Champaign County Real Estate News Blog

Shortsale Success

Aaron Gallagher (Green Street Realty ) — Sun, 23 Aug 2009 16:33:17 -0500

I've really been wanting to get back into the shortsale game but was turned off by the entire process. The first 6 of these I did were a huge pain to say the least. I finally took some time and invested in a shortsale process that was essentially a fill in the blanks system. The difference in the process was immediately evident from the start. I got a much better response from the bank, my package moved through their system much quicker with fewer issues. I'm hoping to have a preliminary answer within 3 weeks of submission! I'll keep everyone posted as to the progress and outcome of the deal. If you're in need of selling your problem property follow this link and follow the instructions. www.stopforeclosurechampaign.com

How Uncle Sam Can Help Build Your Portfolio

Aaron Gallagher (Green Street Realty ) — Mon, 17 Aug 2009 11:02:09 -0500

it seems like the big bail-outs are reserved for folks in D.C. you aren't alone. Experts have recently noticed that Washington is handing out bonus dollars for bankrupt executives while people on Main Street are getting laid off in record numbers. Meanwhile the federal government is hiring even while small business owners are shutting down the shop. If you are like most American's, chances are the little bit of unemployment alone simply won't suffice in keeping a roof over your head while saving for college and planning for retirement. After all, a mere $400 per week for six months barely keeps a family above the poverty level.

Instead of hoping for a bail-out that actually applies to you, learn how Uncle same can truly help build an investment portfolio with the help of short sales. Skeptical? Good. It shows you aren't likely to fall for the cheap tricks and dime-store strategy promoted by most so-called experts; instead, keep reading to see for yourself how this little used strategy can turn short sales into a long term income, private pension fund or other investment portfolio even while others stake their wealth on a wing and prayer.

1. Find a short sale property located in a good rental market. Look for simple starter homes in family oriented areas located close to public transportation, schools and shopping.

2. Place the minimum down payment and finance the rest using an affordable interest rate fixed for 30 years.

3. Perform needed maintenance and repairs to bring the property up to a safe and secure living condition. Do not over-invest in the property. Use the KISS formula (keep it simple stupid). The goal is to provide safe and affordable housing.

4. Market your property to the Section 8 housing program via the local HUD office. Section 8 provides rental assistance to low income households. You will need to fill out a property information sheet and have the home inspected (usually free) by a HUD inspector.

5. Determine the Fair Market Rent. HUD typically pays all or a portion of the rent for low income households based upon the fair market rent for your area. FMR can vary widely depending upon the area the house is located but a typical 3/2 home in a small town in Florida will go for just over $1,000 while another in California may be double that. Once approved, you can now show the home to prospective tenants just like you would any other program. To determine the Fair Market Rents in your area view the current 2010 FMR schedule at http://www.huduser.org/datasets/fmr.html.

6. Sign a lease. Collecting rent directly from the federal government dramatically reduces the likelihood of skipped rental payments but it is still important to carefully screen tenants and sign a lease just like you would for any rental. Many tenants may be responsible for only a very small portion of the monthly rent but other issues like damages, repairs etc still should be clearly indicated.

7. Bottom line...Section 8 rentals are not for the faint hearted but it is often possible to lower the risk of non payment for homes that are both affordable and able to cash flow very nicely due to their location. Rather than going it alone in a tough rental market, partnering with Uncle Sam to provide safe and affordable housing while receiving payments directly from the Federal government builds equity and income while others are cutting back.

Why are buyers waiting ?

Aaron Gallagher (Green Street Realty ) — Thu, 09 Jul 2009 10:54:24 -0500

I have 3 or 4 qualified buyers who won't get off the fence despite low prices and lower mortgage rates. No matter how good the deal I bring them they still shy away and say they're going to wait. This seems to be the sentiment nationwide as confirmed by a survey by Realtor.com, read below:

According to a survey conducted by Realtor.com, home buyers in the U.S. are hesitant to jump into the housing market, given the current economic downturn. Nearly 53% of the survey participants said they have postponed their home plan on account of their negative outlook. Uncertainty on the job front was the main factor for not buying a house for nearly a third of the survey participants. Nearly 16% said they worry about selling their current home, while 8% said they fear home prices will keep falling. Home buyers recognize that the housing market currently offers great deals; however, financial worries far outweigh attractiveness of the deals available. Nearly 20% said they were interested in foreclosed homes with an attractive price, while nearly 15% said they want to receive incentives such as the $8,000 tax credit for first-time buyers. Errol Samuelson, president of Realtor.com, said buyers feel that purchasing a foreclosed home is more "complex" than other transactions. Among the survey participants, only 28% said President Barack Obama's plan to tackle the foreclosure crisis is working, compared with 41% who said it isn't and 27% who didn't know.

Where are home prices headed?

Aaron Gallagher (Green Street Realty ) — Tue, 23 Jun 2009 04:22:28 -0500

According to analysts, home prices may fall in the near-term and rise only in 2012. "We expect prices to drop for another year and then stabilize before starting to rise with incomes," says Standard & Poor's Chief Economist David Wyss. The S&P/Case-Shiller U.S. National Home Price Index, which tracks the movement of home prices, will fall about 16% this year before stabilizing. Fiserv, a research firm, has forecasted the 2012 home prices in 50 largest metro areas across different states.
In some states such as Wisconsin, Ohio, Indiana, and Michigan, home prices will see a rise by 2012. However, in states such as Florida, California, New Jersey, and New York, prices will fall until end 2012.

Elliot Eisenberg, a senior economist with the National Association of Home Builders says there's still pain to come in states where there's oversupply. "Prices will have to come down further and it will take a while to burn off the excess inventory that's floating around there," said Eisenberg. So what should home buyers do now? Is it a good time to buy? "To generalize, yeah, it is a good time to buy a house. I don't think there's any urgency because I think it'll still be a great time to buy a house a year from now," says economist Richard DeKaser of Woodley Park Research.

Eddie Bauer files for bankruptcy protection

Aaron Gallagher (Green Street Realty ) — Thu, 18 Jun 2009 11:15:52 -0500

The retail industry has been in turmoil with chains such as Mervyn's, Steve & Barry's, Goody's and Gottschalk's filing for bankruptcy in the recent past. Now Eddie Bauer, a chain with 371 stores, joins the list by filing for Chapter 11 protection in Delaware. The company has been struggling to repay its debt due to a decline in its sales on account of economic downturn. Its cost-cutting and restructuring initiatives couldn't prevent bankruptcy. "Eddie Bauer is a good company with a great brand and a bad balance sheet," said Neil Fiske, the company's chief executive. Eddie Bauer plans to sell itself to CCMP Capital Advisors, a private equity firm for $202 million. CCMP Capital Advisors has said it does not want to strip the company's assets. "We're not looking to liquidate the company or close most of the stores," said Jonathan Lynch, a CCMP managing director. "We're trying to help 8,000 employees save an iconic American brand." The company will continue with its operations pe
nding court's approval for the sale.

Homeowners' association can foreclose homes for nonpayment of dues

Aaron Gallagher (Green Street Realty ) — Thu, 18 Jun 2009 11:14:21 -0500

Have you been making timely payments to your homeowner association? If no, you may lose your home. There are more than 59 million people living in over 300,000 association-governed communities nationwide. Homeowner associations typically have the foreclosure clause in the purchase agreement signed by homeowners. Many associations have mandated external agencies to collect dues from homeowners, and collection agencies say they go about doing their job in a professional manner. Andrew Schlegel, executive vice president for Merit Property Management, which manages more than 140,000 community homes in California, said: "No one wants to do this. It's only coming up when people are completely obstinate about it." Schlegel said about 6% of homes his company manages have membership dues this year, up from 1% in the previous years. According to Foreclosure Listing Services, homeowner association initiated foreclosure attempts in Texas are up 30% now from 2 years ago. Bob Tankel, an attorney who represents homeowner and condo associations in Florida, says about 20% of the cases which had payment dues to his client associations have reached foreclosure. "We have compassion for those folks. At the same time, we feel for the rest of the homeowners who are paying their dues," said Schlegel.

New home subsidy unlikely to get through Congress

Aaron Gallagher (Green Street Realty ) — Tue, 16 Jun 2009 15:26:09 -0500

The Obama administration introduced an $8000 tax credit for first-time homebuyers in February in order to stimulate the housing market. Some believe the government should do more and offer incentives to all homebuyers. Johnny Isakson, a Republican Senator, has submitted a proposal to offer all buyers a $15,000 tax credit for home purchases. Isakson said the rising number of foreclosures "is continuing to precipitate a downward spiral in values, loss of equity by the American people and a protracted, difficult economic time." Analysts believe that the proposal may not find favor with Congress.

"There is bailout burnout across the country," said Brian Gardner, senior vice president at Keefe, Bruyette & Woods. "There's an argument for the stimulus, but the possibility of the bill passing is unclear," said Gardner. The proposal will cost the government $30 billion. Jaret Seiberg, a policy analyst for Concept Capital's Washington Research Group, said that "in an era of record deficits, it will be hard for lawmakers to accept that cost." The National Association of Realtors and National Association of Homebuilders have welcomed the bill since they expect the proposal to eliminate oversupply of homes and stabilize the property market.

Foreclosures fall in May

Aaron Gallagher (Green Street Realty ) — Thu, 11 Jun 2009 11:50:32 -0500

Foreclosure filings fell 6% in May from April, according to RealtyTrac, a provider of foreclosure data. "A total of 321,480 properties received a default or auction notice or were repossessed in May, up 18% from a year earlier," said RealtyTrac in a statement. The 18% rise is the smallest annual gain since mid-2006. Foreclosure filings have crossed 300,000 in each of the 3 months until May, and according to experts the total number of foreclosure filings may cross 1.8 million in the first half of this year. Nevada had the highest foreclosure rate with one in every 64 households, more than six times the national average. California ranked second at one in 144 households and Florida had the third-highest rate at one in 148 households. The national average is 1 in 398 households. With unemployment reaching a 25-year high, economists do not expect any reduction in foreclosures in the near-future. "The foreclosure bucket is filling faster than it's emptying," said Jay Brinkmann,chief economist of the Mortgage Bankers Association. "It will continue through next quarter at least." According to analysts at JPMorgan Chase & Co., home foreclosures in the U.S. will total 6.4 million by mid-2011, and inventories of foreclosed homes awaiting sale will peak in mid-2010 at 2 million properties.

Freebies for home buyers

Aaron Gallagher (Green Street Realty ) — Mon, 08 Jun 2009 10:39:56 -0500

Unsold homes cost builders money, and hence builders are looking at ways of selling homes as quickly as possible by offering incentives. "Builders used up all their construction loan money, and they're sitting on properties. So they can't build any more houses because they've got to sell these first," says Rhonda Duffy, owner of Duffy Realty. In addition to offering 5% to 20% discounts off the asking price, builders are giving away freebies to sweeten the deal. Some of the freebies offered are upgrades and appliances (nicer marble, hardwood floors, microwaves, freestanding ranges, cooktops, refrigerators, and washers), vacations to places such as Cayman Islands and Mexico, and cars such as E-Class Mercedes. Builders are also offering to pay for closing costs, fencing and landscaping, home inspection, and parking and association fees. Brian Lewis, executive vice president of Halstead Property, says buyers are feeling powerful, and they're using the current downturn to get great deals. "They are not necessarily falling in love with homes. They are falling in love with deals," said Lewis.

Current interest rates are not a hurdle for home buyers

Aaron Gallagher (Green Street Realty ) — Thu, 04 Jun 2009 11:09:51 -0500

ccording to Freddie Mac, the 30-year fixed mortgage rate jumped to an average 5.32% this week, from 4.91% last week. While refinancing activity has been hit by the rising rate, home purchases continue to rise. It looks as though home buyers are jumping in now, in case the rates rise further. Diane Saatchi, senior vice president with the Corcoran Group, says, "In the short run, there's an increase in activity to lock in rates. We're seeing a bit of a frenzy to buy." A further rise in rates could slow housing recovery, but the current rates are not high enough to dampen home buyers' interest. Greg McBride, senior analyst at bankrate.com, says the recent rise in rates is not a "barrier to affordability," and home buyers "don't need to panic," as yet. "Down payments and the ability to sell existing homes are the main impediment for home buyers now," said McBride. "There's also the more stringent underwriting rules. If you can get past those, mortgage rates are not a problem." It is important for home buyers not to lose sight of what they are trying to achieve when they shop around for the best rates and prices. "Don't get caught in the trappings of the negotiations and lose the whole package," says Saatchi. "People want a great deal and they forget about the house they're trying to buy."

Mortgage applications decline 16.2% in the week ended May 29

Aaron Gallagher (Green Street Realty ) — Thu, 04 Jun 2009 09:23:16 -0500

According to the Mortgage Bankers Association (MBA), its Market Composite Index, a measure of mortgage loan application volume, decreased 16.2% to 658.7 from 786.0 a week earlier. Refinancing in mortgages decreased to 62.4% of total applications from 69.3% the previous week. Analysts are concerned about the negative impact of the recent rise in mortgage rates on the housing market. GMAC, a large financial services firm, has stated that the home loan volume at GMAC is now about 75% lower than a few months ago when mortgage rates hit their lows. MBA, in a separate report released yesterday, reported an increase in commercial and multifamily mortgage delinquencies during the first quarter of 2009. Jamie Woodwell, Vice President of Commercial Real Estate Research at MBA, said the delinquency rates on commercial and multifamily mortgages "are all now at levels higher than at any time since the 2001 recession." Economists believe that housing market has to stabilize for the economy to recover, and for housing market to stabilize, interest rates have to stay low.

Bailed out banks go slow on lending

Aaron Gallagher (Green Street Realty ) — Tue, 02 Jun 2009 13:07:23 -0500

According to a Treasury Department's report on the 500 financial institutions that received funding under the Capital Purchase Program, the amount of loans outstanding fell 0.8% in March to $5.24 trillion from $5.28 trillion in February. Consumer loans outstanding, including residential mortgages, declined 0.5% in March to $2.88 trillion while commercial loans outstanding fell 1.2% to $2.35 trillion. The government, through the Treasury Department's Capital Purchase Program, has invested about $200 billion in more than 500 financial institutions, in order to inject liquidity into the system. Some analysts believe that banks will be doing a disservice to the economy if they do not use tax payers' money to extend credit. Banks have maintained, however, that while they are open to lending, the demand for loans has fallen. Companies have cut-back on expansion plans and individuals are going easy on mortgages and personal expenditures. Unless the economy picks up, appetite for loans may not see any improvement in the near-future.

Pending US Home Sales Surge

Aaron Gallagher (Green Street Realty ) — Tue, 02 Jun 2009 13:06:15 -0500

Pending US home sales skyrocketed to their highest number in 7 years, a sure sign that the bottom is forming and that bargain seekers have arrived. The National Association of Realtors reported that its seasonally adjusted index of sales contracts signed (the Pending Home Sales Index) jumped 6.7% to 90.3, well ahead of analysts' expectations. Lawrence Yun, NAR chief economist, said buyers have responded to favorable market conditions. "Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market," he said. "Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers."

Who will bear the cost of health care?

Aaron Gallagher (Green Street Realty ) — Mon, 01 Jun 2009 12:56:44 -0500

The Obama administration is planning to finalize health care reform this year. The reform will include specifying requirements for minimum benefits, highlighting conditions for coverage denial, and guarantees for affordable health care. Analysts estimate that it could take well over $1 trillion to overhaul the health care system. How to pay for it without adding to the already big federal budget deficit? Max Baucus, Senate Finance Committee Chairman, is among those grappling with the problem. It is likely that all stakeholders - consumers, employers, health care providers and others in the industry - will be asked to bear the cost. Baucus, in a recent interview, said, "We'll pay for it in a balanced way." Revenue options available to the government include taxing employer contributions to health insurance, imposing Medicare tax on government employees, taxing sugary and alcoholic beverages, eliminating tax breaks in contributions to "flexible spending arrangements" and "health savings accounts."

Oil price rise may impede economic recovery

Aaron Gallagher (Green Street Realty ) — Mon, 01 Jun 2009 10:40:47 -0500

Oil prices have risen 48% to $65 per barrel in the last five weeks. Oil, being an essential commodity in any economy, becomes dearer as its demand grows on account of recovery in the global economy. In addition, the U.S. dollar has depreciated against a basket of currencies in the last 5 weeks. A weak dollar leads to an increase in cost of imports including oil. Oil hit a record high of $147 per barrel last summer. While the current level is nowhere near $147, analysts are worried that the prospects of economic recovery may get hampered if oil prices continue to rise.

With unemployment at a high, consumers are not in a position to absorb raising costs. Gasoline prices go up by 2.4 cents for every one dollar rise in crude. James Hamilton, an economics professor at the University of California, San Diego, says if the gasoline price increases, it could "postpone some of the recovery we'd been hoping for."

Rise in mortgage rates threatens the housing market

Aaron Gallagher (Green Street Realty ) — Mon, 01 Jun 2009 10:39:01 -0500

Mortgage rates have risen to their highest level in the last 3 months. The average rate for a 30-year fixed mortgage jumped to 5.44% yesterday. This is in line with the steep increase in the yields of long-term treasury bonds. The 30-year rate was at a record low of 4.78% in April. The decision of the Federal Reserve to buy $1.25 trillion of mortgage securities and $300 billion in Treasury Notes this year led to a drop in mortgage rates early this year. Lower rates, in turn, led to an increase in mortgage applications.

Analysts are now worried that the surge in mortgage rates could impact the economy adversely by curbing consumer spending. Mahesh Swaminathan, a mortgage strategist at Credit Suisse Group, says, ""The spike in rates has the potential to derail a lot of things." According to Credit Suisse, a rise of 0.1% in mortgage rates translates into a 1% increase in home prices. Higher rates will hit home prices and sales. Ben Bernanke, Chairman of the Federal Reserve, referred to early signs of economic recovery as "green shoots" in an interview recently. T.J. Marta, a financial analyst, says, "If the Fed does not step in, you are going to see the 'green shoots' get frost bite."

Foreclosures are on the rise this year

Aaron Gallagher (Green Street Realty ) — Thu, 28 May 2009 14:40:40 -0500

As the unemployment rate threatens get into double digits from the current rate of about 9%, analysts expect foreclosures to go up significantly in future. The new wave of foreclosures will include not only sub-prime borrowers, but also borrowers who were once financially healthy but are falling into bad times as a result of job loss. Mark Zandi, chief economist at Economy.com, a provider of economic analysis, has said that "loss of jobs and loss of overtime hours and being forced from a full-time to part-time job is resulting in defaults. They're coast to coast."

According to Economy.com, unemployment will account for 60% of mortgage defaults this year. The Obama administration announced a $75 billion incentive program for mortgage companies that reduce payments for troubled homeowners, in February. The program was estimated to help at least 4 million homeowners facing foreclosure. With the employment situation not showing any signs of improvement, experts are now wondering how effective the plan will be. Alan Ruskin, chief international strategist at RBS Greenwich Capital says he doesn't "think there's any chance of government measures making more than a small dent."

Home Resales Up 2% in April

Aaron Gallagher (Green Street Realty ) — Thu, 28 May 2009 14:39:18 -0500

According to a survey conducted by Bloomberg News, resales of home rose by 2% in April from March. Falling prices, tax credits, and low mortgage rates may be contributing to an increase in home resales. The rise in foreclosures also helped home resales. Foreclosed properties accounted for 50% of home resales in March. "Home sales are being boosted by foreclosure sales and that's helping to keep activity stable," says Celia Chen, an economist at Economy.com, a provider of economic analysis. Many analysts believe that the market is stabilizing. "Home sales and construction activity are probably at the bottom," said Chen. Robert Niblock, Chief Executive Officer of Lowe's Companies, a large retailer of home-improvement products, said in a conference call that "there have been some encouraging signs in recent weeks that suggest perhaps the worst is behind us. Consumer confidence has ticked up. Housing turnover, especially in certain markets, is showing signs of a bottom."

Property taxes may drop due to declining property prices

Aaron Gallagher (Green Street Realty ) — Thu, 28 May 2009 14:36:47 -0500

With property values declining, can homeowners expect to pay lower property taxes? Yes, in some cases. Property values are reappraised by assessors in cities and counties annually or biannually. The reassessment happens on the basis of recent sales of comparable properties in the neighborhood. Property taxes could drop in areas where there has been a significant drop in property prices. Rick Auerbach, Los Angeles County Assessor, says, "Assessors have been flooded with requests from homeowners to reassess their home values." Reduction in appraised values may not automatically lead to a property tax cut since governments may raise tax rates in order to make up for the drop in tax collections. However, raising rates is not an easy option for governments. Ken Wilkinson, the property appraiser for Lee County in Florida, says, "In most places there's a statutory limit to rate increases. In Florida, they can't be raised more than 10%."

High-end housing market is still languishing

Aaron Gallagher (Green Street Realty ) — Thu, 28 May 2009 14:34:42 -0500

According to the National Association of Realtors (NAR), home sales rose 2.9% in April from March. While sales in the low-end properties segment have risen, the market for high-end properties is still sluggish. Sherry Chris, chief executive of Better Homes and Gardens Real Estate, says, "We're looking at a dual market right now." Mortgage for expensive properties is getting difficult to obtain on account of lenders tightening their lending standards. The government controlled mortgage companies such as Fannie Mae and Freddie Mac cannot purchase loans above $730,000, which are commonly referred to as "jumbo" loans. Jumbo loans which accounted for 17% of the mortgage market two years ago, now account for just 5%. In most places, there is no significant interest for properties over $1 million. Ben Coleman, owner of Century 21 Hartford Properties, says, "That's where we're really feeling the pinch." Lawrence Yun, chief economist at NAR, has urged the Federal Reserve to buy up jumbo loans in order to restore liquidity in the high-end mortgage market.

Stress test preview

Aaron Gallagher (Green Street Realty ) — Thu, 07 May 2009 12:24:46 -0500

Regulators have told Bank of America it needs $34 billion of capital, Citigroup needs $5 billion, Wells Fargo needed $15 billion, Morgan Stanley needs $1.5 billion and GMAC needs $11.5 billion, according to recent leaks. The reported capital shortfalls are much larger than analysts had expected, but investors aren't panicking, because the banks seem able to handle the shortfalls, and in any event any news is better than uncertainty. Treasury Secretary Timothy Geithner said that no U.S. banks face the risk of insolvency, even though more than half of the 19 tested are presumed to be in need of capital, if we can believe the flood of leaks in the media lately. "None of those 19 banks are at risk for insolvency," he said, according to a transcript of a television interview. Geithner also said the pace of the U.S. economic decline was slowing, even as the economy still faced enormous uncertainty, but we all knew he'd say that, didn't we? He and Bernanke say it about twice a
day these days. It kind of covers all bases and leaves a backdoor open; if the economy improves, they can claim credit, and if it goes south, they can claim it's due to the "uncertainty."

Jobless claims down, unemployment up

Aaron Gallagher (Green Street Realty ) — Thu, 07 May 2009 12:17:56 -0500

The US Labor Department released a report showing that initial claims for unemployment benefits fell last week, as the number of people filing claims on an ongoing basis rose to a fresh record high. Economists had expected 635,000 new claims, according to a consensus survey by Briefing.com, but according to the report, in the week ended May 2, 601,000 people filed initial jobless claims, down 34,000 from an upwardly revised 635,000 in the previous week. This report comes on the heels of the two private sector reports we told you about yesterday, and seems to strengthen the notion that the rate of decline is slowing, even if the numbers of people on unemployment is rising. The unemployment rate is forecast to rise to 8.9% from 8.5%. Hey, let's be optimistic and call it good news.

Home Prices Fall Again!!

Aaron Gallagher (Green Street Realty ) — Tue, 31 Mar 2009 13:02:59 -0500

The S&P Case-Shiller Home Price Index, measuring housing prices in 20 representative cities across America, fell for the 30th straight month in January, bringing house prices down to 2003 levels. And this time it actually set a record, falling 19% from January 2008. "There are very few bright spots that one can see in the data," said David Blitzer, chairman of the index committee at Standard and Poor's. "Most of the nation appears to remain on a downward path, with...nine of the MSAs (metropolitan statistical areas) falling more than 20% in the last year." According to Mike Larson, a real estate analyst with Weiss Research, home prices won't start advancing until the overall economy picks up.

Home bargains galore

In total, prices have plunged 29.1% nationally since they peaked during the second quarter of 2006, but that of course doesn't figure in individual cities, where prices are more varied. Dallas is the least affected at 4.9%, and Phoenix lost the most, at 48.5% from its peak. All 20 index cities were in negative territory, but the biggest losers are Las Vegas, Miami, Phoenix, San Francisco, and San Diego -- each losing more than 40%. The bad, and good, news is that the rate of decline has picked up recently. As Mike Larson, a real estate analyst with Weiss Research says, ""Arguably, that's just what we need to drive up sales activity and reduce inventory."

Big boys ready to pounce

Morgan Stanley is one of several early bird institutional investors getting ready to snap up real estate bargains -- it's close to raising $6 billion for a new global property fund: the Morgan Stanley Real Estate Fund VII Global. "I think these new real estate funds will look for distressed opportunities and they think they can bargain with developers who mismanage the balance sheets or have liquidity issues," said Laure Wang, managing director of Asia Alternatives, a private equity fund of funds. According to Paul Vosper, chief operating officer for real estate at Morgan Stanley's Alternative Investment Partners unit, the downturn in global property markets will create a period of strong returns.

Don't Listen To The News About Home Prices!!

Aaron Gallagher (Green Street Realty ) — Tue, 24 Feb 2009 11:37:32 -0600

While we all know that the economy is hurting and that housing has a few bruises don't take everything the news says as fact. It's true that home prices have been declining but please remember that the areas that went up the fastest crashed the hardest. Every market is different and you'll only know how your area is doing by talking to a local real estate professional. Please contact me anytime if you have any questions about our local market conditions I'm always here to help.

How Does the Home Buyer Tax Credit Work?

Aaron Gallagher (Green Street Realty ) — Mon, 23 Feb 2009 10:04:15 -0600

There is so much going on regarding housing and the economy it's getting harder and harder to keep up. I wanted to include a link from the NAR (National Association of Realtors) that has a good description of how the modified tax credit works. Please take some time and review the information and see if it might benefit you. Even though times are tough there are some great opportunities to purchase a good home at a great price. Remember I'm always here to help so please don't hesitate to call ........ Click Here