|
There is much discussion about how the real estate market is
in the middle of its turnaround based on sales increasing on a
year-over-year basis. Though the fact that housing is again moving
is fabulous news, let's not lose sight of which homes are selling.
Here is a closer look at different price ranges and how they are
faring in the current 'boom':
|
0-100,000
100,000
- 250,000
250,000
-5 00,000
500,000
- 750,000
750,000
- 1,000,000
1,000,000
- 2,000,000
2,000,000+
|
sales
up 38.8%
sales
up 8.7%
sales
down 6.2%
sales
down 8.9%
sales
down 10.6%
sales
down 23.3%
sales
down 32.4 |
As
we can see, this rebound has only affected the lower price points.
Make sure your upper end sellers realize what is actually happening
behind the headlines.
Keeping Current Matters Members can Click Here
to login and get slide #7 in the September issue showing the above
information in a table form. This will allow you to simply and
effectively make the point to your sellers.
|
|
|
For the last few years the joke has been that 'short sales'
should be relabeled 'long sales' because of the difficulty in
getting them closed. However, things just may be changing.
Completed short sales in the first half of 2009 were up 208% over
the first half of 2008.
It seems the banks are no longer happy with the alternatives they
have been using in place of the short sale - either loan
modification or foreclosure. A new study says that over 50% of
successful modifications end up in default anyway within six
months. The banks are also seeing that bringing a home through the
foreclosure process nets them only a fraction of the price a short
sale would.
Look for the administration, in the next few weeks, to announce a
'streamlined' short sale process that should make selling a short
sale quicker and easier. We believe the banks will look favorably
on the new process and that will lead to tremendous opportunities
in 2010 for the agents willing to learn how to manage the
expectations of the purchaser considering a home requiring a short
sale.
|
|
|
|
Great salespeople are great listeners. In order to prove to
the customer that their needs are our primary concern, we must be
willing to listen long enough to find out what their needs are. In
today's market, we must listen intently to what the consumer is
trying to convey to us. The business is no longer about us telling
people what to do. Instead, it now revolves around our ability to
bring the consumer through a discovery process in order for them to
truly understand the points they need to know. That requires us to
educate and empathize with our clients. Take the time to care
enough to listen!
|
|
|
1.
Last push for $8,000 tax credit
There
has been a lot of press about a possible extension for the tax
credit. We DO NOT know for certain that will happen. What we do know
is the current program requires the buyer to close by 11/30 of this
year. Let's help as many buyers as we can.
2. Become educated about short sales
As we discussed above, it is imperative that we become intimately
familiar with the short sale process as quickly as possible. There
will be a tremendous opportunity in that segment of our business
for at least the next 2 years.
3.
Business plan for 2010
Please don't wait until January to start planning your goals for
2010. We are in a business that requires that we put a deal into
contract months before it closes. What we do in November and
December (and in some cases October) will not close until after the
first of the year. Make 2010 the best year of your career by
planning your work now!
4. Read more than just the headlines
We
are all happy that we are beginning to see an end to the negative
press that has haunted the industry over the last two years.
However, we must realize that positive headlines which don't
accurately convey current market conditions can be just as
dangerous. Make sure you know the 'story behind the headline' and
that you can simply and effectively communicate that story to those
who see you as a trusted counselor.
5. Understand that it is more than just 'absorption rate',
it is also about 'accumulation
rate'
As
an industry, we are starting to realize that, in order to price
properly, we must look at more than past sales. We must also look
at current absorption rates to determine future movement in
pricing. We must also look at future inventory coming to the market
and determine what that will do to pricing. How much inventory
(REOs and pent-up seller demand) will 'accumulate' in your
marketplace over the next six months? How will that increase in
inventory affect pricing?
|
|
|
|
|
|
Bankrate.com surveyed Americans to see if they still
believe buying a home is a great investment for the future. 92%
said yes!
All markets (stocks, gold, real estate, etc.) have cycles. The
question should be whether or not the investment is a good long
term investment. An argument can be made that real estate is one
of the best long term investments available.
Don't miss out on the opportunity this current market presents.
|
|
"One of the most
vital fundamentals (in housing), the ratio between supply and
demand, is still out of whack." This is a direct quote
from Newsweek Magazine.
Prices will not stabilize until the fundamentals align. With
foreclosures ramping up and about to hit the market, existing
inventories will dramatically increase over the next several
months. The best time to sell
your home is today!
|
|
Many people are hoping
that the modification efforts taking place will enable us to
prevent the wave of foreclosures that many are predicting. Though
there is great work being done, we just have to look to the words
of the administration regarding the House Affordability
Modification Program (HAMP).
"The Treasury expects 'millions of foreclosures' even if the
HAMP is a total success." says Herbert Allison, U.S. Treasury's
assistant secretary for financial stability. |
|
http://www.google.com/
publicdata?ds=usunem
ploymentmet=unempl
oyment_rate&idim
Great source for unemployment
rates going back to1990. You
can look at your state or
compare states with a couple of
clicks. With unemployment
having a huge effect on the
current housing situation, this
site is very valuable. |
|
"The
future belongs to those who believe in the beauty of their
dreams."
~Eleanor Roosevelt |
|
"To have your info, inspiration and "real"
appraoch at my fingertips is invaluable. You
are like my silent partner in real estate! Thanks for all you do to
further the industry we all believe in! "
Georgia Westcott
The Westcott Group Inc.
|
|
KeepingCurrentMatters.com
Click here to subscribe today
and gain access to
client-ready
presentation materials,
current
market insight, expert
audio
commentary and other
special
benefits reserved
exclusively for
Keeping Current Matters™
family members.
|
|
|
