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Housing Froth Creating Imbalance for Consumers and Investors


Home buyers and sellers should think twice before jumping into over-heated real estate markets. Fed chief Alan Greenspan feels the housing boom is economically imbalanced or uneven. New liquidity in real estate assets could disappear if interest rates raise on feelings from investors that risk levels are growing in the real estate sector.

Real estate agents I've spoken with from several fast-appreciating markets have told me "thank goodness for the interest-only, 40 year term and 100% loans, otherwise we couldn't get buyers into homes at current prices". That's not a good sign for continued escalation of home prices, because mortgage lenders don't have an endless supply of mortgage products.

Home buyers are also uneasy in over-heated markets with rising values because they have difficulties perceiving how they are going to have appreciation at similar levels to the seller of the property they are considering buying. Prices to not increase at same levels forever. Markets are based on supply and demand, according to recently released numbers for July 2005, the number of homes for sale nationally is the largest since 1988. If sellers are looking to take profits and sell, the increased supply will drive prices down.

Not all areas of the country are in over-heated real estate markets, but you should do your homework before purchasing a home or investing in income property. Ask your real estate agent to prepare spread sheets for days-on-market, number of homes for sale and sold prices for 2004 versus 2005. Increasing days-on-market shows a slowing market and climbing inventory signal that potential buyers are staying on the sidelines.

Mark Nash is a nationally recognized consumer advocate for buyers and sellers of residential real estate. Author of four books including the recently released "1001 Tips for Buying and Selling a Home" Thomson 2005. Mr. Nash has been featured in USA Today, Fidelity Investor's Weekly, CBS The Early Show, Bloomberg TV, Dow Jones Market Watch, Unique Homes Magazine and The Universal Press Syndicate. His radio show "Real Estate Coast to Coast with Mark Nash" premieres on http://www.business.voiceamerica.com Wednesday September 14, 2005 9AM PST,11AM CST and 12 Noon EST. The show is looking for interesting guests including; real estate journalists, interior designers, home improvement experts, real estate attorney's, appraisers, home inspectors and celebrity's.


MORE RESOURCES:

Aspen real estate outgained other state resort-area markets in 2011
Aspen Times
ASPEN — A flat year for the Pitkin County real estate market in 2011 is looking good compared with the performance in Eagle County and other resort areas in Colorado. A report by Land Title Guarantee Co. shows Aspen and Pitkin County had one of the ...

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$16 house man: real estate genius or squatter?
New Zealand Herald
And while real estate experts and authorities say he's misusing the law, Robinson appears to have inspired dozens of imitators who moved into the Dallas-Fort Worth area homes - some of which were still occupied by their owners.

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Montgomery County eyes hefty real estate tax jump
Roanoke Times
Demands and cuts in state funding suggest a 21-cent real estate tax rate hike. Supervisors balked. By Mike Gangloff Montgomery County supervisors braced themselves Monday for the possibility of a record increase in the county's real estate tax rate.

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Real estate title agent to add 200
Pittsburgh Tribune-Review
The parent of United Lender Services, a national real estate title and settlement agent in Findlay, has acquired two large office buildings along the Parkway West, where ULS will relocate and triple its employment to more than 250.

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Los Angeles Times

Real Estate: National foreclosure settlement delayed, Nevada AG concerned
Reno Gazette Journal
Ap File BY THE NUMBERS Foreclosure-related filings for 2011 for Washoe County, Nevada and the United States. Filings include notices of default, notices of sale or auction and bank-owned foreclosures. Washoe: 7981 (down 27.3 percent and 27.6 percent ...
Week ahead in real estate (Feb. 6-10)U-T San Diego
Banks Paying Homeowners a Bonus to Avoid Foreclosures: MortgagesBusinessWeek

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Real estate firm's game ad nothing to laugh at
Chicago Tribune
Five years into the housing crisis, a national real estate firm thinks there's still a national audience of potential homebuyers just waiting for the right opportunity. The combination of home affordability and mortgage interest rates are practically ...
Century 21 Maintains Leadership Position in Brand Awareness SurveyRisMedia.com (press release)

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New York Times

So Eager to Get Foot in Real Estate's Door, They Work Without Pay
New York Times
In past years, becoming a real estate agent was rarely a first-choice gig. For many people, it was a way to pay the bills while trying to break into another field. For some, it was a second career — or maybe a third or a fourth — tackled after the ...
Real estate is a team sportBoston.com (blog)

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Zephyr Real Estate Announces Top Producers for 2011
MarketWatch (press release)
SAN FRANCISCO, CA, Feb 06, 2012 (MARKETWIRE via COMTEX) -- Zephyr Real Estate, San Francisco's largest independent real estate firm, is proud to announce the company's top producing real estate agents for 2011. The Company Top 10, in order by highest ...

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TEXT-S&P says European real estate should weather downside credit risks
Reuters
"We think that our macroeconomic forecast of a mild recession for the first half of the year will have a moderate effect on the operating performance of our rated Real Estate Investment Trust (REIT) portfolio," said Standard & Poor's credit analyst ...

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Oregon Company Attempts to Bring Real Estate Into a Mobile World
LoanSafe
by Evan Bedard on February 6, 2012 in Real Estate (Source: By Sherri Buri McDonald, The Register-Guard, Eugene, Ore.) - A Eugene start-up company, RealLead is trying to bring the speed and immediacy of mobile communications to real estate shopping.
Bringing real estate into a mobile worldThe Register-Guard

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