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Supply Goes Up, Prices Come Down. It’s that Simple

The big question in real estate is what will happen with home prices over the next few months. The experts have already weighed-in predicting prices will probably take another dip down. The reasoning? Put simply, the inventory of homes on the market is greater than the demand for housing. Demand will remain stable at best. […]

What Was Your Reason for Selling in the First Place?

I realize that many of today’s sellers are forced to sell their homes because they have fallen on tough economic times. They need to ‘get out from under’ the financial burden of a mortgage they can no longer afford to pay. They might have very little equity or may even be in a negative equity […]

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Sell Now or Wait? What the Experts Are Saying

More and more homeowners are questioning whether they should keep their homes on the market or wait until next year to sell. The thinking obviously is that next year the market will be better and therefore they will be able to garner a higher price. But, is that true? Is there any evidence that the […]

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Will the Shadow Inventory Ever Come to Light?

The big question about shadow inventory is when this backlog of foreclosures will come to market. Prices will not be adversely affected until these distressed properties are actually put up for sale. Only then will they truly be competition to existing homes for sale. It seems that day may be upon us. Much of the […]

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Are You Drowning in a Sea of Real Estate Information?

One of the most difficult things to do if you are thinking of buying or selling a home is to navigate through the sea of information available today. If we google “real estate” there are approximately 441 million sites. That’s 441 MILLION!! Other searches you might try: “real estate information” – 277 million sites “selling […]

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When Will We Start Rewarding Honesty Again?

I made a comment a few weeks ago that the only thing that will bring the housing market back is honesty. It was a simple statement; unplanned and unrehearsed. It sort of just fell out of my mouth. I didn’t think much of it even after I said it. I was shocked at how it […]

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What Will My House Be Worth Next Month?

We always want to make sure that we get at least a fair price for anything we are selling. Truth be told, we hope we get top dollar and would not be upset if a buyer was willing to pay a premium above that. The same dynamics come into place when we are selling a […]

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A Closer Look at Home Pricing Indexes

You might think that home values are on the rise if you read the headlines this week. It seems that almost every home pricing index is showing an increase over prices last year: The latest S&P Case Shiller Index showed a year-over-year increase of 3.8% Core Logic put the number at +2.6% The RPX index […]

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Are Home Prices Actually Increasing?

There is much euphoria about housing prices based on the last month’s data. Almost every pricing index has shown an increase over previous prices. The news looks very encouraging. Many media sources have reported that perhaps we have hit bottom regarding prices and are now headed in a more positive direction. I wish that was […]

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The Cry for Another Tax Credit

Friends, I believe we are standing atop the second hill of a rollercoaster.  I know another dip is coming, though I am not sure when.  I think it might be a steep drop, but I am not sure how steep. The KCM Blog frequently explains why the market has another bottom to reach (shadow inventory, […]

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Hope is No Longer A Good Strategy

There is no one that wants the housing market to recover more than I do. Over 50% of my investment portfolio is comprised of real estate. My job is to teach real estate professionals what is happening in the market and why it is happening. It would be a lot more fun if I could […]

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Halfway Through The Year…Some Random Thoughts

June 30th is a good time to take a pause an assessment of where we are…call it a reflection: The Tax Credit is gone. Although we are likely to see an extension of the closing portion of the credit, there looks to be no new beneficiaries of this program.  Years from now, we will look […]

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Home Buyers Tax Credit Extension Update

UPDATES!  Friday 7/2 12PM: Done! The president has signed the bill. Wednesday 6/30 10:30PM: Tax Credit Deadline Extension and Flood Insurance Extension passed by Senate. Headed to the President!!! (Isn’t in main stream media yet but we got it from a VERY reliable source). Wednesday 6/30 1:30PM: The Associated Press is reporting that politics may […]

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Why is Real Estate So Confusing Today?

May Shows a Continued Strong Pace for Existing Home Sales –  National Association of Realtors (NAR) June Existing Home Sales Report headline Is May’s Home Sales Decline an Alarming Signal of What’s to Come? – headline of an article in Housing Wire Both of the above headlines appeared this past Wednesday. They seem to be […]

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Communication IS the Lubrication

Catchy headline, yes?  But I have been reflecting lately on how we can improve the “client experience”, and I was reminded of something I heard mortgage icon Greg Frost say way back in 1994.  From a stage in Palm Desert, California, Greg proclaimed that “Communication is the lubrication of a well-oiled transaction.”  I, like the […]

5 Things Sellers Must Require of a Real Estate Agent

Are you thinking of selling your home? Are you dreading having to deal with strangers walking through the house? Are you concerned about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of selling. A great agent is always worth more than the commission they charge just […]

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Job Creation: Only Solution for a Housing Recovery

The government has tried many stimulus programs to re-energize housing.  They attempted to kick-start demand by offering the First Time Home Buyers Tax Credit and they did have some success originally. They extended the program and added a provision for move-up buyers also. Even the government admits that the extension may not have increased demand […]

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5 Dumbest Reasons Given for Not Buying a Home

It is so easy to kick someone who is down. It doesn’t take much effort and there is little fear of retaliation. Many people are jumping on the band wagon riding against homeownership in this country. People are pontificating on every aspect. Whether it is pricing or the more intrinsic values of owning a home […]

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The Post Tax Credit Housing Market (Part 3)

How will home prices be impacted? The tax credit and most other government programs aimed at stimulating the housing industry have expired. Real estate is now on its own two feet and stepping into the second half of 2010. It appears that demand has fallen off a bit since the expiration of the tax credit […]

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The Post Tax Credit Housing Market (Part 2)

What will housing demand look like for the rest of 2010? It has been an interesting six weeks since the last of the government programs for buyers, the Home Buyer Tax Credit, has expired. Demand has slowed down but has not come to the screeching halt some had expected. The million dollar question is ‘What […]

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The Post Tax Credit Housing Market (Part 1)

Here we are six weeks after the expiration of the Homebuyer Tax Credit. Armageddon did not take place. Homes are still selling. Certain price points are actually selling quite well. The question remains what will happen to the overall housing market as we proceed through the year. There is still much uncertainty as to what […]

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Distressed Properties Impact the Value of YOUR Home

There are times in our lives when we have it better than many of our family, our friends and our neighbors. We try to help in any way we can. Yet, to some degree, we are relieved that we are not impacted by their challenges. Many people look at the heartache in the current housing […]

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The Appraisal: A True Evaluation of a Home’s Worth?

Every house for sale in today’s real estate market must be sold twice. First, you must find a buyer ready, willing and able to purchase the home. Second, you must sell the value of that house to a bank so they will agree to lend money based on the negotiated price. The second sale may […]

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News Alert! The Luxury Market Has Returned

There is no longer any question that luxury homes are beginning to sell.  The high-net-worth client has marked 2010 as the year to again start purchasing real estate and their desire is turning into sales. Financing is beginning to open up in the ‘jumbo’ market and prices are starting to reflect true values as upper […]

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Supply and Demand: How it applies to Real Estate

Supply and Demand. It is a relatively easy concept to understand. Most of us learn it in high school. The price of any item is determined by two variables: the demand for that item and the current supply of that item. If I had one of only seven Spanish gold coins known to exist, the […]