Market Trends and Condition

The preliminary reading for the consumer sentiment index dropped to 63.8 in July from 71.5 the month before, falling far short of expectations of an increase to 72.5, according to a Reuters poll of economists.

The survey's barometer of current economic conditions fell to 76.3, the lowest since November 2009, from 82.0. The gauge of consumer expectations was also at its lowest since March 2009, tumbling to 55.8 from 64.8.

What this all means is that people do not have faith that the American economy is going the right way. Use this information however you want, but at least you need to be informed.

You have to read this article in full to get the full effects of what is going on in the housing market. Read it here:

http://www.msnbc.msn.com/id/43687588/ns/business-us_business/

If you are setting up a business as a C Corp. and you are using other people to buy shares of this new corporation, then be aware of this:

Gains from selling qualified small business stock (QSBS) issued between now and year end are eligible for a zero (0) percent federal income tax rate. Shares must be held for over five years to take advantage of this unbelievably good deal, and not all shares qualify.

Whether you are considering obtaining funding for your own business or acting as an investor for someone else's operation, here's what you should know about QSBS and the 0 percent tax rate.

I receive some wonderful strategy from some of the largest banks and brokerage houses across the country. Unfortunately, I also receive some items that when put together, it causes a pause of concern. The latest information was received on Friday and at first glance has nothing to do with real estate. However, when you extrapolate the effects it could have on the economy; obviously it does affect real estate.

It has to do with the price of corn. Yeah, corn. It started by having some analyst observations regarding the similarities between 2008 and 2011. And now, the price of corn is the latest of a series of signals that remind investors about 2008, the year the financial crisis spread across the globe and Lehman Brothers collapsed. This information comes from the Bank of New York.

According the S.F. Gate, here's the list of 10 best cities to buy properties for 2011...

now, no one said anything about price...

1. San Francisco, CA (Bay Area)
2. Austin TX
3. Madison Wisconsin
4. Raleigh-Durham NC
5. San Antonio TX
6. Oklahoma City, OK
7. Des Moines, IA
8. Salt Lake City UT
9. Fort Collins CO
10. Omaha NE

if you want to read article:
http://www.sfgate.com/cgi-bin/blogs/ontheblock/detail?entry_id=79090

Wishing everyone success,
Valerie

This is from an article on msnbc.com. It describes the cities that continue to feel the most pain from the 2007 - 09 recession. The whole article is here:

http://www.msnbc.msn.com/id/43551895/ns/business-local_business/

The cities are here if you don't want to read the whole article:

10.Canton-Massillon, Ohio
Change in employment 2001-2011: -10.1 percent
Population: 404,422
Unemployment: 9.3 percent
Poverty level: 12.3 percent
Median income: $44,799

9.Dayton, Ohio
Change in employment 2001-2011: -10.3 percent
Population: 841,502
Unemployment: 9 percent
Poverty level: 13.3 percent
Median income: $47,145

8.South Bend-Mishawaka, Indiana
Change in employment 2001-2011: -10.9 percent
Population: 319,224
Unemployment: 9.1 percent

Elix, I found this story to be enlightening. I had no knowledge that things were this bad in The Big Apple. Tell me it ain't true:

http://www.dsnews.com/articles/one-in-10-nyc-mortgages-seriously-delinqu...

Here is a story today explaining the problems in this market and why it has a good change of getting worse:

http://www.dsnews.com/articles/lps-finds-serious-delinquencies-outnumber...

Needless to say, this can be a great opportunity, but you must be smart enough to position yourself correctly. Have your exit plan in place before you commit to a home OR have enough funds to hold the property if your "Plan A" fails.

Here is a story from a newsletter that I receive:

http://www.dsnews.com/articles/new-york-appellate-court-rules-against-me...

MRES is the Mortgage Electronic Registration System which has become the central figure in a lot of this foreclosure mess.

I have heard people quote this person and that professional but truly do not know how to find the bottom themselves.

Each area will have it's own bottom. Each area will act independently.

The bottom will be found through statistic. Websites such as FHFA.gov will show pricing indexes. You can see how depreciation of homes grow less and less. If you were to graph it you would see possibly in your are a bowl of sorts - This could be the bottom.

The bottom can also be found a construction begins again and people move into your are. Other items that you can use would be seeing people purchasing homes more and more. A Realtors area sales analysis can show you this.