Archive for the ‘US real estate’ Category

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Generational real estate selling and other minsinformation.

April 28, 2011

We live in a time when people want quick answers and quick resolutions to all their questions. How many times a day do you see articles with “Five ways to Happiness” or “Seven steps to selling your home”? Here’s a fact: there aren’t any quick or fast steps to doing anything. It’s just the use of a catch phrase to get your attention. Imagine how great life would be if we could solve things in three easy steps? It just not that simple.

One of the main things I see is that realtors are being misled to believe that their clients are now internet social butterflies and that so much business is done via the web. This is simply not true. While more than 80% may look on the web for a home; the majority of individuals still rely on word-of-mouth or personal relationships to find a realtor to assist them. For instance, a recent fact published by the American Affluence Research Center reflects that only 12.5% of affluent clients even use social media. That’s not very good odds for those seeking to attract the luxury market via the web, through Facebook or other social networking venues.

The other common mistake I see in today’s real estate world is labeling clients. Of course, you know about “boomers” but now we have the newest which is the Millenial generation. The Millenial Generation was born between 1977 and 1998 and has approximately 75 million members. REALTORS are being led to believe that this age group is the next big wave of buyers. Let me assure you – I don’t see this happening. Why? Because I personally have millenials (with college degrees) living under my roof and they can’t find jobs that pay enough to afford a home. Fact: College degrees don’t guarantee a high-paying job thereby making home ownership affordable. I have friends who also have children who graduated college, who are hard-working and driven BUT who are also waiting tables and working part-time at corporations just to get an opportunity for full-time employment. Where do they live? At home with their parents! In addition, many of my friends have not only their grown children living at home but also their parents. These are the people who are helping to support the Millenials. I wish more people would write about that fact.

Millenials and Gen “X” and “Y” are watching the world economy in turmoil and they are scared for their future. I’m not sure they see the value in home ownership and they may just wait it out for a few years and see how the United States government (and lending instituions) respond to our economic crisis.

What is factual? At the end of the day it is still about relationships. Get out from behind your computer and meet people. Stay in touch with friends and former clients. While I personally have a blog, Facebook page and I tweet like a maniac, I do so for fun. I don’t expect business to boom because I do all my social networking. People will buy homes because they need a place to live. But as for me – know any investors or better yet – let’s do lunch?

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What’s behind door number ??????????????

February 1, 2011

There was a popular game show once that gave contestants the option to pick door number one, two or three to gamble on attaining a prize. Sometimes it was a car and sometimes it was a donkey. It was all about a game of chance and whether the contestant would win a grand prize or a booby prize.

Well…welcome to real estate in 2011. We have options but some are grand and some are not so grand. It all depends on what we are going to pick.

Through one door is the road to recovery with lenders writing loans, revamped credit scoring system and someone realizing that trying to negotiate settlement on loans is better than foreclosing on half of American homeowners?

Yet another door is this constant tease of do we foreclose or not because the court system has reacted in a crazy manner to the even more INSANE behavior of attorneys in the foreclosure process. We are witnessing – for the first time in recent history – the complete and absolute breakdown of our judicial system and the ethics of the legal profession. Insanity reigns.

Finally we have the banks. I could write a massive epistle on the sins of our lending institutions. From a real estate perspective, it seems no one knows what they are doing when it comes to banking. Even bankers are in a flux with the Mortgage Banking Association strategically defaulted on their own office building. No one in the news seems to discuss this very much. Oh the irony! In other words, the main organization that represents the banking industry walked away from their debt rather than repay their own bank loan.

I don’t know which door to pick because I don’t know if we have a sane person left running the (a) our country, (b) banks or (c) Wall Street. From my perspective, it all looks like a booby prize right now behind doors one, two or three. Won’t someone prove me wrong?

http://online.wsj.com/article/SB10001424052748704829704575049111428912890.html

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Bring back the tax credit – It’s time!

June 22, 2010

Sometimes NO News ISN’T good news. As predicted by me and by many others, since the tax credit expired – home sales would drop. SO it comes as no surprise to me that sales are downs significantly since the stimulus package ended. While the tax credit was not an astounding amount of money – it was enough to get people excited about the prospect of buying a home and receiving some financial benefit for their purchase.  It just proves that while only a slight gain – in the eyes of home buyers – IT IS STILL A GAIN.

Overview of Data in NAR’s Existing Home Sales 6/22 Release

Was anybody really surprised by today’s EHS release by NAR? The drop to a 5.66 million rate simply reflects what most have known for a while now: that second-half expectations will be tempered to reflect the pull-forward of sales brought about by the stimulus.

To sum: May’s transactions were up 18% nationally (when compared to May ’09), with all four regions showing double-digit gains led by the South (up 22%). For the second straight month, all four regions had higher mean average sales prices than the same period a year ago. Inventory declined marginally to 8.3 months.

South – April sales up 22% over 5/09, ASP up 3%. The South’s ASP is now 18% below its peak (hit 10/05) and 14% above the trough (reached 2/10). Transactions have been up vs. LY for 9 straight months; price, 5 straight months. LTM sales volume in the South is at about the same level as in May of 2003.

 

Bring back the credit. As home sales goes – goes the economy. Improved retails sales, increase in jobs, and more general spending by the American public. It doesn’t take a Harvard educated economist to figure this one out! Bring back the tax credit.