Showing posts with label prices. Show all posts
Showing posts with label prices. Show all posts

Friday, April 2, 2010

Housing Prices Declining Again

Housing Prices Declining Again

According to this Real Estate Economy Watch article, Fear Seen Driving Prices Lower than Last 20 Years, the housing markets in most US cities "will see prices fall below the lowest levels of the last 20 years" according to the House Price Forecast from University Financial Associates (UFA) in Ann Arbor Michigan.

The article quotes Dennis Capozza, the Dykema Professor of Business Administration in the Ross School of Business at the University of Michigan, and a founding principal of UFA, as saying the "Detroit metro was the canary in the coal mine this cycle, with falling house prices arriving earlier than in other metros. Other metros that have already or will soon converge to pre-bubble real prices include Las Vegas, Phoenix, the inland California metros and many south Florida metros."

Overall, the UFA's forecast "would take the national median price of a home in most markets below $101,000, the national median in 1990, according to the Census Bureau." This prediction comes after other recent data which shows that housing prices are headed downward again. This will result in more short sales and foreclosures as underwater homeowners and real estate investors walk away from their upside down (i.e. negative equity) homes and properties.

Short Sale and Foreclosure Help and Assistance for Real Estate Investors, Home Builders and Developers in Nashville TN and Middle TN. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle Tennessee real estate investor, home builder, condo developer or real estate developer who cannot pay the property/project mortgage payments (due to the poor economy, adverse financing conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), have already defaulted on the mortgage, or are already in foreclosure, or owe more than the property/project is worth, please contact me to discuss your options including a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/project). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (property owners, real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Springfield TN, Gallatin TN and Mt. Juliet TN). If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.

Friday, December 18, 2009

Housing Market Not Rebounding

Housing Market Not Rebounding

According to this USA Today article, Can home market bounce back without more help?, high foreclosures, high unemployment and short-term government housing stimulus programs (i.e. expanded FHA, expanded Fannie Mae and Freddie Mac, the $1.25 trillion mortgage securities buying program, the home buyer tax credit, etc.) will continue to challenge the housing market and may not be enough to turn housing prices around in the near future. While the article quotes experts on both sides of the housing market rebounding/not rebounding issue, it seems to me that those saying that the housing market is rebounding are only quoting housing market sales figures, sales prices, inventory, etc. without considering the forces behind those figures. For example, if the first home buyer tax credits are spurring 30% of all home sales (as stated in the article), then you cannot use the home sales, home prices and inventory figures as proof the housing market is rebounding since the tax credit is responsible for a significant portion of the sales activity. Given that this tax credit goes away on 4/30/2010, it is not a long term demand driver. Also, the government's $1.25 trillion mortgage securities buying program will end in April 2010 so that is another artificial stimulus that will disappear with the result of higher interest rates and lower demand. Therefore, in my opinion, this "housing market rebound" is a mirage and will disappear once these artificial stimulus actions end. See my post Our Phony Real Estate Market for more information.

Below are some interesting quotes from the real estate experts mentioned in the article:
  • Lawrence Yun, chief economist at the National Association of Realtors (NAR) - "Right now, we're not in a sustaining recovery. We're on the cusp of a self-sufficient recovery, but we're not there yet." Well, at least Lawrence got some truth into that statement even though he ended it with Realtor spin.
  • Mark Zandi, chief economist at Moody's Economy.com - "Foreclosures will be high for a long time and property values won't increase. Many (homeowners) are underwater and are at high risk of defaulting. There are a lot of foreclosed properties in the pipeline that will limit the market and depress prices."
In short, there are no positive sustainable demand forces in the housing market. The tax credits will go away and the government mortgage market propping will end resulting in higher interest rates. The only sustainable housing market forces are high foreclosures, high unemployment and too much debt. All these forces mean more problems ahead for the housing market.

If you are a Middle TN homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact me to discuss your options including a loan modification and a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Robertson County TN, Maury County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Spring Hill TN, Gallatin TN, Springfield TN and Mt. Juliet TN).  If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.

Wednesday, April 8, 2009

Home Prices Still Need to Decline More to be "Affordable"

Home affordability is a reltaive thing.  However, that affordability should not be based on interest rates.  It should be based on income and housing prices - in other words the cash value of the home.  According to this Wall Street Journal article, Home Prices: Low, But Still No Bargain, home prices do indeed need to fall more.  I agree with this overall assessment.  Of course this will lead to more foreclosures as more homeowners experience negative equity situations.  If you do factor in financing then there is another problem: the looming commercial real estate crisis (more on that soon).