HOUSING BUYERS MARKET - - at least for a while
How does one really know when to buy or sell real estate? There are many factors involved, and without a crystal ball, you can't be 100% certain! Every day, the media publicizes a lot of confusing information, and it is very difficult for the average person to know what it really means.
We all know that during all of 2009 and most of 2008, in most areas of the country, housing prices have fallen, in most areas by more than 20% since the height of the market. However, many people tend to forget that the real estate market has experienced these down cycles before, albeit usually not as severely. What is unique about this "cycle"is that the dramatic drop in prices has been accompanied by record low mortgage rates! While one would logically think that would create a buyers market, the combination of high joblessness and under-employment, combined with the lower stock prices, and extraordinarily tight credit market (making mortgage loans much more difficult to get), has caused buyers market pricing conditions but neutral market market conditions. The number of buyers has been inconsistent - especially the number of qualified buyers. Buyers realize that they do not have to act with the urgency that they did when the market was higher because there are very few bidding wars out there. It took sellers quite a while to realize, or at least accept the fact that they were not going to be able to sell their houses at the pricing when the market peaked, and thus many homes either did not sell, or sold only after numerous price adjustment (PC way of saying "price drops"), and the number of days a listed home remained on the market increased dramatically.
Qualified buyers - - those with good credit (credit scores of 700+), at least 20% to put down, and sufficient demonstrable income - - got some "great deals." Lending institutions received billions to "bail" them out, but very little of this money went to loosening credit. Most of that money simply made the banks more profitable. The typical American's credit score was "arbitrarily" lowered because of how it is calculated, and the impact that most credit card companies lower the vast majority of individuals credit limits. This caused the credit ratios to change, and thus credit scores to be lowered. This, in turn, tightened the mortgage market even further, because individuals with seemingly good credit, saw their credit scores lowered because of bank policy that had nothing to do with them specifically. The continuous of this "circle of circumstances" was that this policy created even fewer qualified buyers, thus causing additional havoc in the housing market.
The fear of the recession and the joblessness rate created many potential buyers to shy away from house hunting. The Federal first-time housing credit, combined with the extension and enhancement of the program to cover many that have held homes for more than five years, has helped bring out some additional buyers. Since this program is, however an expiring one, scheduled to expire in mid-2010 (must be in contract by Aprkil 30 and close by June 30), there is an added incentive to buy a home. The indication that the recession has or is close to coming to an end, has created somewhat of an increase in consumer confidence, as has the general feeling that the joblessness rate has or neared its top, and should come down during 2010, should increase home buyin g in the next few months. The government has also indicated that it will exert pressure on lending institutions to make consumer loans, including mortgages, more readily available, which should also be a plus.
Therefore, with record low mortgage rates, low home prices, and a slight easing of the mortgage loan availability, combined with the tax incentive, the next few months should provide a limited window for qualified home buyers to take advantage of a great circumstance. Obviously, as the economy increases, and mortgage rates rise, and markets stabilize, the cost of home ownership will increase. A serious home buyer should take advantage of these conditions, before we return to less favorable buying conditions. Remember that the real estate market is cyclical, and there may not be a better time to buy a house for many years than there is today!
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Enjoy the Home of the RICH IDEAS, + RICH BRODY'S TAKE, w/ Blogs about RE, negotiations, finance, etc., Leadership Planning, politics, etc. While there are many points of view, this blog is intended to "cut through the spin," and provide a unique, innovative and provocative insight into current issues. The intent of the blog is to be updated several times per week. Real estate info: http://PortWashingtonLongIslandRealEstate.com and the PLAN2LEAD website: http://plan2lead.net
Showing posts with label housing. Show all posts
Showing posts with label housing. Show all posts
Monday, December 14, 2009
Monday, December 7, 2009
HOW ECONOMIC DATA & THE HYPE CONFUSES!
HOW ECONOMIC DATA & THE HYPE CONFUSE
I am sure that many of you have heard that gold was a great investment, and that investors like gold as a hedge against bad economic news. Since gold is now experiencing its best year since its last peak in January 1980, it is a good time to review the reality. On December 3rd, gold reached a record high, exceeding $1,225 an ounce. A gold investor who purchased gold during the last peak at $850 an ounce, has seen a return of approximately 44 percent. To put that into perspective, if one reinvested dividends, the Standard & Poor 500 stock index multiplied approximately 22 times. Even Treasury vehicles rose more than ten times, and interest-bearing bank accounts (not including Certificate of Deposits) almost doubled! When one factors in inflation, gold investors are still VERY far away from breaking even on their investment! Am analysis of gold investing leads one ro realize that gold is NOT a good long-term investor, and that the security of owning something tangible for "peace of mind" can be very costly.
Similarly, the originally cost of the TARP bail-out has been recalculated because many banks have repaid the loans much earlier than forecast. The cost of the TARP bailout has therefore been recalculated downward by approximately $200 billion (over 10years). The Government has actually made money on many of the TARP loans repaid. Does anyone think they know why these companies are repaying early? Could it have anything to do with not wanting to have the government have the "leverage" over them?
Several months, the politicians and the media were celebrating what they referred to as landmark legislation regulating the credit card companies. However, the law that was passed would not take place for nine months after enacted. So what have the banks done? They've configure themselves to make significant moves ahead of the deadline, so they are in the most advantageous position possible. Many of the banks have raised their interest rates; many others have arbitrarily and across the board lowered credit limits. And to make the system even more ludicrous, the way credit scores are calculated, the banks lowering of credit limits causes many people's credit scores (FICO, etc.) to go down!
So, what did the banks do with the monies they received to bail them out? Wasn't the public led to believe that it was necessary to bail out the banks, so that credit would be available for purchases, mortgages, etc? Well, what most of the banks did was use the funds to make their own bottom line look better, while tightening credit more and more!
President Obama called a huge jobs summit, which appeared to accomplish less than a typical jobs fair! The President then made a speech that addressing jobs was a priority (then where does it go on the priority list with his other stated priorities?), but that it needed to be a combined government- private sector approach, because the government has to be mindful of the growing US deficit and its inherent problems, and that the government isn 't in a position to spend all the needed funds. Yet, if this is a priority, it must be treated as such! Since Mr. Obama took office, the U.S. deficit has grown from a ridiculously high $400 Billion, which he inherited, to over $1.4 Trillion today. We have been told that the Afghanistan surge will cost $30 billion (but that number is only the additional funds we are told will be spend over the next 18 months). Will anyone be surprised to see that number grow exponentially! On the Sunday morning shows, Secretary of Defense Gates and Secretary of State Clinton kept saying that basically there would be a slight first pull-out of some troops, beginning in July 2011! Haven't we heard before that there was "light at the end of the tunnel," as LBJ used to say?
Beware the jobless/ unemployment figures! I am always wary when the government produces "better than expected" figures, right before the President's big speech tomorrow night on jobs. Factoring in those that are counted, those that are working part-time instead of full-time, those that have given up looking, and those who have, out of desperation taken significantly lower paying positions, the joblessness and employment/ unemployment issues should the U.S.' number 1 priority! The U.S. must seriously address this issue for our economy to fully recover.
Are things a little better? Yes, I don't think we are getting worse, and I do believe there will be improvement. It is rumored that the Federal Reserve is already discussing when (not if) they will begin to raise interest rates. So, the one thing that any consumer who is in a position to - - who can afford to - - should do, is seriously consider purchasing real estate now! Mortgage rates are historically low, home prices are low, and qualified individuals with reasonable credit who can put 20% down, can get a mortgage on a properly priced home! Those considering it, but waiting are most likely going to be very disappointed when sometime next year, mortgage rates go up, housing prices begin to rise, and the Housing Credit expires! This may be the best real estate buying opportunity in some time!
Nobody can foresee the future, and nobody can pinpoint the precise low point of a market. Those than panicked and sold off stocks at their low, and did not step in when the Dow was about 8400 because they were waiting for the low, missed an opportunity to take some advantage. The ideal stock-buying strategy over time has always been dollar-cost averaging. That strategy has worked in up markets, down markets, and do-nothing stock markets. It takes dicipline, but averages out purchase prices so that the market swings are not catastrophes!
Patients, being wary of the hype, and understanding that all markets are cyclical is the best long-term strategy. Nobody ever makes a profit unless they sell, so one should be much more interested in a long-term, successful approach.
FOLLOW ME ON TWITTER: @rgbrody (www.twitter.com/rgbrody)
READ MY BLOGS: http://tinyurl.com/rgbstake
MY CONSULTING WEBSITE: http://tinyurl.com/rgbcons
MY Real Estate Website: http://tinyurl.com/rgb242
I am sure that many of you have heard that gold was a great investment, and that investors like gold as a hedge against bad economic news. Since gold is now experiencing its best year since its last peak in January 1980, it is a good time to review the reality. On December 3rd, gold reached a record high, exceeding $1,225 an ounce. A gold investor who purchased gold during the last peak at $850 an ounce, has seen a return of approximately 44 percent. To put that into perspective, if one reinvested dividends, the Standard & Poor 500 stock index multiplied approximately 22 times. Even Treasury vehicles rose more than ten times, and interest-bearing bank accounts (not including Certificate of Deposits) almost doubled! When one factors in inflation, gold investors are still VERY far away from breaking even on their investment! Am analysis of gold investing leads one ro realize that gold is NOT a good long-term investor, and that the security of owning something tangible for "peace of mind" can be very costly.
Similarly, the originally cost of the TARP bail-out has been recalculated because many banks have repaid the loans much earlier than forecast. The cost of the TARP bailout has therefore been recalculated downward by approximately $200 billion (over 10years). The Government has actually made money on many of the TARP loans repaid. Does anyone think they know why these companies are repaying early? Could it have anything to do with not wanting to have the government have the "leverage" over them?
Several months, the politicians and the media were celebrating what they referred to as landmark legislation regulating the credit card companies. However, the law that was passed would not take place for nine months after enacted. So what have the banks done? They've configure themselves to make significant moves ahead of the deadline, so they are in the most advantageous position possible. Many of the banks have raised their interest rates; many others have arbitrarily and across the board lowered credit limits. And to make the system even more ludicrous, the way credit scores are calculated, the banks lowering of credit limits causes many people's credit scores (FICO, etc.) to go down!
So, what did the banks do with the monies they received to bail them out? Wasn't the public led to believe that it was necessary to bail out the banks, so that credit would be available for purchases, mortgages, etc? Well, what most of the banks did was use the funds to make their own bottom line look better, while tightening credit more and more!
President Obama called a huge jobs summit, which appeared to accomplish less than a typical jobs fair! The President then made a speech that addressing jobs was a priority (then where does it go on the priority list with his other stated priorities?), but that it needed to be a combined government- private sector approach, because the government has to be mindful of the growing US deficit and its inherent problems, and that the government isn 't in a position to spend all the needed funds. Yet, if this is a priority, it must be treated as such! Since Mr. Obama took office, the U.S. deficit has grown from a ridiculously high $400 Billion, which he inherited, to over $1.4 Trillion today. We have been told that the Afghanistan surge will cost $30 billion (but that number is only the additional funds we are told will be spend over the next 18 months). Will anyone be surprised to see that number grow exponentially! On the Sunday morning shows, Secretary of Defense Gates and Secretary of State Clinton kept saying that basically there would be a slight first pull-out of some troops, beginning in July 2011! Haven't we heard before that there was "light at the end of the tunnel," as LBJ used to say?
Beware the jobless/ unemployment figures! I am always wary when the government produces "better than expected" figures, right before the President's big speech tomorrow night on jobs. Factoring in those that are counted, those that are working part-time instead of full-time, those that have given up looking, and those who have, out of desperation taken significantly lower paying positions, the joblessness and employment/ unemployment issues should the U.S.' number 1 priority! The U.S. must seriously address this issue for our economy to fully recover.
Are things a little better? Yes, I don't think we are getting worse, and I do believe there will be improvement. It is rumored that the Federal Reserve is already discussing when (not if) they will begin to raise interest rates. So, the one thing that any consumer who is in a position to - - who can afford to - - should do, is seriously consider purchasing real estate now! Mortgage rates are historically low, home prices are low, and qualified individuals with reasonable credit who can put 20% down, can get a mortgage on a properly priced home! Those considering it, but waiting are most likely going to be very disappointed when sometime next year, mortgage rates go up, housing prices begin to rise, and the Housing Credit expires! This may be the best real estate buying opportunity in some time!
Nobody can foresee the future, and nobody can pinpoint the precise low point of a market. Those than panicked and sold off stocks at their low, and did not step in when the Dow was about 8400 because they were waiting for the low, missed an opportunity to take some advantage. The ideal stock-buying strategy over time has always been dollar-cost averaging. That strategy has worked in up markets, down markets, and do-nothing stock markets. It takes dicipline, but averages out purchase prices so that the market swings are not catastrophes!
Patients, being wary of the hype, and understanding that all markets are cyclical is the best long-term strategy. Nobody ever makes a profit unless they sell, so one should be much more interested in a long-term, successful approach.
FOLLOW ME ON TWITTER: @rgbrody (www.twitter.com/rgbrody)
READ MY BLOGS: http://tinyurl.com/rgbstake
MY CONSULTING WEBSITE: http://tinyurl.com/rgbcons
MY Real Estate Website: http://tinyurl.com/rgb242
Tuesday, November 24, 2009
HOUSING NEWS UPDATE
The most recent housing report showed that sales for October 2009 were up 10.1% over October 2008. While that is certainly promising news, it must be considered in light of a few factors. The first factor was, of course, that October 2008 numbers were so dismal that even with an increase, there is plenty of room for improvement. Then, we must remember that some closings last month occurred as a result of the First Time Housing Credit, and the uncertainty at that time over whether it would be extended (remember it was originally set to expire at end of November). The continuation of historically low mortgage rates has certainly also helped. In addition, while sales were up, the average price of a house sold last month versus a year before is down, so, in other words, houses are still selling for less than in the past.
The good news are indications are that the worst of the recession is probably past us, consumer confidence seems to have improved slightly, mortgage rates should remain low for the foreseeable future (and hopefully the government will apply pressures on lenders to lend!), home prices are more affordable, the Home buying credit has been BOTH extend and enhanced, and most economists are calling for the U.S. economy to improve somewhat throughout 2010. The less-happy news is the high joblessness rate, the uncertainty in the economy, less than stellar public consumer confidence, and a seemingly prevailing attitude that "there is no rush" to do anything, and the overall wait-and-see attitude.
We have gone from a decade of a "seller's market" in the housing market, to a mixed market, to a buyer's market (where unfortunately NOT enough buyers are taking advantage - - - either being unwilling, afraid, or unable to). The real estate market has always been cyclical, and this market is the same in that way. We are probably at or near the bottom of the market now, and 2010 should probably see the beginning of the recovery. Those in a position to take advantage should do so now, because the combination of tax advantages, low prices and low mortgage rates have brought the true cost of home purchasing down significantly.
The industry and those interested in having a sound and robust housing market should implore their elected officials to address the most pressing economic issues now --- joblessness (and job creation), consumer confidence, responsible economic policies, and continued incentives that benefits consumers instead of just large corporations!
FOLLOW ME ON TWITTER: @rgbrody (www.twitter.com/rgbrody
CHECK OUT MY REAL ESTATE SITE: http://tinyurl.com/pwlire
LEARN WHAT A CONSULTING PRO CAN DO FOR YOU: http://tinyurl.com/rgbcons
FOLLOW MY BLOG UPDATES (updated several times each week):
The most recent housing report showed that sales for October 2009 were up 10.1% over October 2008. While that is certainly promising news, it must be considered in light of a few factors. The first factor was, of course, that October 2008 numbers were so dismal that even with an increase, there is plenty of room for improvement. Then, we must remember that some closings last month occurred as a result of the First Time Housing Credit, and the uncertainty at that time over whether it would be extended (remember it was originally set to expire at end of November). The continuation of historically low mortgage rates has certainly also helped. In addition, while sales were up, the average price of a house sold last month versus a year before is down, so, in other words, houses are still selling for less than in the past.
The good news are indications are that the worst of the recession is probably past us, consumer confidence seems to have improved slightly, mortgage rates should remain low for the foreseeable future (and hopefully the government will apply pressures on lenders to lend!), home prices are more affordable, the Home buying credit has been BOTH extend and enhanced, and most economists are calling for the U.S. economy to improve somewhat throughout 2010. The less-happy news is the high joblessness rate, the uncertainty in the economy, less than stellar public consumer confidence, and a seemingly prevailing attitude that "there is no rush" to do anything, and the overall wait-and-see attitude.
We have gone from a decade of a "seller's market" in the housing market, to a mixed market, to a buyer's market (where unfortunately NOT enough buyers are taking advantage - - - either being unwilling, afraid, or unable to). The real estate market has always been cyclical, and this market is the same in that way. We are probably at or near the bottom of the market now, and 2010 should probably see the beginning of the recovery. Those in a position to take advantage should do so now, because the combination of tax advantages, low prices and low mortgage rates have brought the true cost of home purchasing down significantly.
The industry and those interested in having a sound and robust housing market should implore their elected officials to address the most pressing economic issues now --- joblessness (and job creation), consumer confidence, responsible economic policies, and continued incentives that benefits consumers instead of just large corporations!
FOLLOW ME ON TWITTER: @rgbrody (www.twitter.com/rgbrody
CHECK OUT MY REAL ESTATE SITE: http://tinyurl.com/pwlire
LEARN WHAT A CONSULTING PRO CAN DO FOR YOU: http://tinyurl.com/rgbcons
FOLLOW MY BLOG UPDATES (updated several times each week):
http://tinyurl.com/rgbstake
The good news are indications are that the worst of the recession is probably past us, consumer confidence seems to have improved slightly, mortgage rates should remain low for the foreseeable future (and hopefully the government will apply pressures on lenders to lend!), home prices are more affordable, the Home buying credit has been BOTH extend and enhanced, and most economists are calling for the U.S. economy to improve somewhat throughout 2010. The less-happy news is the high joblessness rate, the uncertainty in the economy, less than stellar public consumer confidence, and a seemingly prevailing attitude that "there is no rush" to do anything, and the overall wait-and-see attitude.
We have gone from a decade of a "seller's market" in the housing market, to a mixed market, to a buyer's market (where unfortunately NOT enough buyers are taking advantage - - - either being unwilling, afraid, or unable to). The real estate market has always been cyclical, and this market is the same in that way. We are probably at or near the bottom of the market now, and 2010 should probably see the beginning of the recovery. Those in a position to take advantage should do so now, because the combination of tax advantages, low prices and low mortgage rates have brought the true cost of home purchasing down significantly.
The industry and those interested in having a sound and robust housing market should implore their elected officials to address the most pressing economic issues now --- joblessness (and job creation), consumer confidence, responsible economic policies, and continued incentives that benefits consumers instead of just large corporations!
FOLLOW ME ON TWITTER: @rgbrody (www.twitter.com/rgbrody
CHECK OUT MY REAL ESTATE SITE: http://tinyurl.com/pwlire
LEARN WHAT A CONSULTING PRO CAN DO FOR YOU: http://tinyurl.com/rgbcons
FOLLOW MY BLOG UPDATES (updated several times each week):
The most recent housing report showed that sales for October 2009 were up 10.1% over October 2008. While that is certainly promising news, it must be considered in light of a few factors. The first factor was, of course, that October 2008 numbers were so dismal that even with an increase, there is plenty of room for improvement. Then, we must remember that some closings last month occurred as a result of the First Time Housing Credit, and the uncertainty at that time over whether it would be extended (remember it was originally set to expire at end of November). The continuation of historically low mortgage rates has certainly also helped. In addition, while sales were up, the average price of a house sold last month versus a year before is down, so, in other words, houses are still selling for less than in the past.
The good news are indications are that the worst of the recession is probably past us, consumer confidence seems to have improved slightly, mortgage rates should remain low for the foreseeable future (and hopefully the government will apply pressures on lenders to lend!), home prices are more affordable, the Home buying credit has been BOTH extend and enhanced, and most economists are calling for the U.S. economy to improve somewhat throughout 2010. The less-happy news is the high joblessness rate, the uncertainty in the economy, less than stellar public consumer confidence, and a seemingly prevailing attitude that "there is no rush" to do anything, and the overall wait-and-see attitude.
We have gone from a decade of a "seller's market" in the housing market, to a mixed market, to a buyer's market (where unfortunately NOT enough buyers are taking advantage - - - either being unwilling, afraid, or unable to). The real estate market has always been cyclical, and this market is the same in that way. We are probably at or near the bottom of the market now, and 2010 should probably see the beginning of the recovery. Those in a position to take advantage should do so now, because the combination of tax advantages, low prices and low mortgage rates have brought the true cost of home purchasing down significantly.
The industry and those interested in having a sound and robust housing market should implore their elected officials to address the most pressing economic issues now --- joblessness (and job creation), consumer confidence, responsible economic policies, and continued incentives that benefits consumers instead of just large corporations!
FOLLOW ME ON TWITTER: @rgbrody (www.twitter.com/rgbrody
CHECK OUT MY REAL ESTATE SITE: http://tinyurl.com/pwlire
LEARN WHAT A CONSULTING PRO CAN DO FOR YOU: http://tinyurl.com/rgbcons
FOLLOW MY BLOG UPDATES (updated several times each week):
http://tinyurl.com/rgbstake
Friday, November 6, 2009
SORTING THROUGH THE ECONOMIC NEWS
Last night, news media were reporting that they anticipated the jobless rate to rise slightly to 9.9%. At around the same time, it was announced that President Obama would today sign into law a bill that would: (1) extend unemployment benefit eligibility by up to an additional 20 weeks (meaning to a maximum of 99 weeks, if eligible- the maximum is for those 26 states where unemployment exceeds 8.5%); (2)extend and enhance the New Homebuyers Credit from November 30th until June 30th (This bill requires going into contract by April 30th and closing by June 30th). This bill will now NOT only provide first time buyers a tax credit of up to $8,000, but would extend to homeowners who've lived in their present home at least five of the last eight years (at a credit of up to $6,500); and (3) a modification of the law for businesses that have had losses to offset gains for more years back than the present law permits, thus hopefully freeing up cash flow for corporations.
Early this morning, the official joblessness rate was announced as a higher than anticipated 10.2%, the highest unemployment rate in 26 years. What is even more disconcerting is that this figure does not account for those no longer seeking employment, or working part-time, or in much lower positions. In addition, the average US worker's work-week is now averaging approximately 33 hours per week, one of the lowest averages in many years. One would therefore expect that the stock market would have a "correction" from yesterday's increase, and stock market indexes did indeed open sharply lower this morning.
What this means is that our political leaders need to seriously and immediately address the most urgent economic condition facing this nation today - - - unemployment and under- employment! While I believe the bill being signed today is both necessary and helpful, we now need to apply pressure on elected officials to use some "common sense solutions" to address both employment and other economic issues. Unfortunately, it is uncommon for political leaders to use "common sense." (Is a political leader using common sense an oxymoron?)
When I consult to a business, organization, or individual, I explore alternatives and explain all possible ramifications of actions or inactions. Isn't it about time our politicians did the same thing?
MY CONSULTING WEBSITE: http://tinyurl.com/rgbcons
MY REAL ESTATE WEBSITE: www.portwashingtonlongislandhouses.com
FOLLOW ME ON TWITTER: @rgbrody (www.twitter.com/rgbrody)
THIS BLOG: http://tinyurl.com/rgbstake
MY R.E. BLOG: http://tinyurl.com/rgbreb
Early this morning, the official joblessness rate was announced as a higher than anticipated 10.2%, the highest unemployment rate in 26 years. What is even more disconcerting is that this figure does not account for those no longer seeking employment, or working part-time, or in much lower positions. In addition, the average US worker's work-week is now averaging approximately 33 hours per week, one of the lowest averages in many years. One would therefore expect that the stock market would have a "correction" from yesterday's increase, and stock market indexes did indeed open sharply lower this morning.
What this means is that our political leaders need to seriously and immediately address the most urgent economic condition facing this nation today - - - unemployment and under- employment! While I believe the bill being signed today is both necessary and helpful, we now need to apply pressure on elected officials to use some "common sense solutions" to address both employment and other economic issues. Unfortunately, it is uncommon for political leaders to use "common sense." (Is a political leader using common sense an oxymoron?)
When I consult to a business, organization, or individual, I explore alternatives and explain all possible ramifications of actions or inactions. Isn't it about time our politicians did the same thing?
MY CONSULTING WEBSITE: http://tinyurl.com/rgbcons
MY REAL ESTATE WEBSITE: www.portwashingtonlongislandhouses.com
FOLLOW ME ON TWITTER: @rgbrody (www.twitter.com/rgbrody)
THIS BLOG: http://tinyurl.com/rgbstake
MY R.E. BLOG: http://tinyurl.com/rgbreb
Tuesday, November 3, 2009
STAY INSISTENT RE HOME CREDIT
Ever since Senator Reid's office announced that the Senate would be extending and enhancing the 1st Time Homebuyers Credit, there has been much less "buzz" around stating the urgency of doing that. My fear is that we are being lulled into apathy and the "it's going to happen" mode, while politicians play typical political games. The present credit is scheduled to expire November 30th, and we are already entering into the traditional slow season for real estate (just what we need on top of the present real estate reality). The market and the economy needs further jump starting, and this credit is one of the few government stimuli out there that goes directly to the American consumer. Remember that a healthy real estate market not only helps realtors, buyers and sellers, buit also helps mortgage brokers and banks, building trades including laborers and suppliers, builders, rtc. This credit is an example of the "trickle up" theory at it's best!
Realtors, bankers, homeowners, homebuyers, consumers, building trades, etc. must contact their representatives and senators, and let then know, that we want and need action NOW! Every day without this extention in place hurts the marketplace.
This extension should be a "no-brainer." Unfortunately, many politicians are just that - - politicians who are constantly running, instead of statesman who are governing. Tell your politicians that we want and need statesman NOW, and we will demonstrate that at the polls. This is NOT a Republican, Democrat, Conservative or Liberal issue - - this is an issue of helping to repair and mend our economy. Tell them all to do it NOW!
Follow me on Twitter: @rgbrody
My Real Estate Blog: www.portwashingtonlongislandhouses.activerain.com
My RGB's TAKE Blog: http://tinyurl.com/rgbstake
My Real Estate Website: www.portwashingtonlongislandhouses.com
My Consulting Website: http://tinyurl.com/rgbcons
Realtors, bankers, homeowners, homebuyers, consumers, building trades, etc. must contact their representatives and senators, and let then know, that we want and need action NOW! Every day without this extention in place hurts the marketplace.
This extension should be a "no-brainer." Unfortunately, many politicians are just that - - politicians who are constantly running, instead of statesman who are governing. Tell your politicians that we want and need statesman NOW, and we will demonstrate that at the polls. This is NOT a Republican, Democrat, Conservative or Liberal issue - - this is an issue of helping to repair and mend our economy. Tell them all to do it NOW!
Follow me on Twitter: @rgbrody
My Real Estate Blog: www.portwashingtonlongislandhouses.activerain.com
My RGB's TAKE Blog: http://tinyurl.com/rgbstake
My Real Estate Website: www.portwashingtonlongislandhouses.com
My Consulting Website: http://tinyurl.com/rgbcons
Thursday, October 29, 2009
Wednesday, October 28, 2009
It's Important to Extend & Expand First-time Homebuyers Credit!
As always, politicans are endlessly debating and posturing regarding the extention of the First Time Home Buyer's Credit, presently scheduled to expire on November 30th. It is interesting that there is still no extention, considering that most experts credit this Credit with reinvigorating a badly sagging real estate market. Nationally, it is estimated that home prices have now come back- to 2003 prices. The third quarter of 2009 actually showed an increase in sales, in most parts of the country.
However, there is still much uncertainty in today's economy. Polls show consumer confidence has not yet been restored, and that the major concerns are the recession and job security (high joblessness rate). Historically, a healthy housing market is essential to a properly functioning economy. While the stock market has come back more than 25% from its recent low, it is still far below the level of a couple of years ago. The extention of the housing credit is an effective way to keep the housing market stable.
At this time, we not only need an extention of the 1st Time Housing Credit, but an expansion of the program, so that more individuals are covered. Items that should be expanded include: Income requirements (allowable income should be increased); Broader, looser definition of 1st time Buyer should be utilized; Partial Credit should be considered for anyone purchasing more expensive house; etc.
I urge everyone to contact their elected officials as soon as possible, and urge them to both extend and expand the Home Buyers Credit.
Follow me on Twitter at: @rgbrody--- or www.twitter.com/rgbrodyAdditional Real Estate Blogs Available at: www.portwashingtonlongislandhouses.activerain.com
Tuesday, October 27, 2009
HOUSING MARKET UPDATE
According to data released today, housing sales have now risen in the US for three months in a row. Home prices in most areas have also stopped their decline, and in most areas are nudging upward. Many factors are probably responsible for this including: the 1st time buyers credit; low mortgage interest rates; polls showing slight improvement in consumer confidence regarding the economy; economic projections for the worst of the recession to be ending in either the 1st or 2nd quarter of 2010; a slight increase in availability of mortgage money; an improvement in stock market performance; etc.
However, not all areas of the country have seen the same trend. Real estate marketing and sales remains an entity peculiar to local areas. This means that one community may see its real estate market rebound before another, just as the drop in the market started in certain areas before others.
We are entering into a period where there may never be a better time to purchase a house. Of course, only those who are somewhat financially secure, with good credit, will be able to take advantage of this. And the high joblessness rate combined with little optimism on that front in the short-term, have created the major stumbling block to the housing market recovery.
The most important way to help the housing market is to lower the joblessness rate. Those truly interested in a timely economic recovery should urge our political leaders to make their #1 priority!If you interested in further discussion about housing or any aspect of real estate, please visit my real estate blog at: www.portwashingtonlongislandhouses.activerain.com, or my Real Estate website: www.portwashingtonlongislandhouses.com.
Info on my other businesses and services can be found at: www.rgbconsults.weebly.com
Friday, October 23, 2009
Today's Real Estate Market
Everyone has an opinion about the real estate market, and what affects sales and prices. A historic view of the housing market indicates that real estate is cyclical, and while the decrease in prices has been large, it is by no means the first time we have had a market downturn. Adverse economic conditions impact the real estate market. Amongst the causes are: inflation; recession; mortgage interest rates; ease of acquiring a mortgage; stock market factors; tax incentives; employment/ job security; and consumer confidence in the overall economy.
Today, we are in a market where many of the above listed situations are working together and keeping the real estate market down. However, probably the most important factor in terms of there being a true turnaround is the public's confidence in job security. Polls/ surveys indicate that the public confidence in job security today is at or near an all-time low. The good sign, however, is that recent corporate earnings reports for the third quarter have been better than most expected. If the news remains promising, there should be a gradual beginning of the recreation of jobs, and the joblessness rate should decline.
Today's 9.8% unemployment rate combined with what's considered the true joblessness rate of approximately 18% has created a wait-and-see attitude among many potential buyers. The government's First Time Buyer's Credit, scheduled to expire at the end of November, helped the real estate market in the last three or four months, but there is presently an uncertainty as to whether or not the government will take any steps to extend this successful program.
Please read my extensive real estate blogs at: www.portwashingtonlongislandhouses.activerain.com, for an analysis and real estate market point-of-view. Also feel free to go to my real estate website at: www.portwashingtonlongislandhouses.com for lots of informative information and data.
Today, we are in a market where many of the above listed situations are working together and keeping the real estate market down. However, probably the most important factor in terms of there being a true turnaround is the public's confidence in job security. Polls/ surveys indicate that the public confidence in job security today is at or near an all-time low. The good sign, however, is that recent corporate earnings reports for the third quarter have been better than most expected. If the news remains promising, there should be a gradual beginning of the recreation of jobs, and the joblessness rate should decline.
Today's 9.8% unemployment rate combined with what's considered the true joblessness rate of approximately 18% has created a wait-and-see attitude among many potential buyers. The government's First Time Buyer's Credit, scheduled to expire at the end of November, helped the real estate market in the last three or four months, but there is presently an uncertainty as to whether or not the government will take any steps to extend this successful program.
Please read my extensive real estate blogs at: www.portwashingtonlongislandhouses.activerain.com, for an analysis and real estate market point-of-view. Also feel free to go to my real estate website at: www.portwashingtonlongislandhouses.com for lots of informative information and data.
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