Market Trends and Condition

good article... link below...

'About 4 million loans that are seriously delinquent should remain in the foreclosure process for at least three more years'

'We've got a huge population of shadow inventory that will not be turned around in the next year," says Kyle Lundstedt, Applied Analytics' managing director. "We've got three to five years of this extended new normal."

http://realestate.msn.com/foreclosure-slowdown-deepens-continues-to-stal...

Valerie

28.6 percent of homeowners in the third quarter are living with mortgages that are more than the home's value. That's up from 26.8 percent in the second quarter. This shows that the housing market is still going backwards and it explains why a lot of people can't move and buy new homes that are offered for sale by investors.

Read the whole MSNBC.com story here:

http://bottomline.msnbc.msn.com/_news/2011/11/08/8687925-nearly-29-of-mo...

As previously pointed out in other posts, the housing market is going the other way (down, not up). Be careful when making your deals as a lot of "normal" deals will crush you this time around.

Read the whole MSNBC.com story here:

http://bottomline.msnbc.msn.com/_news/2011/11/07/8684796-after-steadying...

Freddie Mac’s losses increased in the third quarter, prompting a request for another $6 billion in aid to stay afloat. This is the largest request since April of 2010, with two reasons advanced for the poor performance:

1. Lower interest income due to refinances at historically low rates.
2. Failing and bankrupt mortgage insurers are not paying out as much money when homeowners default.

Rescued by the government in September 2008, Fannie Mae and Freddie Mac have so far received approximately $169 billion, and it is estimated that at least $51 billion more will be required to shore up these entities through 2014.

We’re in a historic housing downturn, but analysts were surprised to find that the second and third quarters of 2011 yielded statistics showing that home ownership edged upward to 66.3% from 65.9 percent in the second quarter.

According to the U.S. Census Bureau, national rental vacancy was 9.8% during the third quarter, down from 10.3% this time last year, but up from 9.2% in the second quarter. The data points to a sustained home ownership rate among older adults, but a marked decline among young and middle-aged prospects. One analyst predicts that in the future buyers will wait longer to buy, until their late 30s or even early 40s. People still want to own a home, but it’s going to take longer in the future to lure them to the closing table.

If anyone wants up todate information on the national factors affecting real estate check out realtytimestv.com. Its great news and info

Real estate agent and broker veterans are learning an entirely new skill in today’s depressed housing market. They are being tasked more and more by lenders to deliver cash to homeowners to entice them to leave their homes in an orderly manner to facilitate foreclosure and leave behind less damage.

This avoidance of the eviction process saves money for the lender, but it also attempts to grease the wheels of foreclosure by paying off the departing homeowner. One real estate agent interviewed described the typical situation:

- She is contacted by the lender/bank and advised of the pending foreclosure.
- She checks out the home to see if it’s vacant or occupied, looking for cars in the driveway and lights on at night.
- If occupied, she contacts the residents in three ways:

High rents and occupancy levels have pushed up the values of apartments nationally. As more Americans shy away from home ownership, demand for quality rentals is rising faster than supply. Investors who bought apartment buildings just a few years ago are selling for nice profits these days.

Effective rents, which include landlord discounts in some markets, have risen to an average of $1004 per month. This was in the third quarter, and 2.3% higher than the same quarter a year ago. Reis, Inc., a real estate data service, reports that of the 82 markets tracked, only Las Vegas saw rents decline compared with a year earlier.

Home prices in August were up in half of major U.S. cities measured by the S&P Case-Shiller Home Price Index. In 10 of the 20 major metropolitan areas tracked, prices rose in August according to the Index.

The largest price increases were in Washington, Chicago and Detroit. The biggest declines were in Atlanta and Los Angeles. Midwest cities have been showing some strength since May, and some analysts hope that this is an indicator of a bottoming out in some markets.

Read the whole CNN Money story here:

http://money.cnn.com/2011/10/31/real_estate/home_prices/

Just choose your real estate smartly and you'll be okay. Real estate is a local game and you must be honest in your assessment of your location and the housing that is available. Ask yourself if you have an exit plan. The next six months are going to be brutal as banks are going to be stepping up their effort on foreclosures. That will depress the market again so make sure you know what you are doing. Really think.