tag:blogger.com,1999:blog-6732133753331493072024-03-13T21:33:28.909-07:00The Realty BuzzPropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.comBlogger87125tag:blogger.com,1999:blog-673213375333149307.post-59607912275596658962023-02-17T11:53:00.001-08:002023-02-17T11:53:39.271-08:00Despite a Cooling Real Estate Market, Billionaire Grant Cardone Predicts Investors Will Come to the Rescue<p><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqNDaumLJxj54yM6UbrYKOgqKhSCEO0vdYhQ72rmSmwRf-2mUtf4lOtC8WMx1w8ocjLQYWcEcLa8TE94J4CAMtAH2x774gqLlZy_IEzeJX7i71jKFYs7wHuarFbmJwPUxuEu_WuLQbJoRTlwnw2UlwpnuZeV3_Ib2Oxavz0tXDpXqLiVsfyNUUJnUk/s640/real%20estate%20investor.webp" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Despite a Cooling Real Estate Market, Billionaire Grant Cardone Predicts Investors Will Come to the Rescue" border="0" data-original-height="428" data-original-width="640" height="268" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqNDaumLJxj54yM6UbrYKOgqKhSCEO0vdYhQ72rmSmwRf-2mUtf4lOtC8WMx1w8ocjLQYWcEcLa8TE94J4CAMtAH2x774gqLlZy_IEzeJX7i71jKFYs7wHuarFbmJwPUxuEu_WuLQbJoRTlwnw2UlwpnuZeV3_Ib2Oxavz0tXDpXqLiVsfyNUUJnUk/w400-h268/real%20estate%20investor.webp" title="Despite a Cooling Real Estate Market, Billionaire Grant Cardone Predicts Investors Will Come to the Rescue" width="400" /></a></td></tr><tr><td class="tr-caption">Billionaire Grant Cardone Predicts Investors Will Come to the Rescue</td></tr></tbody></table><br />The real estate market is a key indicator of the health of the economy, and when it's in a slump, it can have a domino effect on other industries. The current market conditions have left many homeowners, buyers, and investors feeling uncertain and hesitant.</p><p>Buyers are looking for deals, not wanting to pay full price, and sellers have been, thus far, reluctant in taking less for their home than what they "feel" it's worth - especially after the big runup most local US housing markets saw during the pandemic.</p><h3 style="text-align: left;">Housing prices sticky on the way down</h3><p>There's always an emotional component to buying or selling one's home, so prices are usually "sticky" on the way down. It's a hard pill for most to swallow that you're going to get less for your home today than yesterday, so the natural tendency is to wait "in hopes" that the "perfect" offer comes in.</p><p>In an appreciating market, procrastination can be your friend. In a depreciating housing market, price reductions may not even keep up with or get you out in front of falling prices. There's always a lag between what's happening on the ground today and when the data is released, so we must use data, not our emotions, to project out future possibilities and probabilities to better guide our decisions.</p><h3 style="text-align: left;">Housing inventory supply and demand stalemate </h3><p>The emotional dynamic is even more in play today because <a href="https://realty-buzz.blogspot.com/2023/02/the-interplay-of-supply-and-demand.html">housing inventory levels remain historically low which is strongly overshadowing</a> the increasing headwinds in the residential housing market. In particular, affordability continues to erode as the Fed remains steadfast in raising interest rates to fulfil their promise to do whatever it takes to curb inflation.</p><p>Watch what they do as it will clue us in and significantly impact the direction of the market. As long as they remain restrictive in their policies, that will force a continued cooling of the housing market (again, with a lag effect when it comes to their policies actually impacting home prices).</p><p>Until then, there's a stalemate unique to this housing market that we didn't see back in 2008. Since many potential sellers locked in 2-4% mortgage interest rates over the past few years and their home is worth substantially more today, they don't have to sell. And, in most cases, they're not as they'd have to buy less of a home (due to the price appreciation over the last few years) and do so with mortgage interest rates now over 6% (resulting in a significantly higher monthly payment).</p><p>Ultimately, the erosion in price will come when this stalemate breaks. For now, the bulk of the housing market is made up from "transactions of necessity" (people having to relocate for work, family circumstances, etc.), so most local housing markets are seeing falling prices, but they aren't dropping as quickly or as much as some expected.</p><h3 style="text-align: left;">What will the spring housing market bring us?</h3><p>In fact, in many local housing markets, there's been an uptick in demand this early spring, but there hasn't been a flood of homes hitting the market. With spring approaching, how this plays out will also give us a better feel for what's to come.</p><p>Will we see the typical seasonal trend of an increasing number of homes hitting the market this spring? And, what will happen with buyer demand if interest rates keep rising? Even though buyer demand has dried up considerably, the right home, in the right market, is still selling with multiple offers - the Sacramento real estate market is one such <a href="https://twitter.com/SacAppraiser/status/1626372735135014912?s=20">example highlighted by Ryan Lundquist</a> a Sacramento appraiser and a great follow on Twitter - <a href="https://twitter.com/SacAppraiser" rel="nofollow">@SacAppraiser</a>).</p><h3 style="text-align: left;">Inventory levels are key to 2023 home prices</h3><p>Again, the key to 2023 home prices is seeing what unfolds with inventory levels and buyer demand. As it sits today, these historically low inventory levels are keeping the housing market propped up to a large extent, so it will take time, but billionaire investor and entrepreneur Grant Cardone believes that investors will play a vital role in reviving this slowing real estate market when that time comes.</p><blockquote>Economists have been calling for a housing crash for several months. Some even predicted that home prices would fall by as much as 30% in 2023. While these claims are understandable considering that rising mortgage rates have priced many would-be buyers out of the market, it appears that a different scenario is beginning to play out.<br /><br />Best-selling author and real estate fund manager Grant Cardone agrees that the housing market is in trouble, but points out that investors will create enough demand to keep the market from crashing.<br /><br />“Banks don’t trust borrowers, and those they do trust will have to pay. This will move homeowners to the sidelines and slowly reduce home prices,” Cardone said. “Investors will step in to pick up single-family homes at lower prices with less competition. That being said, there will be no housing crash! Investors, like myself, will save the day and step in to buy the homes, put renters in place and enjoy them for the cash flow, not the kitchens and cabinets.” - <a href="https://finance.yahoo.com/news/real-estate-market-freezer-billionaire-152523976.html" rel="nofollow">Yahoo! Finance</a></blockquote>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-75414589897714299602023-02-16T13:21:00.004-08:002023-02-16T13:38:48.666-08:00The Interplay of Supply and Demand: Understanding San Francisco's High Housing Prices<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLkU3IE82HIloDOwGhChS_k7FX1OIMuIW_xqZHMvMLvZ2TeoDVAf8BRISkp5U0dxgEg3og-z_qVyGpMTr4wh3bCOjQM2z7FAzpLe3GYnOOgvXTlE6qT3Q1y7EEhx-7_H0D0oKTu5OcOEEN1XbzbV6Rx7H6M75GWY0xAMXW6oNKA4q0cnrixqNr92gA/s650/Screenshot%202023-02-16%20at%2012.48.23%20PM.png" style="margin-left: auto; margin-right: auto;"><img alt="The Interplay of Supply and Demand: Understanding San Francisco's High Housing Prices" border="0" data-original-height="644" data-original-width="650" height="396" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLkU3IE82HIloDOwGhChS_k7FX1OIMuIW_xqZHMvMLvZ2TeoDVAf8BRISkp5U0dxgEg3og-z_qVyGpMTr4wh3bCOjQM2z7FAzpLe3GYnOOgvXTlE6qT3Q1y7EEhx-7_H0D0oKTu5OcOEEN1XbzbV6Rx7H6M75GWY0xAMXW6oNKA4q0cnrixqNr92gA/w400-h396/Screenshot%202023-02-16%20at%2012.48.23%20PM.png" title="The Interplay of Supply and Demand: Understanding San Francisco's High Housing Prices" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">San Francisco Bay Area Sky High Real Estate Prices</td></tr></tbody></table><p></p>San Francisco has long been known for its high cost of living, especially when it comes to housing. In recent years, the city's housing market has become even more expensive, with prices continuing to rise. This can largely be attributed to the interplay of supply and demand in the city's housing market.<br /><br />Supply and demand are two key factors that impact the price of housing in San Francisco. When demand for housing in the city is high and supply is low, prices tend to go up. Conversely, when demand is low and supply is high, prices tend to go down. This is the basic economics of the housing market.<br /><br />There are a few reasons why the supply of housing in San Francisco has not kept up with demand. One major factor is the city's restrictive zoning laws and regulations, which make it difficult to build new housing. In addition, the cost of construction in San Francisco is notoriously high, which further limits the amount of new housing that is built.<br /><br />Another factor contributing to the high cost of housing in San Francisco is the city's strong job market. Many tech companies are based in the Bay Area, which has led to an influx of highly paid workers who are willing to pay top dollar for housing. This increased demand for housing has put further pressure on prices.<br /><br />Additionally, San Francisco has limited geographic space, which means that the supply of available land for new housing is limited. This has led to increased competition for existing housing units, which further drives up prices.<br /><br />Overall, the high cost of housing in San Francisco is largely driven by the interplay of supply and demand in the city's housing market. While there are a variety of factors that impact the supply of housing in the city, the limited supply of land, restrictive zoning laws, and high construction costs are major contributors. Meanwhile, the city's strong job market and high demand for housing among highly paid workers also drive up prices. As a result, housing in San Francisco remains one of the most expensive in the country.<div><br /></div><div>Even with people leaving the San Francisco Bay area, prices remain elevated because of the huge supply and demand imbalance:</div><blockquote><div><p style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0); border: 0px; box-sizing: inherit; color: #2e2e2e; font-family: Lato, sans-serif; font-size: 18px; font-stretch: inherit; font-variant-east-asian: inherit; font-variant-numeric: inherit; line-height: inherit; margin: 0px 0px 1.5em; padding: 0px; vertical-align: baseline;">"More than 90,000 people left Silicon Valley during the first two years of the COVID-19 pandemic, according to an annual report that found a slowing “exodus” has reverted the tech center’s population to 2013 levels.</p><div class="paywall" style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0); border: 0px; box-sizing: inherit; color: #2e2e2e; font-family: Lato, sans-serif; font-size: 18px; font-stretch: inherit; font-variant-east-asian: inherit; font-variant-numeric: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;"><p style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0); border: 0px; box-sizing: inherit; font: inherit; margin: 0px 0px 1.5em; padding: 0px; vertical-align: baseline;">A net total of 43,800 residents moved out of the region from July 2021 through June 2022, the fourth consecutive year that the region’s overall population has shrunk and the second year that net domestic migration topped 40,000, according to the Silicon Valley Index. The annual look at the health of the region found housing prices and job numbers continuing to rise well into last year, even as the number of people in the region returned to levels not seen since Google Glass still had a chance to be the next big thing." - <a href="https://www.marketwatch.com/story/the-silicon-valley-exodus-neared-record-dot-com-bust-levels-last-year-97724e0f" rel="nofollow">MarketWatch</a></p></div></div></blockquote><p>To expand on these dynamics even further, <a href="https://twitter.com/mikesimonsen" rel="nofollow">@Mikesimonsen</a>, Co-founder CEO Altos Research, has a great <a href="https://twitter.com/mikesimonsen/status/1626269597409382400?s=20" rel="nofollow">Twitter thread</a> on how home prices can "... still be so unaffordable when the population is declining?"</p><p>In short, easy as Mike notes, "The median home can (forever?) remain unaffordable to the median income in the Bay Area because only the richest 2000 can buy."</p><p>Again, there are countless variables at play in any local housing market, but at the end of the day supply and demand rules the roost and strongly overshadows many extenuating circumstances.</p><p>When you have so many people chasing such a limited supply, there's always a group doing well (good economy or bad) to create a market that wouldn't otherwise exist if there wasn't such a large housing supply / demand imbalance.</p><p>Don't lose sight of this otherwise your perspective will be skewed towards what makes sense comparatively even though the same dynamics don't exist across all housing markets!</p>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-4444727360974119192023-02-05T10:35:00.001-08:002023-02-05T10:35:16.049-08:00Unlocking the Secrets of Success in Real Estate Investing: Insights from Brandon TurnerReal estate investing is a popular choice for many people looking to build wealth and secure their financial future. However, despite its potential rewards, the majority of people who venture into this field fail to achieve their goals. Why is this the case? What are the keys to success in real estate investing? In this blog post, we delve into these questions and more as we explore the video "Why Most Won’t Succeed in Real Estate Investing with Brandon Turner."<p style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/NcMvD6-aIsM" title="YouTube video player" width="560"></iframe></p><h3 style="text-align: left;">Who is Brandon Turner?</h3><div>Brandon Turner is a well-known real estate investor, author, and educator. He is a co-host of the BiggerPockets podcast, a popular resource for real estate investors, and has written several books on real estate investing. In the video, Brandon provides valuable insights and advice on why most people fail in real estate investing and how to increase the chances of success in this field.</div><h3 style="text-align: left;"><br /></h3><h3 style="text-align: left;">Real Estate Education and Preparation</h3><div>One of the key takeaways from the video is the importance of education and preparation. According to Brandon, many people jump into real estate investing without fully understanding the risks and rewards involved. To succeed in this field, it is essential to educate yourself on the various investment strategies, as well as the legal and financial aspects of real estate investing. It is also important to have a clear understanding of your goals and what you hope to achieve through your investments.</div><div><br /></div><div><h3 style="text-align: left;">Discipline and Perseverance to Become a Real Estate Pro</h3></div><div>Another important factor that Brandon highlights in the video is the need for discipline and perseverance. Real estate investing is not a get-rich-quick scheme, and success in this field often requires hard work, patience, and persistence. It is important to have a long-term outlook and to be willing to weather the ups and downs of the market. </div><div><h3 style="text-align: left;"><br /></h3><h3 style="text-align: left;">The Magic Happens When You Put in the Hard Work</h3><div>This is key. It requires work. Deals don't fall on your lap while you're sitting on the couch hoping for something to role your way. Most people are drawn in because of the potential "rags to riches", but don't realize real estate doesn't turn into a "money tree" without tilling the ground, planting the seeds, and nurturing the seeds until your trees mature enough to bare fruit. Again, this doesn't happen overnight. Once most realize this, they move on and lose any shot at living up to their potential. </div><div><h3 style="text-align: left;"><br /></h3><h3 style="text-align: left;">Networking and Building Relationships to Build Your Real Estate Business</h3></div><div>In addition to education and perseverance, Brandon also stresses the importance of networking and building relationships in the real estate industry. Having a solid network of professionals, such as real estate agents, mortgage brokers, and contractors, can help you make informed decisions and find the best investment opportunities.</div><div><h3 style="text-align: left;"><br /></h3><h3 style="text-align: left;">Take Action</h3></div><div>Finally, Brandon emphasizes the importance of taking action. No amount of knowledge or preparation will lead to success if you don’t take the necessary steps to put your plans into action. Whether it's finding your first investment property or expanding your portfolio, it is essential to take calculated risks and be willing to put in the effort required to succeed.</div><div><br />This BiggerPockets video, "Why Most Won’t Succeed in Real Estate Investing with Brandon Turner" provides valuable insights into the keys to success in real estate investing. From education and preparation to discipline and perseverance, to networking and taking action, Brandon provides a comprehensive overview of what it takes to succeed in this challenging but rewarding field.</div></div><div><br /></div><div>Remember, none of this becomes a reality without taking what you've learned and putting it to use. Again, the magic happens in the work. Doing the small things and building the good habits. Doing this consistently is no secret. The secret is most won't play the long game to achieve their goals, but I trust that won't be you!</div>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-25015498001116008772010-10-26T07:27:00.000-07:002010-10-26T07:49:32.517-07:00S&P Case-Shiller Housing Price Index - October 26, 2010 ReleaseS&P/Case-Shiller Home Price Indices - Prices stable today and headed lower tomorrow was the story of the last <a href="http://realty-buzz.blogspot.com/2010/09/s-case-shiller-housing-price-index.html" title="S&P / Case-Shiller Home Price Indices">housing report</a>. Today, as expected by most analysts, the report points to housing prices heading lower again.<br />
<blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">"A disappointing report. Home prices broadly declined in August. Seventeen of the 20 cities and both Composites saw a weakening in year-over-year figures, as compared to July, indicating that the housing market continues to bounce along the recent lows," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. Over the last four months both the 10- and 20-City Composites show slowing growth, after sustaining consistent gains since their April 2009 troughs.<br />
<br />
"The month-over-month growth rates tell the same story. Fifteen of the 20 MSAs and the two Composites saw a decline in the month of August as compared to July levels. The 10- and 20-City Composites fell 0.1% and 0.2%, respectively. Indeed, the housing market appears to have stabilized at new lows. At this time, it does not seem that any of the markets are hanging on to the temporary momentum caused by the homebuyers' tax credits."</blockquote><br />
<div style="text-align: center;"></div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: center;"><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;">(<b>S&P/Case-Shiller Home Price Indices - </b></div></div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: center;"><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;"><b>Click on chart for larger image in same window</b>)</div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjG9hFjshSRKns1103d2Y4d6pzU1O7AS-lCQigmGhhQMZUW9dKFDrPeavJTh3MPJ13mvSsUcC5e-MUm9nIXaJBlyMWY-gIafudeIyXTY31womARjQ2UlMm_8iwPQ2tCs1h_K8x8FrC6Q0U/s1600/s+&+p+case+shiller+home+prices+august+report.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjG9hFjshSRKns1103d2Y4d6pzU1O7AS-lCQigmGhhQMZUW9dKFDrPeavJTh3MPJ13mvSsUcC5e-MUm9nIXaJBlyMWY-gIafudeIyXTY31womARjQ2UlMm_8iwPQ2tCs1h_K8x8FrC6Q0U/s320/s+&+p+case+shiller+home+prices+august+report.gif" title="S&P / Case-Shiller Home Price Indices" width="320" /></a></div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;"><br />
</div></div><br />
In consideration of current economic conditions and recent housing data that continues to point towards increasing inventory levels in many locales, the downward pricing trend highlighted in this report should continue to be reflected in the next S&P / Case-Shiller release.<br />
<br />
Actual S&P/Case-Shiller Housing Price Index PDF report: <a href="http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline%3B+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1245231571069&blobheadervalue3=abinary%3B+charset%3DUTF-8&blobnocache=true" title="S&P / Case-Shiller Home Price Index">"Home Prices Increases Slow Down in August According to the S&P/Case-Shiller Home Price Indices".</a><br />
<br />
More to come ...PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-3887760445176407802010-10-25T12:45:00.000-07:002010-10-25T12:47:44.476-07:00CoreLogic: Home Price Index for August 2010<div style="text-align: left;">According to the <a href="http://www.corelogic.com/uploadedFiles/Pages/About_Us/ResearchTrends/10-25-10_CL_August%20HPI%20ReportFINAL.PDF" title="CoreLogic Housing Price Index for August 2010">CoreLogic Home Price Index released</a> reflecting August 2010 data, home prices declined 1.5% year over year nationally and values appear to be be trending lower:</div><blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">"Price declines are geographically expanding as 78 out of the largest 100 metropolitan areas are experiencing declines, up from 58 just one month ago” said Mark Fleming, chief economist for CoreLogic."</blockquote><br />
<div style="text-align: center;"></div><div style="text-align: center;"><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;">12 Month House Price Index Change: Single-family combined series</div></div><div style="text-align: center;"><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;">(Click on chart for larger image in same window)</div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6rOslioZYrPuDHjbqhWn_53GWhYvnaKRezLK5IdcAPPJHbwFo8Ki6Ym_eae88W64uAYXek-9zbqnfz2V2cyman7tOisic39OC0prP8T-xQi080nEBwEa7Mtpv4B8mhW_umjF64RxnT-k/s1600/CoreLogic-housing-price-index-august-2010-combined.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="247" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6rOslioZYrPuDHjbqhWn_53GWhYvnaKRezLK5IdcAPPJHbwFo8Ki6Ym_eae88W64uAYXek-9zbqnfz2V2cyman7tOisic39OC0prP8T-xQi080nEBwEa7Mtpv4B8mhW_umjF64RxnT-k/s320/CoreLogic-housing-price-index-august-2010-combined.gif" title="CoreLogic Home Price Index - August 2010 Combined Sales" width="320" /></a></div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;"><br />
</div></div><br />
<div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: center;"><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;">12 Month House Price Index Change: Single-family combined excluding distressed series.</div></div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: center;"><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;">(Click on chart for larger image in same window.)</div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6zCMibI4OxQQBOgcIh9TyKXSocyudlUHqxv5lBUPS-McbniZenP-X6WOXorP_ahDueUDWRlnq8ld4vFJd0UDSFVM0q0X-wTwRzEdeiOfi7QMoGfxZJtPdkPiQNzMVkTueRX78LRejZxw/s1600/CoreLogic-housing-price-index-august-2010-excluding-distressed.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="250" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6zCMibI4OxQQBOgcIh9TyKXSocyudlUHqxv5lBUPS-McbniZenP-X6WOXorP_ahDueUDWRlnq8ld4vFJd0UDSFVM0q0X-wTwRzEdeiOfi7QMoGfxZJtPdkPiQNzMVkTueRX78LRejZxw/s320/CoreLogic-housing-price-index-august-2010-excluding-distressed.gif" title="CoreLogic Home Price Index - August 2010 Sales Excluding Distressed Property" width="320" /></a></div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;"><br />
</div></div><br />
From a national perspective, CoreLogic's report continues to paint a grim housing picture and the trending lower numbers point to more housing woes ahead.PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-32113340087729220822010-10-23T09:28:00.000-07:002010-10-23T09:32:11.641-07:00Will the Real Owner Please Stand Up?It's a three ring foreclosure circus. It would actually be funny if this really didn't impact and negatively affect real people.<br />
<br />
When will these institutions every be held accountable for their criminal practices? What a mess!<br />
<br />
<center><br />
<object height="268" id="otvPlayer" width="400"><param name="movie" value="http://cdn.abclocal.go.com/static/flash/embeddedPlayer/swf/otvEmLoader.swf?version=&station=kabc§ion=&mediaId=7716215&cdnRoot=http://cdn.abclocal.go.com&webRoot=http://abclocal.go.com&configPath=/util/&site=" ></param><param name="allowScriptAccess" value="always"></param><param name="allowNetworking" value="all"></param><param name="allowFullScreen" value="true"></param><embed id="otvPlayer" width="400" height="268" type="application/x-shockwave-flash" allowscriptaccess="always" allownetworking="all" allowfullscreen="true" src="http://cdn.abclocal.go.com/static/flash/embeddedPlayer/swf/otvEmLoader.swf?version=&station=kabc§ion=&mediaId=7716215&cdnRoot=http://cdn.abclocal.go.com&webRoot=http://abclocal.go.com&configPath=/util/&site="></embed></object><br />
</center>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-74253095042015586002010-10-19T08:11:00.000-07:002010-10-19T08:12:34.245-07:00The Mortgage MessIt's definitely good politics to claim that you have to protect the private sector, lumping small business owners who truly compete in a free market with the uber / multinational corporations that successfully lobby our congressmen and women on a daily basis to write the laws that create the market they want.<br />
<br />
Many good arguments / points made in this video regarding the banks, the mortgage mess, and the housing market, but minutes 6:00 - 7:00 is definitely a good listen.<br />
<br />
As Barry Ritholtz noted towards the end of the video, "we have the best Senate money can buy!"<br />
<br />
Disgusting, but quite clearly true if you remotely pay attention to how things really operate!<br />
<br />
<center><br />
<object classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=9,0,0,0" height="380" id="cnbcplayer" width="400"> <param name="type" value="application/x-shockwave-flash"/><param name="allowfullscreen" value="true"/><param name="allowscriptaccess" value="always"/><param name="quality" value="best"/><param name="scale" value="noscale" /><param name="wmode" value="transparent"/><param name="bgcolor" value="#000000"/><param name="salign" value="lt"/><param name="movie" value="http://plus.cnbc.com/rssvideosearch/action/player/id/1618726207/code/cnbcplayershare"/><embed name="cnbcplayer" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer" allowfullscreen="true" allowscriptaccess="always" bgcolor="#000000" height="380" width="400" quality="best" wmode="transparent" scale="noscale" salign="lt" src="http://plus.cnbc.com/rssvideosearch/action/player/id/1618726207/code/cnbcplayershare" type="application/x-shockwave-flash" /></embed> </object><br />
</center>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-29317122331533763892010-09-30T09:01:00.000-07:002010-09-30T09:09:43.259-07:00Do Housing Fundamentals Really Matter?<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6AOf8gwJdofpEvVs-jwpnnvpNBIT_7RRgh4Bp9J9wvXXm0t2YH05IHHFhqtHpzKP0OtRd6H9HNWmt1izftxzDsqn6VJUDZt2vtu4h-uoHoa7z186-zUJw9VCDO7AVnCGB8XlGFUWY-Ms/s1600/housing+confusion.gif" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6AOf8gwJdofpEvVs-jwpnnvpNBIT_7RRgh4Bp9J9wvXXm0t2YH05IHHFhqtHpzKP0OtRd6H9HNWmt1izftxzDsqn6VJUDZt2vtu4h-uoHoa7z186-zUJw9VCDO7AVnCGB8XlGFUWY-Ms/s200/housing+confusion.gif" title="Housing Confusion" width="165" /></a>If you're like me, you spend countless hours pouring through data trying to make sense of the underlying economic fundamentals to understand what's happening today and what the data means for tomorrow. In short, we're always looking for the trend to clue us into what we hope to be sound investment decisions.<br />
<br />
Needless to say, rolling out of bed and waiving your finger in the air to determine which way the wind is blowing is not going to be a consistently successful approach. However, at a certain point, we can outsmart ourselves by basing our decisions solely on what the underlying fundamentals are telling us.<br />
<br />
How many home buyers are basing their decisions on the latest <a href="http://realty-buzz.blogspot.com/2010/09/s-case-shiller-housing-price-index.html" title="S&P/Case-Shiller Housing Report">S&P/Case-Shiller housing price index</a>? Gee, let's hold off on making this purchase since the S&P/Case-Shiller index is a lagging housing indicator. Looks like Diesel consumption picked up for the month of ..... More <a href="http://www.calculatedriskblog.com/2010/09/bernanke-and-qe2.html" title="Quantative Easing">QE2 is coming in Q4</a>? Temporary Census Bureau jobs are beginning to clear the system and will have less of an impact on the employment picture moving forward. You get the point.<br />
<br />
Spending time to get a grasp on the fundamentals definitely helps to give clarity to our decisions, but what good are our decisions if the overwhelming majority isn't using the same data and is making decisions based on a completely different perspective? Isn't this different perspective just as important (if not more important) to understand and to take into consideration?<br />
<br />
Courtesy of Jim the Realtor, check out the video below regarding an auction of a lot in Southern California. Jim notes that the data points to a certain number regarding the sale of the lot, but the actual final sales price defies the data. In fact, pushing forward, the sale (if it goes through) will greatly skew the data / comps for the next potential buyer in the same neighborhood.<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><object height="385" width="480"><param name="movie" value="http://www.youtube.com/v/vzMJnNRmYX4?fs=1&hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/vzMJnNRmYX4?fs=1&hl=en_US" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object></div><br />
Human nature and the countless intangibles drove this sale while the data floated out the window ... If you think this is an isolated incident or this only happens in high-end micro housing markets, think again!PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-72971706033446851702010-09-28T08:44:00.000-07:002010-09-28T20:29:30.800-07:00S&P Case-Shiller Housing Price Index - September 28, 2010 ReleaseS&P/Case-Shiller Home Price Indices - Prices stable today and headed lower tomorrow?<br />
<blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;"><b>New York, September 28, 2010</b> – Data through July 2010, released today by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show that the annual growth rates in 16 of the 20 MSAs and the 10- and 20-City Composites slowed in July compared to June 2010. The 10-City Composite is up 4.1% and the 20-City Composite is up 3.2% from where they were in July 2009. For June they were reported as +5.0% and +4.2%, respectively. Although home prices increased in most markets in July versus June, 15 MSAs and both Composites saw these monthly rates moderate in July.</blockquote><div style="text-align: center;"></div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: center;">(<b>S&P/Case-Shiller Home Price Indices - </b></div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: center;"><b>Click on chart for larger image in same window</b>)</div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUe2hkV8S-Mj3gFjggOcj6oPh1aq4YTfZ-R0ihMePxQwXwmANkZzwgd8RBKqaihVURhLBzJEnNGsLRPekq9Qf2MwMcS1v9EO3ftQ5weMRibfyorzus3hWQ0hAeJJcNODSV3bWIN7Ld7OM/s1600/s+&+p+case+shiller+home+price+index+September+2010+report.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="243" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUe2hkV8S-Mj3gFjggOcj6oPh1aq4YTfZ-R0ihMePxQwXwmANkZzwgd8RBKqaihVURhLBzJEnNGsLRPekq9Qf2MwMcS1v9EO3ftQ5weMRibfyorzus3hWQ0hAeJJcNODSV3bWIN7Ld7OM/s320/s+&+p+case+shiller+home+price+index+September+2010+report.gif" title="S&P/Case-Shiller Home Price Indices" width="320" /></a></div><br />
The general consensus seems to be that the next S&P/Case-Shiller report will begin, on balance, to show declining numbers.<br />
<br />
I agree ...<br />
<br />
The September 28, 2010 S&P/Case Shiller report represents data from May, June, and July. The next report will highlight data from June, July, and August. Couple extremely weak <a href="http://www.businessweek.com/news/2010-08-25/sales-of-u-s-new-homes-dropped-to-record-low-in-july.html" title="New Home Sales in July 2010">new home sales</a> and <a href="http://online.wsj.com/article/SB10001424052748703447004575449352676306326.html" title="Existing Home Sales in July 2010">existing home sales</a> in July with typical seasonally slower sales in August, and we have the right recipe for further housing price declines as noted by the S&P/Case-Shiller housing price index. Furthermore, recent economic data doesn't give us any reason to believe that the future housing price numbers will be bolstered by an unexpected positive economic influence. In fact, there will still be marginal support from the federal housing tax credit since the closing date to receive the credit on a home purchased during the incentive period has been pushed out to September 30, 2010.<br />
<br />
The chart below will give you a look at what happened in your neighborhood.<br />
<br />
<div style="text-align: center;">(<b>S&P/Case-Shiller Home Prices -</b></div><div style="text-align: center;"><b>Click on chart for larger image in same window</b>)</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiIjLgYURnUoDo-NoTol6dshGvVob8uALMFpX_CHZdDaggOXa3tuuZo3oEf5LSVg3Ehr6eSf3nnwgpp6Ob21d3VSKgAVmDg-ZlwbgfHFwYxJmSpB3QfXHT7LVbRiZNA0zzTo6uL9Z19ys/s1600/s+&+p+case+shiller+home+prices+September+2010+report.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="210" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiIjLgYURnUoDo-NoTol6dshGvVob8uALMFpX_CHZdDaggOXa3tuuZo3oEf5LSVg3Ehr6eSf3nnwgpp6Ob21d3VSKgAVmDg-ZlwbgfHFwYxJmSpB3QfXHT7LVbRiZNA0zzTo6uL9Z19ys/s320/s+&+p+case+shiller+home+prices+September+2010+report.gif" title="S&P/Case Shiller Home Prices" width="320" /></a></div><br />
Actual S&P/Case-Shiller Housing Price Index PDF: - <a href="http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline;+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application/pdf&blobkey=id&blobheadername1=content-type&blobwhere=1245227028137&blobheadervalue3=abinary;+charset%3DUTF-8&blobnocache=true" title="S&P Case-Shiller Housing Price Index">Home Prices Remain Stable Around Recent Lows According to the S&P/Case-Shiller Home Price Indices</a>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-42269490575007872812010-09-23T16:13:00.000-07:002010-09-23T17:44:43.803-07:00Housing Bubble Rant - My Two CentsDuring my usual day to day scanning of real estate and economic news, I came across this opinion article over at Inman news, <a href="http://www.inman.com/opinion/guest-perspective/2010/09/22/when-will-real-estate-prices-rise-ask-feds?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+reindustrynews+(Inman+News+Industry+News)" title="Housing Bubble History">"When will real estate prices rise? Ask the feds"</a>. <b>The author, Sean O’Toole, makes some points regarding past and present U.S. housing bubbles that brought some underlying frustrations to the surface regarding my personal feelings on "how things really work". </b> My frustrations are not directed at O'Toole!<br />
<br />
Initially, O'Toole asserts that past and present housing bubbles are not the result of "irrational behavior on the part of buyers ...".<br />
<br />
<a bubble"="" housing="" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDcZ2gUF1D8u2QFrCvm9_mJJPLmYeNJlchqsroou-4XZGgI-mnm3WBFzsSKZDXCUQqsxHH39lJImugQ1jcnNG-yYT9L9wdfZCqsnMmv-viUygyo3eOAp9JE6DeUR31iHdsjgAmmhogY-o/s1600/housing-bubble.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDcZ2gUF1D8u2QFrCvm9_mJJPLmYeNJlchqsroou-4XZGgI-mnm3WBFzsSKZDXCUQqsxHH39lJImugQ1jcnNG-yYT9L9wdfZCqsnMmv-viUygyo3eOAp9JE6DeUR31iHdsjgAmmhogY-o/s200/housing-bubble.jpg" title="Housing Bubble" width="200" /></a>Obviously, financial bubbles couldn't be created without a market of buyers buying. Furthermore, this housing bubble wouldn't have been helped along if buyers didn't get caught up in the buying frenzy based on the "whose house increased in value more in the past two weeks" cocktail party conversations. "We're all investors now!" But, let's face it, this is human nature.<br />
<br />
<b>As I'm sure many of you have, I've read countless articles and endless reactions by people who elevate themselves to a high and mighty platform to simply pass negative judgement on the vast majority who got caught in this housing bubble / financial trap.</b> Oftentimes, these very same individuals have what I consider to be an extremely arrogant attitude and a "how is this going to negatively impact me" perspective on many things. They also tend to bunch everyone into a group of "should have known better", "greedy individuals", whose "stupidity and laziness chasing a cheap buck" is now costing them money through government action bailing out the masses. Are they right? Are these "should have known better" people who fell into the trap the real problem? Is the government to blame? O'Toole does direct some blame to the government:<br />
<blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">"Every single significant increase in home prices in the last 100 years was immediately preceded by government intervention or stimulus. The evidence is irrefutable. Every time the government works to make housing more affordable, prices rise.<br />
<br />
This actually makes perfect sense. Buyers always have, and always will, buy as much home as their banker tells them they can afford. If you make home financing more affordable, you increase the amount buyers can pay. But instead of getting more home for their money, prices simply rise to reflect the change."</blockquote>Let's take O'Toole's point one important step further to illustrate why those with the high and mighty attitudes I described above are, in my opinion, largely off base in attacking the wrong people while giving a pass to those at the epicenter of many of these problems. <b>On its most basic level, you can deduce nearly any argument down to simplistic, black and white, terms, but, in reality the housing / economic woes are the result of systemic issues now wreaking havoc in this country.</b> Unfortunately, the overwhelming message and media blitz is to look towards fixing your neighbor to solve the problem. Businesses walk away from assets each and every day, yet many cast morality judgement and consider their neighbor to be the irresponsible one for walking away from their poorly performing asset.<br />
<br />
To illustrate this, let's start with a simple question. Why wouldn't you buy a house during the housing boom if you had the means?<br />
<br />
Housing values were consistently climbing and the access to easy, affordable money, bought you much more. Unless you are inclined to follow the financial markets / trends on a regular basis, many people wouldn't have been concerned or even thinking about what may happen a few years down the road. By no means do I believe that ignorance makes for a good excuse, but the reality is that, for various reasons, people aren't informed on many issues. We see this type of behavior every day on countless topics. Even though we can agree that people should take the time, the reality is they don't. <b>Business professionals know this and shouldn't use this angle as a means to exploit the unsuspecting.</b> However, all too often, they do. And, those who enabled these exotic loans knew this and used every opportunity to exploit this weakness to generate a dollar. These enablers didn't do the right thing and inform their clients that the short-term benefits of these types of loans could and, most likely, would turn into a detrimental tool in the long run. Furthermore, and most importantly, let us not forget that the push to move these types of loans came from the very top echelon of these financial organizations. Again, it's human nature to trust the experts you turn to. In fact, I'm sure many of you have been in a situation where you have lost some money because you have gone the extra step to put trust, loyalty, and giving someone a chance, over what you would knowingly consider the "smart" business move.<br />
<br />
If you were told, "the loan is good, but beware that ...." many people would have thought twice before proceeding. Of course, plenty of people would have ignored the caution, but, I believe a larger group would have listened to basic common sense and reason. If your breaker goes out in your electrical panel and the electrician tells you the entire panel needs to be replaced because there's an inherent fire hazard, would you replace the panel? Some would, other's would opt to get a second opinion. If the second opinion came in the same, would you now replace the panel? Most of the remaining people would based on the advice their trusted experts gave them. And, this is what happened during the recent housing boom. <b>The majority of experts you went to, regardless of lending institution, hyped the very same products that are now destroying countless lives.</b> So let's look at it again. As a consumer, it appears like the environment to buy a home is good. Prices are going up, your money is stretching to buy you more, and to verify your sentiments, your mortgage advisor gives you the thumbs up, "I've got just the right mortgage to get you what you want!". After leaving Wells Fargo, they tell you the same at CHASE, Wachovia, Washington Mutual, Bank of America, and the list goes on and on.<br />
<br />
O'Toole finalizes his analysis by stating:<br />
<blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">"Hopefully at this point you are seeing a bigger picture. Home-price appreciation is largely just inflation, and housing bubbles are a recurring failure of our government to learn from its past mistakes. Rather than looking at the big picture, government officials and our representatives continue to jeopardize our future with the latest quick fix to a problem they don't seem to understand."</blockquote>In wrapping up my thoughts, I don't totally agree on this point made by O'Toole. <b>Yes, the government is involved in pushing through policy, however, who is really influencing our government?</b> Where do these policies and laws come from? Doesn't the countless millions of dollars being spent and lobbied every day by the uber / multinational corporations have a major impact on dictating government policy? How many members on the Hill are influenced to the point where the decisions they make don't necessary fall in line with what would be the best policy for the majority of people? It's tough to get re-elected these days without a few dollars backing you, isn't it?<br />
<br />
<b>At the end of the day, we the people need to address the real problems faced by this country not the contrived crap about your neighbor being the root of your problems because he or she belongs to a different religion, has a sexual preference you're not aligned with, looks differently than you, etc.</b> This is the smoke and mirrors that the powers at be want us to be consumed with. When we're arguing amongst ourselves, we don't have time to pay attention to the real issues. Don't continue to fall for this. Yes, your neighbor got sucked into the trap, but your neighbor didn't create the environment that enabled the known behavior and certainly wasn't the root cause of this housing / financial mess. <br />
<br />
<b>Nobody wants the government involved unless it is an issue that is near and dear to their hearts and promotes their ideology!</b> "Let the free markets work," they cry! Wouldn't that be great, a world where the uber / multinational corporations competed in a free market like the rest of us rather than spending unlimited funds to write the laws that enable their predatory behavior and create the market they're looking for.<br />
<br />
<b>Disclaimer:</b> I am a business owner. My livelihood comes from two CA S-corporations. I'm not anti-business, I'm anti-unfair monopolistic practices that take advantage of the masses to pad the financial bottom line. The majority of people work hard for an honest living and I am in business to make money, but not at the expense of using my knowledge and expertise to fool unsuspecting individuals into paying me for a detrimental or unnecessary service.PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-30368166226715046522010-09-17T23:55:00.000-07:002010-09-17T23:55:57.407-07:00For Sale By Owner Sign Says it AllWhen you can't get along with your neighbor, get a sign made, plop it in the yard, and move on. It's that simple!<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsTrqx4EVntKmMPUlwDE9pSdbqk1qf4SPWsSANLDY7l9itWUPo4ZKih6wjuXBIZJUd1B2NSuOzq4_ySW1QjhC4-PRq634YiRR3JjsQ5rk0bDaf6tSXXNS56oZQsApGaEewu5FHMYhzXjA/s1600/fsbo-humor.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsTrqx4EVntKmMPUlwDE9pSdbqk1qf4SPWsSANLDY7l9itWUPo4ZKih6wjuXBIZJUd1B2NSuOzq4_ySW1QjhC4-PRq634YiRR3JjsQ5rk0bDaf6tSXXNS56oZQsApGaEewu5FHMYhzXjA/s400/fsbo-humor.gif" title="For Sale By Owner Humor" width="400" /></a></div>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com1tag:blogger.com,1999:blog-673213375333149307.post-78868384027362342962010-09-16T19:34:00.000-07:002010-09-16T19:42:11.792-07:00Buy Now!Based on being a "natural contrarian", Brett Arends is giving the buy sign for housing. He's not suggesting that homes have bottomed in every market, but does believe it's a good time to look in many, especially since mortgage rates remain extremely low.<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><object height="363" id="wsj_fp" width="512"><param name="movie" value="http://online.wsj.com/media/swf/VideoPlayerMain.swf"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><param name="flashvars" value="videoGUID={3C3C3A7E-3384-4FE9-982D-59146D4EEF17}&playerid=1000&plyMediaEnabled=1&configURL=http://wsj.vo.llnwd.net/o28/players/&autoStart=false" base="http://online.wsj.com/media/swf/"name="flashPlayer"></param><embed src="http://online.wsj.com/media/swf/VideoPlayerMain.swf" bgcolor="#FFFFFF"flashVars="videoGUID={3C3C3A7E-3384-4FE9-982D-59146D4EEF17}&playerid=1000&plyMediaEnabled=1&configURL=http://wsj.vo.llnwd.net/o28/players/&autoStart=false" base="http://online.wsj.com/media/swf/" name="flashPlayer" width="512" height="363" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed></object></div><br />
Needless to say each purchase / deal has to be evaluated on its own merits, but I do agree with many of the points that Arends makes. Even if homes haven't quite bottomed in your market, most likely they have already tanked from boom highs. Furthermore, the glut of inventory is your friend as a buyer. Even if homes in your market stand to fall another 10%, what value does this create for you if interest rates move a point higher and tightening supplies force you to submit a strong offer to compete against other competition?<br />
<br />
In our own experience in the <a href="http://www.propertyqwest.com/" title="PropertyQwest.com">Phoenix, AZ housing market</a>, it has been tougher to find our opportunities this year due to the huge increase in investor activity. Even though values have trended lower in some segments of the market, the increased competition has led to higher purchase prices, a decrease in negotiation leverage, and smaller operating margins.<br />
<br />
As always, run the scenarios before you make a blanket assertion on whether or not it's the time to buy, since value is not always what it appears to be!<br />
PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-39429224311751720612010-09-15T21:26:00.000-07:002010-09-15T21:32:49.938-07:00Rethinking Homeownership?A <a href="http://www.businessinsider.com/great-news-for-housing-market-time-magazine-just-published-cover-story-saying-you-should-never-buy-a-house-again-2010-9" title="Rethinking Homeownership">Business Insider article</a> labeled this recent Time Magazine cover story as, "great news for housing market". Needless to say, you're out of your mind to use a media cover story to guide your home-buying decisions. There's no doubt that we can outsmart ourselves by complicating matters, but we can certainly do a similar disservice by taking too simplistic of an approach.<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7_oLvH4ZuCnKvD1xBAN9wNLVxlyVg7IpvhDHqsUWgtA4yD983n2RqmRmOWtGnCpYTPe3IPngq-T8eLgaqwS5Du8Rt4BOJWFe08looQhrtWi-ca3T6DdcLiYap3q4AI3vCY8AHYiLlb1U/s1600/rethinking-home-ownership.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7_oLvH4ZuCnKvD1xBAN9wNLVxlyVg7IpvhDHqsUWgtA4yD983n2RqmRmOWtGnCpYTPe3IPngq-T8eLgaqwS5Du8Rt4BOJWFe08looQhrtWi-ca3T6DdcLiYap3q4AI3vCY8AHYiLlb1U/s400/rethinking-home-ownership.gif" width="303" title="Time Magazine: Rethinking Homeownership"/></a></div><div class="separator" style="clear: both; text-align: center;"><br />
</div>Media and sensationalism go hand in hand these days. These dramatic statements sell product and help the bottom line. In reality though, if you have the ability to purchase a home (especially if you're a first-time home buyer), should we really believe that buying a property discounted 50% plus at 3.5% - 4.5% interest rates doesn't make sense? I'm obviously painting with a broad brush and can't speak to the validity of every opportunity in every market, since all deals aren't created equal and there are plenty of homes out there that still shouldn't be purchased despite how far they have already fallen. However, there are definitely some great housing opportunities out there carrying extremely affordable price tags. In fact, some price points make it much cheaper to own rather than to rent even when factoring in insurance, property taxes, and maintenance.<br />
<br />
So ... no, I'm not rethinking homeownership and neither should you. The housing picture remains grim, but don't check your brain at the door and get absorbed in this nonsense. What's next, "Rethinking Investing?". We all know that financial independence comes from a working wage, right? Just ask Bill Gates, Warren Buffet, and nearly every other financially well-off individual.PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-81186512084420596632010-09-15T15:30:00.000-07:002010-09-15T15:39:23.566-07:00CoreLogic: Home Price Index for July 2010CoreLogic reported their home price index to be flat for July, 2010 and noted underlying weakness in housing as a growing number of markets are declining since the expiration of the federal tax credit:<br />
<blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">SANTA ANA, Calif., September 15, 2010 – CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, today released its Home Price Index (HPI) that showed that home prices in the U.S. remained flat in July as transaction volumes continue to decline. This was the first time in five months that no year-over-year gains were reported. According to the CoreLogic HPI, national home prices, including distressed sales showed no change in July 2010 compared to July 2009. June 2010 HPI showed a 2.4 percent* year-over-year gain compared to June 2009.</blockquote>CoreLogic made it a point to reiterate that the weakness in housing is spreading and the weakness is continuing to grow relative to market conditions a handful of months back:<br />
<blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">"Although home prices were flat nationally, the majority of states experienced price declines and price declines are spreading across more geographies relative to a few months ago. Home prices fell in 36 states in July, nearly twice the number in May and the highest since last November when national home prices were declining," said Mark Fleming, chief economist for CoreLogic.</blockquote><br />
<div style="text-align: center;">12 Month House Price Index Change: Single-family combined series</div><div style="text-align: center;">(Click on chart for larger image in same window)</div><div style="text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiErkktiUnVXauARl3V5GUYq5ZzmUrlMQEpdclLr4ZjowFgFH9cMsxh2KjxIH9DWHxgzAc5ZzZKGVUWkSGDbZYZqw8wMWnzMxa9vkQaihyphenhyphenWXdzSh8DdcLAR53PYJyE7jUeny4v3Vgc7_7M/s1600/CoreLogic-housing-price-index-july-2010-combined.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;" title="CoreLogic Housing Price Index - Combined Single Family Series"><img border="0" height="311" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiErkktiUnVXauARl3V5GUYq5ZzmUrlMQEpdclLr4ZjowFgFH9cMsxh2KjxIH9DWHxgzAc5ZzZKGVUWkSGDbZYZqw8wMWnzMxa9vkQaihyphenhyphenWXdzSh8DdcLAR53PYJyE7jUeny4v3Vgc7_7M/s400/CoreLogic-housing-price-index-july-2010-combined.gif" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: center;"></div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: center;">12 Month House Price Index Change: Single-family combined excluding distressed series.</div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: center;">(Click on chart for larger image in same window.)</div><div style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; text-align: center;"><br />
</div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwjw_w0XxJrHXBQxURYjW7rLg60mhD8KjDWkxbMc9ZS-72v-HkyAsr8YO5v7Zypxn3LMVvTVcuLcvkJpB6gaLqpBBNBFSmNcfhGKiGffJYt8LKyhi4nVzVWlWMcdEJAN6HSwPDNQs2hh8/s1600/CoreLogic-housing-price-index-july-2010-excluding-distressed.gif" imageanchor="1" title="CoreLogic Housing Price Index - Combined Single Family Excluding Distressed Series"><img border="0" height="308" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwjw_w0XxJrHXBQxURYjW7rLg60mhD8KjDWkxbMc9ZS-72v-HkyAsr8YO5v7Zypxn3LMVvTVcuLcvkJpB6gaLqpBBNBFSmNcfhGKiGffJYt8LKyhi4nVzVWlWMcdEJAN6HSwPDNQs2hh8/s400/CoreLogic-housing-price-index-july-2010-excluding-distressed.gif" width="400" /></a></div><br />
This report continues to highlight the difficulties that remain in place for the U.S. housing market. The lack of jobs and disappearing stimulus show how fragile the overall housing market is. Even the absurdly low interest rates aren't enough to offset the poor underlying fundamentals.<br />
<br />
Click the following link to view the actual CoreLogic report: <a href="http://www.corelogic.com/uploadedFiles/Pages/About_Us/ResearchTrends/CoreLogic%20July%20HPI%20913.pdf" title="CoreLogic Home Price Index Report">CoreLogic Home Price Index Remained Flat in July [Actual PDF Report]</a>.PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-40907658896761311692010-09-08T23:58:00.000-07:002010-09-08T23:58:01.333-07:00Real Estate and Economic LinksBiggerPockets.com:<br />
* <a href="http://www.biggerpockets.com/renewsblog/2010/09/08/how-does-your-bank-define-performing-loan/" title="Real Estate and Economic Links: How Does Your Bank Define Performing Loan?">How Does Your Bank Define “Performing Loan”?</a><br />
<br />
Inman News:<br />
* <a href="http://www.inman.com/news/2010/09/8/near-record-affordability-in-real-estate?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+reindustrynews+(Inman+News+Industry+News)" title="Real Estate and Economic Links: Near-record affordability in real estate">Near-record affordability in real estate</a><br />
<br />
HousingDoom.com:<br />
<div>* <a href="http://housingdoom.com/2010/09/08/is-using-a-victim-strategy-in-the-housing-market-so-bad/" title="Real Estate and Economic Links: Is Using A Victim Strategy In The Housing Market So Bad?">Is Using A “Victim Strategy” In The Housing Market So Bad?</a><br />
<br />
MSNBC.com:<br />
* <a href="http://www.msnbc.msn.com/id/39055199/ns/business-real_estate/" title="Real Estate and Economic Links: Home lending pace rises; most are refinancings">Home lending pace rises; most are refinancings</a><br />
<br />
Calculated Risk:<br />
* <a href="http://www.calculatedriskblog.com/2010/09/lawler-again-on-existing-home-months.html" title="Real Estate and Economic Links: Lawler: Again on Existing Home Months’ Supply: What’s Normal?">Lawler: Again on Existing Home Months’ Supply: What’s “Normal?”</a><br />
* <a href="http://www.calculatedriskblog.com/2010/09/feds-beige-book-continued-growth-but.html" title="Real Estate and Economic Links: Fed's Beige Book: Continued growth, but widespread signs of a deceleration">Fed's Beige Book: Continued growth, but "widespread signs of a deceleration"</a><br />
<br />
HousingWire.com:<br />
* <a href="http://www.housingwire.com/2010/09/08/double-dip-in-home-prices-coming-in-2011-clear-capital?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+housingwire/uOVI+(HousingWire)" title="Real Estate and Economic Links: Double dip in home prices coming in 2011: Clear Capital">Double dip in home prices coming in 2011: Clear Capital</a><br />
<div><br />
</div></div>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-49540604468374769752010-09-07T21:59:00.000-07:002010-09-08T23:58:50.810-07:00Real Estate and Economic LinksBiggerPockets.com:<br />
* <a href="http://www.biggerpockets.com/renewsblog/2010/09/06/housing-market-insight-week-of-september-6th/" title="Real Estate and Economic Links: Housing Market Insight – Week of September 6th">Housing Market Insight – Week of September 6th</a><br />
<br />
Inman News:<br />
* <a href="http://www.inman.com/news/2010/09/7/most-bankers-dont-see-credit-easing?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+reindustrynews+(Inman+News+Industry+News)" title="Real Estate and Economic Links: Most bankers don't see credit easing">Most bankers don't see credit easing</a><br />
<br />
RealtyTimes.com:<br />
* <a dip"="" double="" href="http://realtytimes.com/rtpages/20100907_doubledip.htm" opportunity"="" title="Real Estate and Economic Links: From " to="">From "Double Dip" to Double Opportunity</a><br />
<br />
New York Times (Economix):<br />
* <a href="http://economix.blogs.nytimes.com/2010/09/07/mortgage-rates-and-home-prices/" title="Real Estate and Economic Links: Mortgage Rates and Home Prices">Mortgage Rates and Home Prices</a><br />
* <a href="http://economix.blogs.nytimes.com/2010/08/17/interest-rates-and-house-prices-a-murky-world/" title="Real Estate and Economic Links: Interest Rates and House Prices: A Murky World">Interest Rates and House Prices: A Murky World</a><br />
<br />
Calculated Risk:<br />
* <a href="http://www.calculatedriskblog.com/2010/09/mortgage-rates-and-home-prices.html" title="Real Estate and Economic Links: Mortgage Rates and Home Prices">Mortgage Rates and Home Prices</a><br />
* <a href="http://www.calculatedriskblog.com/2010/09/housing-starts-and-vacant-units.html" title="Real Estate and Economic Links: Housing Starts and Vacant Units">Housing Starts and Vacant Units</a><br />
* <a href="http://www.calculatedriskblog.com/2010/09/housing-completions-will-set-new-record.html" title="Real Estate and Economic Links: Housing Completions will set new record low in 2010">Housing Completions will set new record low in 2010</a>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-55470064137630624652010-09-07T18:50:00.000-07:002010-09-07T19:06:24.562-07:00Landlord, Tenant, and an Eviction on RyeThis kind of news gets to be awfully exasperating. When do people learn to simply get along and work together? Does everything have to come down to a lawsuit? Are the issues needing to be addressed here so insurmountable that all parties being impacted can't get into a room, have a civil discussion, and find an amicable solution? Oh right, I'm assuming that people are willing to find some middle ground. How simplistic and foolish of me!<br /><center><br /><object id="wsj_fp" width="512" height="363"><param name="movie" value="http://online.wsj.com/media/swf/VideoPlayerMain.swf"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><param name="flashvars" value="videoGUID={710F7682-AB62-461C-9138-CEBEFF4EE4BE}&playerid=1000&plyMediaEnabled=1&configURL=http://wsj.vo.llnwd.net/o28/players/&autoStart=false" base="http://online.wsj.com/media/swf/"><embed src="http://online.wsj.com/media/swf/VideoPlayerMain.swf" bgcolor="#FFFFFF" flashvars="videoGUID={710F7682-AB62-461C-9138-CEBEFF4EE4BE}&playerid=1000&plyMediaEnabled=1&configURL=http://wsj.vo.llnwd.net/o28/players/&autoStart=false" base="http://online.wsj.com/media/swf/" name="flashPlayer" width="512" height="363" seamlesstabbing="false" type="application/x-shockwave-flash" swliveconnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed></object><br /></center>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-2549980189471376872010-09-06T00:00:00.001-07:002010-09-07T19:40:23.491-07:00Jamie Dimon Singing the Real Estate BluesThe Los Angeles Times blog recently posted an article titled, <a href="http://latimesblogs.latimes.com/money_co/2010/09/jamie-dimons-real-estate-woes.html" title="Real Estate Woes">"Jamie Dimon's real estate woes"</a> noting that Dimon hasn't been immune to the housing downturn either as he has had to drop the asking price of his Chicago mansion:<br />
<blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">"The mansion, where Dimon lived back when he headed up Bank One, originally went on the market for $13.5 million in 2007. The bad real estate market has forced a series of reductions that have brought the listing price down by nearly half, to $6.95 million."</blockquote>As a result of Dimon's misfortune, the author (Daniel Popper) states:<br />
<blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">"As homeowners have struggled to modify their mortgages with JPMorgan Chase & Co., more than a few have probably felt flashes of anger toward the company's chief executive, Jamie Dimon ...... It may be some comfort to these folks, then, to know that Dimon has not been immune from the problems of falling home prices."</blockquote>I'm the last person to sympathize with the likes and ranks of people like Jamie Dimon, but I don't wish him ill will or find comfort in his circumstances despite not liking to deal with CHASE bank on any level.<br />
<div><br />
</div><div>Unfortunately, the greed and irrational exuberance at the highest levels (Jamie Dimon's world) of these uber and / or multinational corporations has created turmoil for the vast majority of people in this country. Furthermore, countless hardworking Americans have encountered these incredibly tough times to no fault of their own as a result of this unregulated mess and the <a href="http://usat.me/?39665776" title="Wells Fargo to Pay Back Overdraft Fees">slick maneuvering these uber banks use to assess account and various transaction fees</a>.<br />
<div><br />
</div><div>For Jamie Dimon, the economic mess that he was complicit in developing (or stood by allowing it to happen) has now landed like a big pile of crap squarely in his mansion's backyard. Welcome to the sober party! Unlike many Americans, I'm guessing he'll fare a little better even if he does have to get more aggressive with price drops on his modest abode.</div></div>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-65088680627789473792010-09-05T23:59:00.000-07:002010-09-07T23:39:08.531-07:00Tony Robbins Warns on Housing and the EconomyTony Robbins gives a "special warning" regarding where he believes the U.S. economy is headed:<br />
<div><blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">" ... the financial world, as you know it, is about to change radically at levels you won't even imagine and it's coming really quick. I can't tell you when, but I know it's coming quick; sometime in the next three, four, five, six, seven months it's going to happen".</blockquote></div><div>In the same camp as many economists, Robbins' is predicting more difficult times around the corner (stock market and housing). In fact, Robbin's is citing that the U.S. economy is on the cliff again as the stimulus effect is weaning.<br />
<div><br />
</div><div>Times are difficult, but it's certainly not productive to be frozen by fear and to concentrate on everything that's not working. In fact, it's difficult to operate at any level when your actions are being guided by fear and negative emotion. As Robbins' states, "Put yourself in a position where you educate yourself."</div><div><br />
</div><div>Positive thinking and education don't guarantee that everything will come out rosy. However, simply look around to see what fear, ignorance, and negative thinking get you. It's a waste of time and leads to many bad and uniformed decisions. We all know times are challenging. How we deal with it will largely determine how we're going to get through it. Cliche, yet true.</div><div><br />
</div><div>For obvious reasons, millions are made during the most dire economic conditions. It's our job to figure out how we're going to be one of those who prospers.</div><div><br />
</div><div>Embrace the challenge!</div><div><center><div style="text-align: auto;"><br />
</div><object height="385" width="480"><param name="movie" value="http://www.youtube.com/v/Z_rShZA_IjE?fs=1&hl=en_US&color1=0x2b405b&color2=0x6b8ab6"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/Z_rShZA_IjE?fs=1&hl=en_US&color1=0x2b405b&color2=0x6b8ab6" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object><br />
<br />
<object height="385" width="480"><param name="movie" value="http://www.youtube.com/v/LZuJqrcwrEU?fs=1&hl=en_US&color1=0x2b405b&color2=0x6b8ab6"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/LZuJqrcwrEU?fs=1&hl=en_US&color1=0x2b405b&color2=0x6b8ab6" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object><br />
</center></div></div>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-63008117822714596972010-09-04T12:48:00.000-07:002010-09-07T23:39:58.322-07:00Jim the Realtor, the Courthouse Steps, and InsanityGood ol' public trustee auction house bidding action at the courthouse steps courtesy of Jim the Realtor. Despite watching the back and forth bidding action driving the final sales price of this property up, the intriguing point to note here is Jim the Realtor's following acknowledgement [<a href="http://www.youtube.com/watch?v=dhdLIRlQiBg&feature=related">actual YouTube posting by Jim the Realtor</a>]:<br />
<blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">"I submitted an offer of $600,000 on this house on July 1st when it was listed as a short sale for $649,000. The sellers didn't respond, but I think the bank would have wanted to know about it."</blockquote>Keep in mind this home sold at the courthouse steps for $540k, despite Jim the Realtor having offered $600k when the home was originally listed as a short sale. As if we needed any more examples of how flawed the short sale process is. In most instances, loan modification workouts have been as pathetically unsuccessful as well.<br />
<div><br />
</div><div>Awfully hard to operate under utter incompetence.<br />
<br />
<br />
<center><object height="344" style="background-image: url(http://i1.ytimg.com/vi/dhdLIRlQiBg/hqdefault.jpg);" width="425"><param name="movie" value="http://www.youtube.com/v/dhdLIRlQiBg?fs=1&hl=en_US"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/dhdLIRlQiBg?fs=1&hl=en_US" width="425" height="344" allowscriptaccess="never" allowfullscreen="true" wmode="transparent" type="application/x-shockwave-flash"></embed></object><br />
</center></div>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-10684851532284340702010-09-02T22:32:00.000-07:002010-09-07T19:41:08.721-07:00A Positive Spin on HousingTired of hearing all of the negative news on housing? I am.<br />
<br />
There's no doubt the U.S. housing market and broader economy still face many challenges. In fact, you'd be a fool to ignore this reality. However, at a certain point, it becomes counterproductive to simply concentrate on any one aspect of any subject matter since allowing such one-sided concentration will begin to overshadow and ultimately suffocate other realities.<br />
<br />
The discussion on many real estate and economic blogs this past week regarding the latest <a href="http://realty-buzz.blogspot.com/2010/08/s-case-shiller-housing-price-index.html" title="S&P Case-Shiller Housing Price Index">S&P Case-Shiller Housing Price Index report (released August 31, 2010) </a> is a perfect example of such behavior. The S&P Case-Shiller housing report highlighted some positive numbers yet the analysis immediately shifted to warnings that these positive numbers where merely inflated by the federal tax credit incentive and the predicted second half slowdown would tell a much different, more negative, housing story. Even though I find myself in this more bearish camp, let's look at some other realities from a different perspective.<br />
<br />
Despite it being quite apparent that prices have further to fall in many markets, U.S. housing prices have already tanked significantly. In many markets, current residential housing price points are dating back to 2000-2003 levels and you can find great buys dating back to early 1990 levels or beyond. Furthermore, mortgage interest rates are at historically low levels and may slip to even lower levels.<br />
<div><br />
</div><div>Keeping this in mind, there are reasons to be cautiously optimistic about what could be if you are an investor looking for cash flow opportunities, a first time home buyer looking for their first home, a vacation home hunter, or a private lender looking for strong returns on a low LTV deed of trust investment.</div><div><br />
</div><div>In an op-ed housing article titled, "<a href="http://www.nytimes.com/2010/09/02/opinion/02case.html?pagewanted=1" title="A Dream House After All">A Dream House After All</a>", Karl E. Case further illustrates these positive points:</div><blockquote style="background: #eeeeee; border-width: 1px 0; border: 0px dotted #3D59AB; padding: 5px;">Do the math. Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833. In addition, the down payment would be $42,600 instead of $60,000.</blockquote>Does this mean you should go out and buy? Of course not, like any other investment or major purchase, you have to do your homework and weigh the pro's and con's of what you're looking to do based on the circumstances you're confronted with. Even though it's quite clear that the U.S housing market and economy will cause further pain in the lives of countless Americans, there are positive opportunities and data points to take into consideration despite the constant negativity that abounds.PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-76582284043521705862010-09-01T19:36:00.000-07:002010-09-01T20:22:52.356-07:00Even Lower Interest Rates?The 10-year Treasury note yield to fall below 2%? BofA Merrill thinks so. For those who have managed to come away unscathed from the seemingly endless and ongoing downturn in the economy, mortgage rates are truly at unreal levels.<br /><blockquote style="background: #eeeeee; padding:5px; border:1px dotted #3D59AB; border-width:1px 0;">They expect the Federal Reserve to continue to try to push long-term interest rates lower to support the economy. BofA Merrill now predicts that the benchmark 10-year Treasury note yield will fall below 2% in the first half of 2011, from the current 2.58%.</blockquote>If you have cash and you're looking to buy a rental property, get a mortgage for goodness sake. With such low interest rates, endless opportunities abound for strong cash flow opportunities. While the banks are giving the money away, use it and keep your cash liquid. Why wouldn't you?<div><br /></div><div>If you can't qualify for a mortgage, join the large crowd. The banks don't want to lend to you. They're doing just fine making money lending back to the government.</div><div><br /></div><div>Regardless of what camp you're in, there's no denying that interest rates are extremely low and will ultimately trend lower if BofA Merrill's prediction is correct.</div><div><br /></div><div>Complete Article: <a href="http://latimesblogs.latimes.com/money_co/2010/09/economy-gdp-growth-recession-bank-of-america-merrill-lynch.html" title="BofA Merrill sees 'growth recession' -- and another dive in interest rates">BofA Merrill sees 'growth recession' -- and another dive in interest rates</a></div>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-37281884503596352802010-08-31T23:28:00.000-07:002010-09-01T00:16:20.909-07:00Real Estate and Economic Links<div>AgentGenius:</div><div>* <a href="http://agentgenius.com/real-estate-news-events/the-top-ten-best-cities-for-the-next-ten-years/" title="Real Estate and Economic Links: The top ten best cities for the next ten years">The top ten best cities for the next ten years</a></div><div>* <a href="http://agentgenius.com/real-estate-news-events/the-silver-lining-in-the-real-estate-sector-home-prices-are-up/" title="Real Estate and Economic Links: The silver lining in the real estate sector – home prices are up">The silver lining in the real estate sector – home prices are up</a></div><div><br /></div><div>Inside Real Estate News:</div><div>* <a href="http://insiderealestatenews.com/2010/08/home-rentals-scarce/" title="Real Estate and Economic Links: Home rentals scarce">Home rentals scarce</a></div><div><br /></div><div>HousingWire.com:</div><div>* <a href="http://www.housingwire.com/2010/08/31/spcase-shiller-june-home-prices-up-4-2-from-year-ago" title="Real Estate and Economic Links: S&P/Case-Shiller: June home prices up 4.2% from year ago">S&P/Case-Shiller: June home prices up 4.2% from year ago</a></div><div>* <a href="http://www.housingwire.com/2010/08/31/zillow-30-year-mortgage-rates-drop-to-another-record-low" title="Real Estate and Economic Links: Zillow: 30-year mortgage rates drop to another record low">Zillow: 30-year mortgage rates drop to another record low</a></div><div><br /></div>Calculated Risk:<div>* <a href="http://www.calculatedriskblog.com/2010/08/existing-home-inventory-declines.html" title="Real Estate and Economic Links: Existing Home Inventory declines slightly in August">Existing Home Inventory declines slightly in August</a><br /><div>* <a href="http://www.calculatedriskblog.com/2010/08/on-case-shiller-house-prices-october-is.html" title="Real Estate and Economic Links: On Case-Shiller House Prices: October is the " witching="">On Case-Shiller House Prices: October is the "Witching Hour"</a><br /><div>* <a href="http://www.calculatedriskblog.com/2010/08/case-shiller-home-price-indices.html" title="Real Estate and Economic Links: Case-Shiller: Home Price indices increase in June">Case-Shiller: Home Price indices increase in June</a></div></div></div>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-33320027513305772532010-08-31T07:38:00.000-07:002010-09-01T21:06:38.513-07:00S&P Case-Shiller Housing Price Index - August 31, 2010 Release<blockquote style="background: #eeeeee; padding:5px; border:1px dotted #3D59AB; border-width:1px 0;"><b>New York, August 31, 2010</b> – Data through June 2010, released today by Standard & Poor’s for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index rose 4.4% in the second quarter of 2010, after having fallen 2.8% in the first quarter. Nationally, home prices are 3.6% above their year-earlier levels. In June, 17 of the 20 MSAs covered by S&P/Case-Shiller Home Price Indices and both monthly composites were up; and the two composites and 15 MSAs showed year-over-year gains. Housing prices have rebounded from crisis lows, but other recent housing indicators point to more ominous signals as tax incentives have ended and foreclosures continue.</blockquote><br /><div style="text-align: center;">[Click on graph for larger image in new window]</div><div style="text-align: center;"><br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgavcunjtnZXb1EVDIVL6IN2EEzUvhVlWC1mzsbyEclM2A6WZ1RiFsvjTG-6xqlRRXmHyWwB6W01uUWHsUMyYWPGyISFwA6NNBIrNc3vO64VEdeko06wT_lvjMTccHiUAhNO5ZBrPO7iBk/s1600/s+%26+p+case+shiller+home+price+index+june+report.gif"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 262px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgavcunjtnZXb1EVDIVL6IN2EEzUvhVlWC1mzsbyEclM2A6WZ1RiFsvjTG-6xqlRRXmHyWwB6W01uUWHsUMyYWPGyISFwA6NNBIrNc3vO64VEdeko06wT_lvjMTccHiUAhNO5ZBrPO7iBk/s400/s+%26+p+case+shiller+home+price+index+june+report.gif" border="0" alt="S & P Case Shiller Home Price Index" id="BLOGGER_PHOTO_ID_5511587320429468594" title="S&P Case-Shiller Home Price Index Chart" /></a><div><br /></div><div>San Francisco, San Diego, Minneapolis, and Los Angeles led the charge for year over year gains while Las Vegas, Charlotte, Seattle, and Tampa sustained the largest losses.</div><div><br /></div><div><br /></div><div style="text-align: center;">[Click on graph for larger image in new window]</div><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyOS9jwOYM1pPM2IFq4zuH0-QCS7gCTREgiyuvNAi8q9ou2uBQIIdhzmYIYPtMRVMSSpcAddB0Oe4ihvSOFexl84_rouUkTFuq-p9zrMvOhUgvmHYAUHzp6-DxXVf2rYg07cCwQBrabkk/s1600/s+%26+p+case+shiller+home+prices+june+report.gif"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 367px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyOS9jwOYM1pPM2IFq4zuH0-QCS7gCTREgiyuvNAi8q9ou2uBQIIdhzmYIYPtMRVMSSpcAddB0Oe4ihvSOFexl84_rouUkTFuq-p9zrMvOhUgvmHYAUHzp6-DxXVf2rYg07cCwQBrabkk/s400/s+%26+p+case+shiller+home+prices+june+report.gif" border="0" alt="S & P Case-Shiller Home Prices" id="BLOGGER_PHOTO_ID_5511592614160318946" title="S & P Case-Shiller Home Prices" /></a><div><br /><div><br />Actual S&P / Case Shiller PDF Release: <a href="http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline%3B+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1245220360367&blobheadervalue3=abinary%3B+charset%3DUTF-8&blobnocache=true" title="The Second Quarter of 2010 Saw Modest Improvement in Home Prices According to the S&P/Case-Shiller Home Price Indices">The Second Quarter of 2010 Saw Modest Improvement in Home Prices According to the S&P/Case-Shiller Home Price Indices</a></div></div>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0tag:blogger.com,1999:blog-673213375333149307.post-11200892803331906502010-08-31T00:38:00.000-07:002010-08-31T01:33:56.423-07:00Free Home in Escondido, CA!<blockquote style="background: #eeeeee; padding:5px; border:1px dotted #3D59AB; border-width:1px 0;"><br />"The company is giving away the house for free. No down payment, no closing cost, no mortgage, no joke. You want it? It's yours.<div><br />There's just one catch. The new owner will have to pay to have it hauled away from the lot on the northeast corner of West 11th Avenue and South Escondido Boulevard, where it has been since 1922.</div><div><br />Tom Crowley, a senior associate with Hanson Commercial, said he has heard the move will cost more than $10,000, but less than $20,000.</div><div><br />The new owner also should be aware that the 800-square-foot, single-story house is a fixer-upper. It has no floor, its roof needs repairs and all its fixtures need to be replaced."</div><div><br /></div></blockquote><div><br /></div><div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXphZ3xfLrU58C-yVPkdAo3GWHVgPZdZBIqJhyphenhyphenjctwgBhypHLyO-muFBjGsvCxWiChHxES-W465d7CohmHY1unzn-8StbBhgF-9g0YalXrxHW86Bi-dEkPLF8Q8s_5f_YdyH7UWj3mhOM/s1600/Free-Home-Escondido.jpg" title="Escondido Home Could Be Yours for Free"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 300px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXphZ3xfLrU58C-yVPkdAo3GWHVgPZdZBIqJhyphenhyphenjctwgBhypHLyO-muFBjGsvCxWiChHxES-W465d7CohmHY1unzn-8StbBhgF-9g0YalXrxHW86Bi-dEkPLF8Q8s_5f_YdyH7UWj3mhOM/s400/Free-Home-Escondido.jpg" border="0" alt="Free Home in Escondido, CA" id="BLOGGER_PHOTO_ID_5511475617015532050" /></a><br /><div>Marketing, marketing, marketing! Despite the nice offer, this home clearly doesn't appear to be much of a deal after factoring in the real costs of getting this property renovated and that's if the house doesn't fall apart during the moving process!</div><div><br /></div><div>Thanks, but no thanks. You can keep this one, Mr. Crowley!</div><div><br /></div><div>In case you see it differently, check out our good <a href="http://www.hgtv.com/haulin-house/show/index.html" title="Haulin House">"Haulin' House" friends over at HGTV</a> to help with the move. </div><div><br /></div><div><br /></div><div>Complete Article: <a href="http://www.nctimes.com/news/local/escondido/article_700702fd-8fb0-54cd-9925-cf1de3d4e64e.html" title="The Realty Buzz: ESCONDIDO: House is free to a good home">North County Times - ESCONDIDO: House is free to a good home</a></div></div>PropertyQwest.comhttp://www.blogger.com/profile/07861345155365974883noreply@blogger.com0