We are often asked whether it is better to rent or buy in the current housing market. The answer to that question is: “It all depends”. There are certain situations where renting short term probably makes sense. It may make sense if you are retiring to a different region of the country and are not […]
Every day we are bombarded with statistics and data. Housing starts are up, housing starts are down; more job losses, unemployment is improving; foreclosures, short sales, housing inventory, interest rate movements and much more. It’s enough to make your head spin. There’s an old saying that claims: “All real estate is local”. It infers that […]
The inventory of foreclosed homes for sale has been dwindling for almost six months. Everyone is wondering if the worst of our challenges with distressed properties are behind us. We are sorry to report that isn’t the case. We must realize that the problems banks have experienced with their paperwork on these properties has done […]
Each day we attempt to give truthful insight on the current housing market. If we report what is perceived as negative news, some in the real estate community come down on us hard. However, when we explain that we think now is a great time to buy, we get an avalanche of feedback from the […]
There is no doubt that one of the main reasons for the housing collapse was that mortgage underwriting became too lenient. It seemed anyone who wanted to purchase a home found someone to give them a mortgage; whether they actually qualified for it or not. These buyers eventually couldn’t make their monthly mortgage payment and […]
Many headlines in the media right now are proclaiming the total collapse of the housing market. What makes it seem very believable is the headlines are based on two reports from the National Association of Realtors (NAR): the Existing Home Sales Report and the Pending Home Sales Report. However, all is not what it seems. Both […]
What if everything you believed to be true about mortgages, wasn’t actually true after all? Would you rather know now or later? In my experience, I have come to understand that many, if not most, clients come ‘pre-conditioned’ by what has long been termed “conventional wisdom”. For generations, people have been told that when buying […]
Everyone wants to comment on the current real estate market. They want to talk about how now is not the time to buy a home. Some even argue owning a house has never been a great investment. Most say it will be a long time before real estate again begins to appreciate. It all sounds […]
Last week, we reported on the National Association of Realtors’ (NAR) Economists’ Outlook and gave you a map showing the percentage of overall sales that distressed properties represented in each state. Today we want to show you another map from the same NAR outlook. This one shows the number of months shadow inventory by state: NAR […]
Last week, MacroMarkets LLC announced the results of the March 2011 Home Price Expectations Survey, compiled from 111 responses of a diverse group of economists, real estate experts and investment and market strategists. Many media sources reported on the survey’s comment about a projected ‘double dip’ in prices. What the media didn’t aggressively cover was […]
Most buyers want to make sure they get a ‘good deal’ when they purchase something. Purchasers of real estate are no different. That is why many decide to buy a distressed property (a foreclosure or a short sale). The National Association of Realtors (NAR) last week reported foreclosures, on average, sell at a 22% discount […]
One of the primary objectives of owning a home is to let the home appreciate over time and become a pillar of a family’s financial strength. But before we can discuss “wealth”, we need to identify the stages to get there. Stage 1 Having “Emergency Cash” is the first stage. It’s having $5-7,000 liquid for […]
We have often written on the impact foreclosures and short sales have on the value of the house next door. The Center for Responsible Lending has done great reporting on the subject. It seems distressed properties will be a challenge we will need to deal with for some time. The National Association of Realtors (NAR) […]
There are those currently debating the financial advantages of owning a home. Some are looking at studies and reporting that homeownership has never really been a great investment. One of these people is Jack C. Francis, a former Federal Reserve economist and professor at Baruch College. He said in a recent CNBC article: “For generations, […]
The government decided early on that the market would not be able to absorb the number of foreclosures that the financial crisis was creating without crushing house values. This was one reason that they funded the Troubled Asset Relief Program (TARP). This past week, the Congressional Oversight Panel (COP) weighed in with their opinion on TARP’s […]
Business Insider’s Money Game interviewed real estate expert Barbara Corcoran earlier this week. This is what she said about buying in this market: “We have a regular real estate miracle happening right now. We not only have record low prices, but we also have cheap money.” A second real estate icon, Donald Trump, just a […]
There’s an old saying that talks about “killing a flea with an elephant gun”. I think that may somewhat trivialize the issue at hand and I don’t want to do that. The issue is a big one, a serious one. So, I modified the saying just a bit to establish that I understand the gravity […]
Home values are again beginning to fall. What has caused this renewed downward pressure on prices? It can be directly tied to the number of distressed properties in the region which have shredded values in some marketplaces. Foreclosures and short sales impact prices in two major ways. They are discounted competition to the house next door […]
Last week, my son and I were flying home after spending a week at The LeadingRE Conference in Las Vegas. He said he couldn’t wait to sleep ‘in my own house’ again. That made me think of this blog post I wrote last year. – Steve My Son, His New Home, and What It Means […]
There is an interesting phenomenon taking place in the real estate market. While house prices are falling, the rich are starting to purchase. DataQuick Information Systems reported last week that sales on homes $1 million or more rose 18.6% last year after four consecutive years of decline. This is at the same time that sales […]
Sellers in any real estate market are looking to get the best possible price. If you are looking to sell in the next year, today’s price may well be the best price. Home values stabilized somewhat in 2010. Many hoped that was a sign that values had bottomed out and we would see price appreciation […]
I brainstorm with dozens of real estate agents every month. I have sat down with literally hundreds of them over the years. And one of the primary questions I ask them is “Why would I list my home with you?”. I am constantly amazed that over 90% of them give the same exact basic answers. […]
You can learn so much just by observing nature. Last week, I was staying at a fabulous hotel in southern California. My wife and I were having lunch at an outside table at the hotel restaurant. It was impossible not to notice the ducks that gathered around the tables at the restaurant looking for food. […]
There is a growing number of people debating whether the government should continue its level of support for homeownership. Mortgage assistance is being pulled back and even the mortgage-tax-deduction is now up for debate. We want to look at how the people of this country view owning a home and the reasons they buy. Last […]
Many people are placing the concept of homeownership under attack. There is more and more debate whether we should limit government assistance to homeowners. The administration just came out with their Reforming America’s Housing Finance Market: A Report to Congress. The report acknowledges the advantages of homeownership: “…which has helped millions of middle class families […]
