Ten real estate predictions for 2009 is likely to be a year of continuing adjustment to a changing real estate marketplace. Prepare yourself and your business.
• Sellers will continue to face falling home values in the new year because they’ll be competing with banks and builders who are slashing prices to sell off the still-huge inventory of foreclosures and new homes.
• The Obama administration will act on its plan to crack down on abusive lending practices.
• Mortgage holders in danger of losing their homes will receive more assistance from a variety of programs since the Senate’s Joint Economic Committee has predicted two million foreclosures in 2009.
• Banks’ restructuring should bring increasing calm, making loan modifications and short sales easier to obtain. Eventually this will lead to a decrease in the number of bank-owned properties on the market.
• Mortgage applications will continue to receive a comprehensive review, requiring borrowers to provide extensive income and debt documentation. Those with the best credit will get the best rates.
• The foreclosure crisis has created wiser consumers, with a deeper understanding of real estate, mortgages and credit, enabling better decision-making going forward.
• Green is good with increasing numbers of buyers opting for smaller homes that are within walking distance of school and work.
• Buyers and sellers will be more and more tech savvy, relying on tools like video, webcasts, and mobile search. Consumers and practitioners will benefit from being ahead of the curve.
• Prices will be low as will interest rates, creating great buying opportunities, and likely, inspiring reluctant buyers to make their move.
• The recession will end and buyers will regain confidence in the market.
Thursday, December 18, 2008
Thursday, December 11, 2008
MORTGAGE RATES COULD FALL TO 4%
"Government efforts to provide easier credit to consumers and jumpstart flagging home sales could push mortgage rates "well below 4 percent," a federal regulator said Wednesday.James Lockhart, whose agency oversees government-controlled mortgage giants Fannie Mae and Freddie Mac, made the comments at a meeting of Women in Housing & Finance, an industry group. He did not say how long it would take to achieve such a drop and has declined to provide a firm target for mortgage rates.Treasury Department officials have been considering a program to lower mortgage rates, which would not apply to refinanced loans."
In my opinion, they need to make refinancing applicable to all home owners in order to stop foreclosures and shortsales!!! People are becoming jobless and unable to make their usual and customary 30 yr fixed loans as well...
"Government efforts to provide easier credit to consumers and jumpstart flagging home sales could push mortgage rates "well below 4 percent," a federal regulator said Wednesday.James Lockhart, whose agency oversees government-controlled mortgage giants Fannie Mae and Freddie Mac, made the comments at a meeting of Women in Housing & Finance, an industry group. He did not say how long it would take to achieve such a drop and has declined to provide a firm target for mortgage rates.Treasury Department officials have been considering a program to lower mortgage rates, which would not apply to refinanced loans."
In my opinion, they need to make refinancing applicable to all home owners in order to stop foreclosures and shortsales!!! People are becoming jobless and unable to make their usual and customary 30 yr fixed loans as well...
Thursday, November 20, 2008
Buyers Coming Back to FLA!
First-time buyers are stepping forward, overjoyed at the idea of finally being able to afford places of their own. Retirees paying all cash also are getting into the game, yanking their money out of the volatile stock market and putting it back into real estate.
Even investors are returning to the closing table. They’re not flipping properties for quick profits anymore. Instead, they plan to live in the homes or rent them out, at least until the market recovers.
Buyers are purchasing a dozen properties over the next year or so, with plans to rent them as Palm Beach counties homes now sell for less than $295,000, a price not seen here since spring 2004.
It’s no wonder that once-skittish buyers are jumping back into the housing market, creating a sales surge for the first time in four years.“People are starting to say, ‘Wow. How much lower can prices really go?
Buyers have a buy-and-hold strategy.”In July, August and September, sales of existing homes rose each month by as much as 52 percent in Broward and 11 percent in Palm Beach County from a year ago. Condo sales also have been brisk over the same period.
Properties in the $100,000 to $250,000 range appear to be the most popular among buyers, agents say. Despite the recent sales rise, South Florida’s housing market is expected to remain soft into 2009 because of the slow economy and the large supply of homes for sale that will continue to drive down prices.
People view real estate as a safe harbor for their cash.
Real estate has always been a good long-term investment.”
Even investors are returning to the closing table. They’re not flipping properties for quick profits anymore. Instead, they plan to live in the homes or rent them out, at least until the market recovers.
Buyers are purchasing a dozen properties over the next year or so, with plans to rent them as Palm Beach counties homes now sell for less than $295,000, a price not seen here since spring 2004.
It’s no wonder that once-skittish buyers are jumping back into the housing market, creating a sales surge for the first time in four years.“People are starting to say, ‘Wow. How much lower can prices really go?
Buyers have a buy-and-hold strategy.”In July, August and September, sales of existing homes rose each month by as much as 52 percent in Broward and 11 percent in Palm Beach County from a year ago. Condo sales also have been brisk over the same period.
Properties in the $100,000 to $250,000 range appear to be the most popular among buyers, agents say. Despite the recent sales rise, South Florida’s housing market is expected to remain soft into 2009 because of the slow economy and the large supply of homes for sale that will continue to drive down prices.
People view real estate as a safe harbor for their cash.
Real estate has always been a good long-term investment.”
Thursday, November 13, 2008
Nov. 13, 2008 – The housing market may have bust, but many homeowners are still living in a bubble. Despite dismal housing headlines and reports showing falling prices nationwide, owners in some once-hot areas still believe their home is gaining value or at least holding its own. And by hanging onto too-high expectations, sellers are unwittingly keeping the market from finding a bottom. Real estate professionals across the country are reporting difficulty convincing sellers the true market value of their homes.
Most sellers have unrealistic initial listing prices for their homes, plus think their home’s price has increased or stayed the same in the past year.
The median sales price of an existing home dropped 9 percent to $191,600 in September from a year ago, according to the National Association of Realtors.
Most sellers have not acknowledged the severity of the market & have upgraded and remodeled
personalized them, thus creating an extension of themselves.“
This puts Realtors in a precarious position of pricing a house to sell, but not insulting the homeowner by recommending a lower asking price. To a homeowner, a low, but realistic, listing price is “like someone calling your kids ugly,”
Most Realtors agree to list the owner’s asking price as long as they can reevaluate the price in 30 days if the house doesn’t sell.
Homeowners who bought newly built homes at the height of the boom are the most stubborn because they’re trying to get back every penny they spent on customized changes. Sellers are fixated on how much they paid for particular changes, but buyers out there don’t value them.
The market would bottom out sooner if sellers weren’t so stubborn and didn’t keep prices artificially high.
Homeowners can’t stand taking a loss on their properties, yet keeping their home on the market at an inflated price could wind up costing them more. Homeowners need to look at the larger financial picture & determine how much there is to gain or lose by keeping a home on the sales block longer.
Real estate agents press this point on their clients, saying no one wants to buy the most expensive house on the block. After the first reduction in listing price, a psychological barrier, subsequent cuts come easier.
Like any type of loss, there’s a grieving process. First, they’re in denial, then angry, then depressed and hopeless. But then they eventually move on if they want to sell it.
Most sellers have unrealistic initial listing prices for their homes, plus think their home’s price has increased or stayed the same in the past year.
The median sales price of an existing home dropped 9 percent to $191,600 in September from a year ago, according to the National Association of Realtors.
Most sellers have not acknowledged the severity of the market & have upgraded and remodeled
personalized them, thus creating an extension of themselves.“
This puts Realtors in a precarious position of pricing a house to sell, but not insulting the homeowner by recommending a lower asking price. To a homeowner, a low, but realistic, listing price is “like someone calling your kids ugly,”
Most Realtors agree to list the owner’s asking price as long as they can reevaluate the price in 30 days if the house doesn’t sell.
Homeowners who bought newly built homes at the height of the boom are the most stubborn because they’re trying to get back every penny they spent on customized changes. Sellers are fixated on how much they paid for particular changes, but buyers out there don’t value them.
The market would bottom out sooner if sellers weren’t so stubborn and didn’t keep prices artificially high.
Homeowners can’t stand taking a loss on their properties, yet keeping their home on the market at an inflated price could wind up costing them more. Homeowners need to look at the larger financial picture & determine how much there is to gain or lose by keeping a home on the sales block longer.
Real estate agents press this point on their clients, saying no one wants to buy the most expensive house on the block. After the first reduction in listing price, a psychological barrier, subsequent cuts come easier.
Like any type of loss, there’s a grieving process. First, they’re in denial, then angry, then depressed and hopeless. But then they eventually move on if they want to sell it.
Monday, October 13, 2008
REAL ESTATE MARKET GONE SOUR
Fear & panic dominates today's economy. This fear has caused stagnation in everything from the use of commercial paper that fund day to day activities of businesses to interbank lending both domestically and internationally.
With respect to the real estate market many investors purchased one or more properties as speculative or long-term investments over the past several years. Those who have been unable to sell their properties are experiencing staggering losses as well as a tremendous drain in dispensable income.
On the other hand, there are many investors who did not partake in the buying frenzy of 2002 - 2006 and as a result they do have cash. These investors along with many others are in the market ready and able to acquire property as either a primary residence or investment. Simply stated, NOW is the time to BUY!
Current real estate prices in many states are dropping to pre-levels that existed years ago. In addition, these prices may even continue to decline further into the later half of 2009 or early 2010. Finally we are entering a viable period of time to purchase quality properties at more than affordable prices. My advice is to take advantage of this opportunity NOW before the rest of the herd picks up the scent!
With respect to the real estate market many investors purchased one or more properties as speculative or long-term investments over the past several years. Those who have been unable to sell their properties are experiencing staggering losses as well as a tremendous drain in dispensable income.
On the other hand, there are many investors who did not partake in the buying frenzy of 2002 - 2006 and as a result they do have cash. These investors along with many others are in the market ready and able to acquire property as either a primary residence or investment. Simply stated, NOW is the time to BUY!
Current real estate prices in many states are dropping to pre-levels that existed years ago. In addition, these prices may even continue to decline further into the later half of 2009 or early 2010. Finally we are entering a viable period of time to purchase quality properties at more than affordable prices. My advice is to take advantage of this opportunity NOW before the rest of the herd picks up the scent!
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