**** Bove: Housing Market Will Fall 10%-15% When Fed Stops Subsidizing Home Prices
Posted Mar 19, 2010 10:09am EDT by Henry Blodget in Recession, Housing
Related: xhb, tol, len, kbh, ^dji, ^gspc
For the past year, the Fed has been buying mortgage-backed securities in an effort to keep mortgage rates low and provide some support to the housing market. On March 31, the Fed says, it will stop buying mortgage-backed securities.
So what will happen to mortgage rates and house prices?
No one knows, says **** Bove, the wise and fearless analyst at Rochdale Securities.
No one knows what mortgage rates would be if the Fed weren't subsidizing them. No one knows where house prices would be if the Treasury and other government agencies weren't modifying mortgages and trying to bail homeowners out. No one knows what would happen if taxpayers weren't funding tens of billions of dollars of losses at bankrupt Fannie and Freddie to provide yet another housing subsidy.
Even if the Fed stops buying mortgage-backed securities at the end of March, Bove says, some of the impact of the subsidy will still be felt through June. Also, for a while at least, Fannie and Freddie will continue to buy mortgages. So there won't likely be a sudden change to the housing market or mortgage rates.
Over the longer term, though, we'll begin to find out where house prices would be if the housing market were less subsidized. And **** Bove expects that that level is 10%-15% below today's prices.
Who is Dean Graziosi?
Are People Actually Successful?
Does Dean Practice What He Preaches?
What Deals Are The Students Doing Right Now?
Brand New To Investing-Solano County, CA
Hi Everyone,
My name is Kim Liew, Realtor for Solano County, CA area. I am an active part time Realtor, who would love to someday do Real Estate Full Time. However, with three kids, and a mortgage I can not at this point just do Real Estate. My husband and I work too much, and do not have enough time to spend with the family or each other. I have two jobs, and my husband works long hours.
I beleive in Deans program, however I need some guidance and inspiration from those who are having success.
My challange is I see the light at the end of the road, and I have hit a financial barrier to get me there. How do I get my first deal to work with little reserve? I have great credit 750+, but most places want you do put down 20%. I have no equaity so I can not do a equaity line of credit.
Any suggestions?
Make time
Hi Kim, the best advice i can give you is to make time...the rewards will make up for it. You have great credit and that's a huge plus.
To get started i would find a decent piece of property and go find a hard money lender...flip it pocket some cash.
Take action and good luck!!!
Realtor looking for advise
Hi Kim:
I am a REI involved in Short Sales. I am looking for a realtor who can find short sales for me in California.
For every deal that goes through, you would earn the regular commission.
If you are interested, give me a call and let's talk.
Please reply to me privately and I will give you my phone #.
Brigitte
I love horses!
Hi Kim,
How is the housing situation in California? I am from California and now in Atlanta. I wish you the best.
NC Realestate investor
Hi Im a investor in the costal plains of NC looking for other people in the realestate professions to network with.
Michael
I have REOs in Georgia available what can I do?
Let me know what we can do to take advantage of the housing situation in Georgia. There are many boarded up properties, abandoned and foreclosures I heard were the highest in the nation. You can contact me by PM. Thanks.
networking
I have just started with deans program and good around the triad area, if you are looking to buy real estate in the triad I would be a good contact. Let me know more about you and what your looking for through a PM. hope to here from you soon. Kent
Networking.
Michael I am in Charlotte please send me a email with your contact info; including your name, phone number, email address. My name is Kevin and I am a RE Investor new to the industry but growing as well and I to need to build relationships. Let's talk thanks
I want t o join forces with other investors
I'm a successful real estate investor in Arkansas. I'm interested in joining forces with other real estate investors who may be having difficulty getting started. I have a succesful program which I am able to pick up propeties with little to no money down. I do not have to use my credit. I'm interested in teaching other investors in other areas so we can prosper together. You can visit my web site at www.nwapi.com to get an idea of what I am doing. Please contact me if you are interested. I want to pick up 100 properties in 2011. Who wants to join me?
I am Interested
Please tell me how to get started with you personlly. I am in the middle of a deal right now with a very motivated seller who wants to get rid of two rental properties. My first deal and I am terrified. I am gathering information right now, and I need all the help I can get. I look forward to hearing from you soon
I know your post was sent
I know your post was sent awhile back and I hope you are still acting in DG's website. I am fairly new to the RE Investing side but learning quickly. I am interested in building networks countywide. Please send me your information to my email; name, number to best reach you, email. My name is Kevin thanks.
New Guy
Hello everyone, my name is Kent and I just joined this REI Club. I live in Siler City, but own and rent a property in Greensboro. I am very interested in getting into one of these RE Investor meetings everyone is talking about. If anyone can help my out plese send me a PM and give more information especially the cost to join. I can travel to raliegh, greensboro, and even fayetteville areas with no problem. Please help thanks Kent.
Are you interested in
Are you interested in properties in Georgia and/or Alabama?
Killer Deals in NC
I have so many killer deals but cant seem to get serious investors. Would the real investors please stand up!!!!
Can Anyone HELP all HELP would be appreciated.
I am new to the group and I was looking to post this comment somewhere and was unable to find where. I am very new to RE Investing and I have sought after MENTORSHIPS. I found one here close in Chalotte, NC. We have a talked back and forth about me becoming one of his students/trainees. I expressed to him repeatedly that I do not have any upfront funds to start my business. He has expressed interest in waiving the $2,000.00 and putting it into my first deal. I have no problem with that, his stipulations are that we are partners on every deal with a 50/50 split for a term of 12 months? He is wanting me to sign a contract for those terms is this a good deal for me? Can you please assist me in making the right decision or decisions? I know that I could probably do this on my own in time with tons of mistakes and money lost. So I can considering this very heavily. I do have the contract that I could send if someone could review it. I appreciate any help here in guiding me. He is wanting this contract back A.S.A.P. He was not going to help me because of the NON-UPFRONT cost of $2,000.00 but he has since reconsidered. I just don't know if this is a good deal and the length of term. PLEASE HELP. I am very serious in making Investing my career and am extremely passionate about pursing it. If there is somewhere to post this let me know I just couldn't find where to open up a topic. Thank you so much.
Kevin
Mentorship
Ultimately it is up to you for what feels comfortable to you as well as what is right for you.
Lots of people get a good start because of a good partnership and chance to learn.
For around $20 you can get an attorney to look over your contract, so you decide after that.
Sounds like a good opportunity, hope it works out for you if you choose it!
Wholesalers & Birddoggers
If you can help we are looking for Investment Properties in Charlotte, NC & Surrounding areas. Preferably
-SFR 3/2's or greater
-Homes older than 10 year's should be brick or block construction
-Gross minimum profit to exceed 15%
-A, B, C class neighborhoods; Mostly owner occupied, can be non-owner, mix of homeowners and renters, rental, clean and safe areas, blue collar, very flexible criteria.
-Price range $50,000-$100,000 (best case) will look at others, in general will look at all the above case by case.
-Will do light to medium rehab on houses.
-No pool or hazards
-If you can find deals we can pay you a birddog fee and our buyers want to purchase 100+ a month. We are working with 2 big buyers with more coming and we cannot find them enough houses to buy. Can you help? Thank you
Kevin Angle
KAinvestingllc at gmail dot com
looking to network!
I would like to start out by saying hello to every body, I live and work in the Raleigh, Cary, Durham area of NC. I would like to network with other investors and find out what works best for you! I have a few cash buyers on hand and I need help getting the best deals for them as well as putting money in my pocket.