Market Trends and Condition

Now that the first half of 2011 is just about behind us, economists are now predicting a better second half. These are the same economists who have predicted 12 of the last 3 recoveries. In other words, they don't have a clue. If they keep saying it every quarter, sooner or later they will be right. A broken clock is still right twice a day!!

Macro-economic studies aside, be careful out there because our economy is so fragile that an unknown catastrophehe could really put our stabilization process in jeopardy. Another Katrina, a CA earthquake, or an act of terrorism has a larger impact when the economy is already weak. (Just look at Japan and their economy since the tsunami)

Money can certainly be made but be smart.

I won't have you read this article on CNBC.com, but the main point is that here are some double dip real estate markets RIGHT NOW. I'm sure there are more to come.

12. Augusta, GA
11. Greeley, CO
10. Boulder, CO
9. Columbus, OH (One of my favorite cities; how sad)
8. Harrisburg, PA
7. Providence, RI
6. Little Rock, AR
5. Green Bay, WI
4. Lancaster, PA
3. Colorado Springs, CO
2. Greensboro, NC
1. Lincoln, NE

Read the whole story here if you wish:
http://www.cnbc.com/id/36036988

Here is a mortgage industry newsletter that has finally agreed with the demographic, macro-economic, game changing analysis that we calculated in 2009. Read it carefully and you can almost see the future because of the situation we are currently in.

http://www.dsnews.com/articles/analysts-dont-foresee-rise-in-home-prices...

Once more, you can make money in this market, just be careful and don't put your head in the sand.

You can read the entire msnbc.com article here:

http://www.msnbc.msn.com/id/43477387/ns/business-personal_finance/

but some noteworthy quotes:

"The crucial spring home selling season is almost gone and it has left a wounded housing market limping in its wake."

"Cash purchases made up 30 percent of sales in May, while investors accounted for 19 percent of transactions."

"In the 12 months to May, home resales were down 15.3 percent. The general weak housing market tone was underscored by the median home price, which at $166,500 was 4.6 percent lower than a year earlier."

Chief Justice Jean Toal of the South Carolina Supreme Court issued an administrative order that effectively halts foreclosures in that state. Instead, all pending foreclosures cases as of May 9, 2011 and all future foreclosure cases, must go through a "mandatory foreclosure intervention program".

The basic reason is that the banks are so slow with their process of other options, such as short sales, that sometimes the banks are putting the cart ifronton of the horse. This order hopes to stop this practice.

Just read an article on msnbc.com which detailed the fact the Greek banking system is about ready to crash down around their heads. You would think that Greece and the USA are an ocean apart so it won't make waves here. You'd be wrong. Just as Lehman Brothers collapse in 2008 caused destruction throughout the world, so may this latest debacle in Greece. The question is: Who owns the debt they are going to default on? Time will tell, but I'm sure we'll feel something from this. SO it begs the question: Should they start giving IQ tests to bankers as a pre-condition to employment?

Read this full article from www.cnbc.com to see what is really going on in this market. My favorite quote is:

"It’s a little bit like saying that aside from that one unfortunate incident with the iceberg, the Titanic had a really wonderful cruise,"

Full article: http://www.cnbc.com/id/43418837

Articles everywhere are very clear about the many market factors that are coming together to reduce the ability of millions to buy a home. Fewer buyers obviously mean more renters. However, not all of them want to be renters. It’s just as clear that the majority of Americans still believe that home ownership is best for them. This is true, even if they don’t think now is the time, or they are locked out of the market for credit score or down payment shortage reasons.

With prices still dropping, and the foreclosure pipeline filling up again, this summer is predicted to bring many desperate sellers to market. They’ll have to be very aggressive in their pricing to compete with foreclosure and short sale inventory. Reasons that some expect summer blow-out prices include:

Bloated inventory – with the national average showing around 8 months of inventory on the market, it’s a buyers’ market for sure. With foreclosures selling for as much as a 50% discount, normal sellers will need to start out at really deep discounts to their desired selling prices.

In a New York Times article this week, the dismal first quarter S&P Case-Shiller numbers are mentioned, but the story is about analysts who believe that the bottom is near in most real estate markets nationally.
That’s not to say that they expect prices to rebound anytime soon. In fact, many believe there will be another 5% drop followed by a “bouncing around” in a narrow range for several years. However, the prospect of a cessation of consistently falling prices is good news.