6 Reasons Why Housing Prices are Headed Lower

Look for all prices for homes for sale Everett to fall. After 4 months of miniscule gains home prices flattened in October and I expect them to go much lower in 2010. There are many forces working to push down and limit demand while this happens.

1) The number one reason for prices to fall is NO JOBS. What does it take to get through to the idiots we have in Washington DC to see we are heading for a major crash if we don’t get folks back to work soon. The real unemployment rate in America is about 22%. Without a job you can’t pay your mortgage. If you can’t pay your mortgage then you lose your home. If you lose your home it floods the market with distressed homes  called “short sales” selling at lower and lower prices.

2) The shadow inventory of 1.7+ million foreclosed homes not yet on the market. There are 100’s of homes for sale Everett that are not on the market yet. These are called REO homes (REO is jargon for the inventory of bank owned homes) and many experts think the banks are holding on to them until the market recovers. Fat chance that it will recover if no one has a job to pay for a mortgage.

3) Mortgage Modification Programs (MMP) are not working. Right now because the federal government is supporting the banks by using TARP money the lenders really don’t have a reason to get serious about making the MMP work. And really how fair is it? If I pay my mortgage and my neighbor doesn’t. He goes to his lender and gets the lender to lower the mortgage principle (using my tax dollars) and interest rate. Why does he get the break and I don’t?

4) Option ARM’s are coming due at about 50,000 to 65,000 per month for the next 2 years. These are almost all upside down loans that will face huge increases in payments. With jobs uncertain there is no market to sell these homes. Many of these owners will simply walk away from their homes and leave the keys on the counter.

5) Interest rates will be going up and up soon. I expect mortgage rates to be in the mid 6% range by the end of 2010. As soon as the federal government stops buying mortgage backed securities the current subsided mortgage rates will increase.

6) Expiration of the First Time Home Buyer Credit at the end of April 2010. This credit has been robbing the future sales to bring to the present. It was never large enough to really entice anyone to buy who wasn’t going to buy anyway.

I have a simple way to improver the market for homes for sale Everett. Cut business taxes in half. Cut the capital gains tax in half.

Jim Johnson and comments are always welcome.

Everett Mortgage on Line

As America’s financial mess continues, everyone wants to know: What’s going on with Austin real estate values?

Local real estate agent, investor and educator Jay Carter says the local real estate market will get worse for sellers before it gets better. “Not since the oil and gas bust of the 1980s has Austin seen such a wonderful opportunity for Austin real estate buyers and investors,” Carter says. “For sellers, this is only going to get worse.”

Carter disagrees with many prominent local Austin real estate agents who are suggesting that home prices will keep rising. “They absolutely won’t,” says Carter, who has already spotted several listings across Austin where sellers have had to significantly cut their asking price. “The rules of Austin real estate are changing right before our eyes.”

Carter predicts further price declines and more foreclosures to occur well into 2009. “The real estate stock market will keep falling over the next several months and you’ll also start to notice average real estate prices falling in Austin either this winter or early next year.” The current median price of a home in Austin is $182,600 according to the Austin Board of Realtors.

“In economic cycles like this, everyone – from homeowners to hedge fund managers – will want to get out of debt and accumulate cash. This will lead to big discounts on cars, boats, furniture and even real estate,” Carter says. “You’re about to see this happen more and more.”

“The good news here is for future Austin real estate buyers. This will be an unbelievably good time to buy a home, but only if you do it right,” says Carter. “You must be well-qualified and know what you’re doing.”

On Saturday, November 1st, Carter will teach a brand new course for Austin real estate buyers entitled, The New Rules of Buying a Home in Austin. The class, which is based on today’s current economic downturn, will cover not only what is happening now but what’s likely to happen in the Austin real estate market over the next 1 to 2 years and how home buyers can reap the benefits.

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Austin Realtor Jay Carter’s
Predictions for Austin Real Estate

- Average real estate prices in Austin will drop even further for at least the next six months as the public continues to react to stock market declines.

- Austin area foreclosures will increase this winter and spring.

- Homeowners who think they’ll need to sell anytime soon should sell right now. The prospects for Austin real estate sellers will only get worse in 2009 and possibly even 2010.

- Not since Austin’s oil & gas crash of the 1980s has there been such a good time for Austin real estate buyers to find a fantastic bargain, due to the likelihood of further price cuts and still-low home loan interest rates.

Jay is available this week either as a morning show guest or for taped interviews to speak about:

- Current examples of real estate on the market in Austin today where sellers have already dramatically dropped their asking prices

- How Austin will experience a further decline in real estate prices within the next year, and most importantly, why it will happen

- This Saturday’s (11/1/08) seminar for home buyers, The New Rules of Austin Real Estate, which will be held at Austin Community College

For details: Contact Michele Kim Carter, public relations manager for LivingInAustin.com Real Estate, at 512-413-2253 or visit www.livinginaustin.com

The interest in buying foreclosure real estate, especially bank foreclosures, has always been high. People want to buy foreclosures, because this is one of the most profitable investments in real estate one can make. Foreclosure homes are real estate properties securing a loan that has not been paid for. Bank foreclosures are owned by the bank who has made the loan and who tries to sell the property in order to recover their money. Foreclosure investments are considered among the safest, because the prices of foreclosure real estate are usually below the market. Potential buyers of bank owned foreclosed properties deal directly with the lender when negotiating the price of the home they want to buy.

Banks that own foreclosure real estate properties sell them to recover the money they have lent to the original owners. Those interested in investing in bank foreclosures can find offers for foreclosure homes in lists of foreclosed properties made available for anyone who wants to buy foreclosures. Both real estate investors with a large portfolio and individual first-time buyers are interested in making foreclosure investments, because the properties categorized as foreclosure real estate come with lower prices than average on the real estate market. Getting significant discounts for bank foreclosures means the buyers are sure to make a profit if they sell the properties later on.

Foreclosure real estate is also on high demand with first-time buyers who look for the home of their dreams. Because they can only make a small investment in real estate, bank foreclosures are an ideal option for such buyers. Initial prices for foreclosure homes owned by the lender are usually negotiable, so those who want to buy foreclosures can close even better deals than they expect for the bank foreclosures they are interested in. When banks sell foreclosed properties, they finance a new mortgage for the new owner. With foreclosure investments, there are several contractual provisions that can be negotiated. Clever negotiation on foreclosure real estate can get the potential buyers lower interest rates or a low down payment.

Although the initial prices of certain bank foreclosures may seem higher than you expect, you should bear in mind that you can still save significantly by purchasing such properties. Prices for foreclosure homes are always below the market value of the respective properties, and this is why foreclosure investments cannot fail to bring you good profit. Moreover, the prices of foreclosed properties are negotiable, and lenders can prove fairly flexible when it comes to selling their foreclosure real estate. Being able to negotiate is essential for anyone who wants to buy foreclosures, as they can get better deals than they might expect for bank foreclosures.

By resorting to a listing service, both real estate investors and first-time individual buyers can locate attractive offers for bank foreclosures. Listings of foreclosure real estate include descriptive details about foreclosure homes, such as location, condition and number of bedrooms, and also information about prices and how to contact the banks who own the foreclosed properties. Staying up-to-date with the information included in listings of foreclosure real estate is essential for those who want to make profitable foreclosure investments. For those who want to buy foreclosures, the main advantage of accessing available lists of bank foreclosures is that they are extremely convenient and can help save a lot of time.

Bank foreclosures are definitely one of the best options for those who want to buy a home. The prices on the real estate market may scare potential buyers away, and this is why foreclosure real estate is a good investment. The prices for foreclosure homes are always below the market, and this makes them very attractive for both real estate investing companies and individual buyers. Foreclosed properties owned by banks are among the safest foreclosure investments. The whole process of locating and closing a deal for such foreclosure real estate is not complicated at all, as many people who have decided to buy foreclosures can testify.

Locating the best offers of bank foreclosures can result in closing a very good deal for any potential buyer. Foreclosure real estate is always available at bargain prices. Moreover, your ability to negotiate with owners of foreclosure homes can bring you even lower prices. This is why you should always be on the lookout for attractive foreclosed properties. Once you have decided to buy foreclosures, you should subscribe to a specialized listing service. Up-to-date lists of foreclosure real estate will certainly help you locate the best bank foreclosures and make very profitable foreclosure investments.

Top 10 Luxury Home Markets To Watch for Price Increases or Reductions

The Unique Homes Magazine has listed 25 luxury home markets to watch in 2007 in its January issue. According to the Unique Homes report the 25 luxury markets will indicate where the luxury real estate market is heading to. These markets along with features that make them stand out from the rest are worth watching out for.

The following is a brief report on the top 10 luxury home markets to watch for price increases or reductions in 2007.

1. Annapolis, Maryland. The waterfront city located on Chesapeake Bay offers excellent boating and affordable prices compared to Washington’s luxury enclaves. With Washington and Baltimore within reasonable commute, this city is highly desirable.

2. Asheville, North Carolina. An eclectic ambiance and low-key lifestyle attracts people to Asheville which continues to remain one of the hottest places for luxury home buyers.

3. Aspen, Colorado. From a ski enclave this luxury market has grown into a platinum location. With its four-season appeal and restrictive zoning policies, Aspen is still a highly-sought after destination.

4. Atlanta, Georgia. The city offers several new upscale communities, numerous lifestyle amenities, retreats and much sought after waterfront luxury homes.

5. Austin, Texas. A strong real estate market that saw record gains in 2006, the reputable University of Texas, the scenic lakes and the great music attracts buyers to this hill country.

6. Bellevue/Medina, Washington. With prices going up at 28 percent, the market has still not peaked and several upscale neighborhoods are available at a lower price range when compared to other markets.

7. Beverly Hills, California. One of the top ranked luxury markets that is perpetually in demand, Beverly Hills continues to be untarnished and idolized as the Mecca for luxury. Hollywood Hills is currently a hot market for buyers.

8. Idaho. The growing resort markets in the state garner attention for the state that is making its presence felt in the luxury home market.

9. Jupiter, Florida. The boom has arrived here after Tiger Woods’ purchase of a 10-acre estate for $38 m. The market continues to surge on this exclusive island.

10. Manhattan Uptown, downtown, midtown. The luxury market is upbeat with record sales of more than $5 m in 2006 accelerated by Wall Streeters. Co-ops and town houses are favorites among buyers here.

If you are interested in buying or selling a home, condo or any other type of real estate in any of these markets, be sure to seek out the services of a real estate agent to advise you about current local market conditions.