Tuesday, February 20, 2007
Home sales, prices fall - Is this the end or beginning?
So let's take a look at what is going on. Now first, the 4th quarter was not the best quarter around for real estate but it has been a tremendous last few years. So let's look at things:
- The article states that 40 states declined. When you read a little deeper the median home price fell in 49 percent of 149 metro areas. That also would mean in 51% of metro areas the price did not decline. It depends on whether you are a glass half full or glass half empty person.
- Nationaly sales decline by 10.1%. So we came off a record year of sales and the number of transactions was done. That is not scary nor impressive if you ask me.
- The median price fell 2.7% according to this article. I have read others that state it held. Let's say they are right. Those who wish their World Com, Enron, or Insert Your Bust Stock here, only fell 2.7% please raise your hand! I mean seriously let's think about this. The average homeowner who stays in their home 5-7 years has nothing to fear. Enron & World Com Stock owners cannot say the same thing.
- 73 metro areas had a decline, 71 had increases, 5 unchanged in median value. So that means there were plenty of people still going up in value. The overall market is basically unchanged.
If you really look at things real estate is still a very "able" investment to quote Gary Keller, author of Millionaire Real Estate Investor. It is liveable, stable, & rentable. So don't bail out of your real estate don't panic and know that there is some adjustment occuring.
As usual, you decide the truth!
You be the judge of the real estate market!
Labels: home prices, House market, house values, Housing Market, loans, market bust, median home value, Real Estate Fall, real estate market, real estate prices, values of homes
Saturday, February 17, 2007
Foreclosures jump 35% - Can this be true?
- First of all the 35% increase is across the nation and compares to the last December. Now think about this for just a minute. Last December was still a fantastic record year for Real Estate. So a 35% increase in foreclosures is compared with a year that was one of the best years on record for all real estate transactions and foreclosures will at an all time low last year.
- The number of foreclosures top 109,000 for the month of December. Now what is conveniently left off is how many transactions went through that month. Percentages don't always tell the entire story. In fact the December number of 109,000 was a 9% decrease but that doesn't make headlines now does it.
- The foreclosure data being quoted includes all states of foreclosure. Defaults are included in this number. A default can occur as soon as a person is 1 day late on their mortgage. More than like the number is after someone is 30 days late. They do not state this nor are the numbers separated out. People can run into tough times and bring themselves current from missing 1, 2, or even 3 payments. This number is not included in their statistics.
The median value of homes finished up in 2006 once again. It is true that there are going to be foreclosures but that can happen in any market. The areas of the country like Detroit that are experiencing massive layoffs from the auto industry are going to cause foreclosures. We challenge you to look beyond percentages and study why the numbers are occuring. Foreclosures are a sign that people need help and we should make sure to find out why they need help before jumping to conclusions about the value of real estate.
As usual, you decide the truth!
You be the judge of the real estate market!
Labels: bank owned, buyers market, foreclosure, home prices, House market, house values, Housing Market, loans, median home value, mortgage rates, Real Estate Fall, real estate market, real estate prices, reo
