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If Supply Goes Up, Prices Will Go Down

HOUSING SUPPLY Today I want to cover the impact the expired tax credit and the Fed’s exit of the mortgage market will have on home prices as we move forward. Whenever we talk about pricing, we must look at two variables: supply and demand. We covered buyer demand in yesterday’s blog, No Tax Credit.  How […]

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No Tax Credit. How Will You Wind Up?

BUYER DEMAND The big question in the real estate industry today is what happens now that the Homebuyer Tax Credit has expired. There are many theories around this issue. Some believe that the tax credit (along with other government programs) has created a stabilization in the housing market both in the number of sales and […]

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The Upper End: Win, Place, or Show?

In this horserace to a more normalized housing market, there seemed to be only one constant. The luxury market has been the horse bringing up the rear. We have been experiencing some stability in the lower price points in almost every geographic market. However, the upper tier price points have had an overabundance of inventory […]

Better Questions Will Get You a Better Agent

When interviewing agents to sell their home, most homesellers really only care about the answer to two questions: Who is going to sell it for the most money? Who is going to charge me the least? The result of these narrow criteria is painful to the seller.  Most people list their home at a price […]

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Housing in 2010: Supply Will Grow, Demand Will Slow

When we talk about future pricing on any item we must look ahead and determine two things: supply and demand. It is a rather simple concept but one that often is forgotten when we talk about real estate. In a blog post last week titled Pricing a House in Today’s Real Estate Market, I touched […]

5 Good Reasons to Sell Your House NOW!

In Monday’s blog, 5 Good Reasons to Buy That Home NOW!, I discussed why now was the best time to jump in and buy a home. Today I want to discuss why now is also the time to sell a house you own. It might seem contradictory to claim that it is the best time […]

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Bedside Manner or Skilled Hands?

Imagine for a moment that you have been told that you need surgery.  You have a choice between two surgeons: The first has a wonderful disposition.  He holds your hand as he explains the procedure, the risks, the rewards, and the likelihood of success.  He may even shed a tear as you deal with the […]

Behind on Your Mortgage? This May Help

After receiving an overwhelming response to Friday’s post, I realized two things. First, more people than I thought are willing to admit that they need help with their mortgage payment. Second, there are many people out there who are willing to help. Both realizations were great news to me. Usually when I post on the […]

It Is Hard to Buy a House If You Don’t Have a Job

One of the biggest challenges to a housing recovery is the current rate of unemployment. It is obvious that a person without a job can’t get a mortgage. An additional impact is that many people who are currently employed are afraid to commit to buying a home because of the uncertainty of the job they […]

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What is Today’s Luxury Buyer Thinking?

Whenever you are selling anything, it helps to have an idea what your customer is thinking. I had the opportunity to attend a session at the Luxury Portfolio Summit in Las Vegas which covered the findings of the Survey of Affluence and Wealth in America 2010 produced by American Express Publishing and the Harrison Group. […]

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Buyers and Sellers Team Up on Financing- Part 2

Last week, we began with a premise…that Buyers have a WANT (the lowest monthly payment, even more than the lowest Sales Price) and Sellers have a NEED (to differentiate their home from all the others on the market), and that creative approaches to financing is a method to satisfy both Buyers and Sellers.  Part I […]

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Buyers and Sellers Team Up on Financing

Let’s start with the premise that buyers do NOT buy big ticket items (like a home or a car) based on its sales price; rather, they buy based on their proposed monthly payment (or cost). Additionally, when looking to sell your home with so much availability of homes on the market, the biggest challenge a […]

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Homeownership: Still the American Dream

There seems to be a long held American belief currently under attack. For over two hundred years, homeownership in this country was a desire of almost every American family.  Recently however, more and more people have been pontificating on the fact that owning your own home should never have been held in such high regard. […]

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Fed Flip-Flops on House Flips

Finally, some good news from the FHA. Effective February 1st, the FHA is waiving their requirement of the “90 day holding period” before home sellers (predominantly real estate investors and speculators) can resell a piece of real estate to a buyer who uses FHA Insured financing.  Given the recent increase of the UFMIP, coming reduction […]

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What Happens When the Fed Exits the Market?

The Fed is scheduled to exit the housing market this spring. The Home Buyer Tax Credit ends on April 30, 2010 (the date the house must be in contract). The Fed has already announced that their program purchasing mortgage-backed securities will expire on March 31, 2010. Most anticipate a quick and dramatic rise in interest […]

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New FHA Rules

Today, after weeks of speculation, the FHA announced their plan to secure the solvency of the Insurance Fund.  And it is NOT good news for Homebuyers, and therefore, NOT good news for sellers either.  I’ll discuss the particulars in a minute; but first, let’s look at how this is the THIRD nail in the coffin […]

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Are Foreclosures Coming to the Luxury Market?

There is no doubt that prices in the lower end of the market have fallen rather dramatically over the last several years. Much of this loss in equity occurred as people were unable to pay their mortgages, and the homes went to foreclosure. Many were quick to dismiss this dilemma as the result of questionable […]

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Is Your Deal Dying? Find a Real Estate Doctor.

Operating in the current real estate market is no easy task. Whether you are selling a house, buying one, or doing both, it requires the skill of a surgeon to carefully slice through the layers of information available in order to get to the core issues. At the same time, you must have the insight […]

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One more time: IT’S ABOUT SUPPLY AND DEMAND!

Coming into 2010, there are many people trying to decipher all the data that is being reported regarding the housing industry. The main goal is to try and bring clarity to a market that has been clouded with confusion for the last two years. We must prevent ourselves from looking for a simple solution that will justify […]

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Real Estate 2010: New Year, Less Fear

“Fear always springs from ignorance.” -Ralph Waldo Emerson Unlike last year, we are better prepared for the challenges ahead of us.  Knowing how the market is moving will help us in the decisions we make.  Here are a few things to consider when making your move into the New Year: Mortgaging Interest Rates – Rates remained […]

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Looking Back: Top 10 Real Estate Stories of 2009

The last week of December is always an interesting time. As we plan for the next year, we like to look back on all the important stories and events of the last year. We will gather around the television or paper and endlessly quiz each other on the multitude of Top 10 Lists that inevitably appear. Here […]

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OMG! Is that a Luxury Home Buyer I See?

Yesterday, we reported on the differences between two major housing reports that were released last week. Today, I want to comment on something both reports had in common but has been vastly under-reported: the sudden increase in sales of luxury homes. The past several months have shown a tremendous uptick in buyer activity. And, though […]

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Home Sales: UP…no wait…DOWN…no wait…

This past week there were two different housing reports released. The first was the National Association of Realtors’ ‘Existing-Home Sales Report’ and the other was the U.S. Census Bureau’s ‘New Construction Report’. The most confusing part of the news is how divergent the data on the reports was. The Existing-Home Sales Report showed a month-over-month […]

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Strategic Defaults: Naughty or Nice?

You can’t pick up a paper or turn on a television today without hearing about the foreclosure situation in this country. There is no doubt the current economy and unemployment numbers have devastated the finances of many families and thus made it impossible for them to pay their mortgage. However, what many don’t realize is that […]

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Should You Be Afraid of Shadows?

The two most important factors whenever you price anything is the demand for that item and the current supply of that item. It is well known as the supply and demand curve. Real estate is no different.  So, as we are about to head into 2010, let’s look at the potential demand for residential housing […]