August is the slower. Last July, Pardoe ERA, a real estate company, sold $20 million worth of real estate, according to the company. "This July we sold $10 million. That seems like a lot less, but the truth is, we would've killed for $10 million in July up until about two years ago," a company spokesperson said to The Washington Post.

Preliminary figures from the region's multiple listing service, the Metropolitan Regional Information Systems Inc., show a slight downward trend from last year in the first two weeks of August this year, but still it is a strong market. In Northern Virginia, for instance, 811 properties went under contract in the first two weeks of August this year, compared with 842 in 1999 and 732 for the first two weeks of August 1998.

One of the factors contributing to the slower real estate market is that August is traditionally the year's peak vacation month-for buyers, sellers and agents. Another major factor slowing sales is the lack of new houses coming on the market.

A single family house with a garage and four or more bedrooms is listed for sale in Bethesda for up to $700,000 and there are 16 such listings there. Many of the houses on the market now have been for sale for a while and buyers have already passed them on for one reason or another, agents said. And there are very few new listings.

One of the biggest problems coming off the hot spring market, according to agents, and one of the main reasons houses are sitting on the market longer is that sellers have inflated the prices of what their houses are worth and are overpricing them dramatically.

But notwithstanding all that, it's still a seller's market out there, even though there's a bit of a summer slowdown.

Nike runs after women
Women customers are getting renewed focus at Nike. In a tryst to grab more of the $5 billion women's athletic shoe and clothing market, Nike has hived off a new division under the leadership of a Beaverton based company, Clare Hamill, reports The Washington Post.

Clare Hamill will field nearly 1,000 people to develop and market products tailored for athletes and other plain old outdoor wear.

According to the company, the move is aimed at boosting Nike's share of an expanding women's market and beating traditional competition from Adidas and Reebok International while fending off clothing retailers such as Tommy Hilfiger Corp., Gap Inc. and Polo Ralph Lauren Corp.

In the last fiscal, women's clothing, shoes and equipment contributed $1.55 billion in Nike's annual revenue, constituting a nearly 20 per cent share of the global market. Nike has put the women's market as one of its top priorities.

The growth of the women's sports wear market is shaped by the growing interest in the WNBA and women's soccer, along with the popularity of prominent female Olympians. According to Hamill, Nike plans to spend two to three times more on marketing and development in the coming year to expand the range of products for female athletes, while giving fashion conscious consumers more choices. "Many women are up to 6-feet-4 now," Hamill said, "but most companies make products just up to 5-8."

The new thrust came in at a time when Nike's stock took a dip on the New York Stock Exchange largely due to a report that predicted slower US growth in footwear than expected. Nike has less than a third of the women's market in the US in terms of sales, while the company dominates men's athletic footwear with more than half the market (55 per cent). Worldwide, the total market for women's shoes, clothing and equipment stands at slightly less than $5 billion, while the market for men was about $5.5 billion.

Return of the landlords
After riding a high, the real estate market is showing signs of cooling down in the UK as well and this could be the perfect time to move into the buy-to-let market, writes The Daily Mail.

The paper writes that following the slowing down of the market, rental properties are likely to be more affordable for investors. It also says that more people in the country are now wanting to rent a property rather than buy it. Citing the latest figures from the Council of Mortgage Lenders, the paper says that there has been an upturn in the fortunes of the buy-to-let market after a flat first half of the year.

A survey by the Association of Residential Letting Agents (ARLA) has found that there is a shortage of rental properties in some areas, notably London and the South-East, though in other regions, there is a good balance between supply and demand, the paper says. In January this year, a surplus of empty rental properties left many investors out of pocket. With no rental income coming in, the landlords had to cover their property's mortgage payments themselves.

According to ARLA, a boom in house prices can lead to a sense of urgency among people who think they must get on the property ladder. But when the market stabilises, as it is doing now, then people aren't in such a rush and are happy to continue renting. Meanwhile, the increased demand has boosted rental income, with gross yields rising from 8 per cent early in the year to about 9 per cent.

There are also other factors contributing to the increased demand for rental properties, including older first-time buyers, contract working, job mobility, the growth in numbers living alone and the soaring divorce rate. According to Tim Sturley, head of business development at Mortgage Express, "The buy-to-let market is countercyclical to the residential market. When the residential sector is buoyant, investors are not so active. But when the heat goes out of it, there are more bargains available for investors."

The stable house prices also mean that there is little chance for get-rich-quick landlords to make big capital gains on their property over a short period.

However, property experts warn that buy-to-let should be a long-term investment and that investors should think carefully before committing themselves. Property experts predict that demand for rented accommodation will increase significantly in the next 20 years. As a result, rental yields will rise as demand outstrips supply.

But despite the upturn, investors should consider the potential drawbacks as well. It is important to be able to cover the mortgage if there are gaps between tenants. It is also important to check that a property is suitable.