Market Trends and Condition

I don't know if this is too old by now but I enjoyed it.

http://images.businessweek.com/ss/10/08/0803_strongest_housing_markets/1...

For the purpose of discussion, let's consider this. With the tax incentive gone, it seems that the only buyers are investors. As we all know, investors are looking for a deal at a small percentage of property value. Wholesalers need to purchase at a price that allows them to resell the property and pocket a profit. The sales price average continues to drop because of these factors. Properties that were purchased a year or two ago at 60% to 70% of value are now valued at market rate or lower. Cash flow properties of a year or two ago are getting hard to rent with a positive cash flow because of the competition of lower priced properties, that can be rented at a lower rate. What will it take to turn this trend around and stabilize the market?

This article can be found at: http://www.kansascity.com/2010/06/24/2040706/real-estate-qa-could-the-ho...

By CHARLES CARTER
McClatchy-Tribune News Service

QUESTION: Do you believe the housing crash could have been predicted or was it something that occurred "out of the blue"? How would you have predicted this event?

-Peter Breedlove, Pittsburgh, Pa.

Hi Guys,

How can investors profit from this new Neighborhood Stabilization Program?

Many Thanx,
George

The beginning of this talk specifically about Rhode Island, but the rest is great general information.

AGENDA
RI REAL ESTATE INVESTORS GROUP
I. INTRODUCTION/BIO
II. RI REAL ESTATE TRENDS (Distressed Properties)
- 1 in every 524 housing units received a foreclosure filing in April, 2010.
- Total NEW foreclosure activity (861 units) Providence county accounts for
577, Kent County follows with 193
- 6 month trend = RISING
- 76% of properties in FC are at Auction stage;
- 24% are bank owned;
III. ARTICLES
1. Are We Headed For A New Real Estate Decline?
- Fed Gov. tax credit for First Time Buyers now over and done. Result
is housing market that had begun to stabilize will now be set back as
demand wanes, meaning prices will soften, for buyers/investors

The number of homeowners who missed at least one mortgage payment surged to a record in the first quarter of the year, a sign that the foreclosure crisis is far from over.

More than 10 percent of homeowners had missed at least one mortgage payment in the January-March period, the Mortgage Bankers Association said Wednesday. That number was up from 9.5 percent in the fourth quarter of last year and 9.1 percent a year earlier.

Those figures are adjusted for seasonal factors. For example, heating bills and holiday expenses tend to push up mortgage delinquencies near the end of the year. Many of those borrowers become current on their loans again by spring.

Without adjusting for seasonal factors, the delinquency numbers dropped, as they normally do from the winter to spring.

I was recently checking the forcast of the future of the real estate market and what I found is bad news for america and good news for Investors.Go to youtube and type in (forclosure crisis 2010)and get the low down on what we can be expecting for the next 2-3 years.I think the bottom of the market is further down than we can imagine.Go to youtube and check it out.

Housing Optimists Are "Not Paying Attention" to the Facts, Says Dean Baker.

Among the crowded ranks of economists and market watchers, Dean Baker stands out. Baker presciently called the housing bubble when he published “The Run-up in Home Prices: Is It Real or Is It Another Bubble?” in 2002.

So does our guest Baker see the so-called housing recovery now? "No. I mean I think people that are saying that just aren't paying attention to what's in front of their eyes," says Baker, an American economist and co-director of the Center for Economic and Policy Research.

The first wave of U.S. mortgage defaults was spurred by lenders who made bad loans and borrowers who wound up with larger monthly payments than they could ever hope to manage. Lately, something altogether different has been making an increasing contribution to soured debt: Americans choosing to stop making mortgage payments they actually can afford.

You've probably heard it a million times recently: it's a buyer's market right now in real estate. That's actually a big understatement - it's a huge buyer's market. That's bad news for sellers, but good news for you if you're in the market for a new house (and can get financing). While there are attractive deals to be had nationwide, certain areas have a big inventory of affordable homes available now. You can see a full list of such places on HousingTracker.net, but here are some cities our experts have cited as being especially good choices for bargain-minded buyers.

Phoenix
This city has one of the strongest economies in the country right now, according to our experts.