housing market: Is Housing Still A Great Investment? - 03/31/10 09:58 AM
With home prices and sales remaining in a serious slump, is housing still a great investment? The short and disappointing answer is: No, housing in general isn’t now, nor has it ever been a great investment. But the long answer is somewhat more complicated and offers hope for homeowners or those who look to becoming a part of the “landed gentry.”
 
For more than a century, except for the period between 1987 and 2006, home prices, adjusted for inflation, have remained basically flat. And during the boom, inflation adjusted prices only grew by about 3%. But if that’s the case, … (10 comments)

housing market: Home Builder Sentiment Remains Negative - 03/16/10 07:30 AM
With new home prices unable to compete with foreclosures, U. S. Home builder sentiment remains negative. According to a March 15th report on MarketWatch, the builder confidence index has fallen 2 points since February, with home builders continuing to struggle against foreclosures and short sales, many of which are priced below the actual costs of construction.
 
Builders in many areas were also hampered by record snowfalls, keeping both construction and buyer activity far below normal. Not that most builders are eager or even able to start new homes; lenders, still weighted down by “toxic assets,” and unsure of the government’s … (11 comments)

housing market: Six Reasons Why the Housing Market Peaks Can Not Return - 02/25/10 07:01 AM
Recent conflicting reports about the housing market and whether or not it is truly in recovery have left consumers as well as those in the real estate business more than a bit confused; those whose business plan is dependent upon a full or quick recovery should proceed with caution. I believe the housing market is far from recovered, and, in fact, will not return to the levels of the past decade for many years—if ever. I see six reasons why the housing market peaks can not return, that it will never regain its past “glory days.”
 
● Robust home sales … (183 comments)

housing market: Let’s Call It Like It Is—It’s Not A Recovery - 02/18/10 12:22 AM
Following its most recent meeting, the Federal Open Market Committee (FOMC) has issued a statement of its projections about the economy, but instead of “sugar coating” or garbling the message, let’s call it like it is—it’s not a recovery. Chairman Bernanke had already warned us to expect a “jobless recovery,” but exactly what is that? Isn’t that just another way of saying, no recovery? Those without jobs or who are bringing home smaller paychecks or whose employment remains precarious, would have difficulty agreeing that their financial picture is recovering.
 
For those of us in real estate related businesses, the FOMC … (16 comments)

housing market: What Do The Employment Statistics Really Mean? - 01/09/10 01:22 AM
Okay, we’ve heard that the jobless rate increased in December, but what do the employment statistics really mean? Friday’s employment report indicated that nonfarm payrolls fell by 85,000 workers, with total job losses for 2009 standing at more than 4 million. Additionally, the report indicated that the November number had been revised to show a gain of 4,000 jobs. Some reports seem to place a positive spin on the numbers, pointing out that the overall unemployment rate failed to climb above 10%, and that December was the fifth consecutive month that hiring at temporary help services has increased.
 
So, what … (20 comments)

housing market: Think Resale - 10/15/09 02:06 PM
A factor that is often overlooked when purchasing a home is the ease with which that home can be re-sold. While we may find wonderful homes in neighborhoods that meet our every requirement and plan to stay there for a lifetime, THINGS CHANGE. The unpredictable happens. Family sizes, relationships, work location, and lifestyles are not as permanent as we might wish and can change dramatically. Virtually all homes bought will be sold at some future time. Homebuyers should always think resale.
 
When selecting a home, the resale factor must be considered. Though the importance of resale may be less … (6 comments)

housing market: A Bit Of Positive Housing News - 09/23/09 11:47 PM
Based upon current news reports, one would assume that homeowners across the country have lost all their equity. Has that really happened?
 
Most whose homes are underwater purchased in the last 2 - 5 years, when housing values were reaching their peak. But what about the majority of us who purchased five, ten, fifteen years ago or longer. Are our homes worth less than we paid? No. And it’s a fact few are discussing. They don’t consider it newsworthy.
 
My own home, for instance, was purchased in 2002. Even though its value has declined from what it was eighteen … (22 comments)

housing market: Housing Predictions For 2010 And Beyond - 09/20/09 10:15 AM
Okay, I’m going to do something I normally avoid; I’m going out on a limb and publicize my housing predictions for 2010. While I occasionally discuss general trends and opinions about the market, I think it’s important for all of us to have as much information as possible in order to properly plan our futures. And while this is only my opinion, after all, it’s the only one I can offer; it’s based on 4 decades of experience combined with careful observations of current trends and conditions. Here is what I see for the future of housing:
 
I think the … (204 comments)

housing market: The Missing Keys To Thriving In Any Real Estate Market - 09/12/09 02:10 AM
In his new book, The Missing Keys To Thriving In Any Real Estate Market, Eddie Godshalk answers questions about the collapse of the housing market and describes how investors and consumers can avoid such disasters in the future. Readers will find a detailed analysis and answers to some of the most pressing questions regarding the current housing crisis, such as: What is the crucial bit of missing information that contributed to the collapse of the housing market and the ensuing recession? What did investors, home buyers, lenders, and Realtors® lack that would have allowed them to accurately foresee looming disaster?
 
… (9 comments)

housing market: 10 Tips Guaranteed to Bring Buyers To A Home - 08/24/09 01:50 AM
With housing experiencing its toughest market in decades, anxious sellers want to know if there is something they can do to speed the sale of their home, and the answer is yes; the following are 10 tips guaranteed to bring buyers to a home:
1. Make your home irresistible. By following a few simple steps, sellers can make their home rise above the competition. Click HERE to learn how.
2. Price the home at or slightly below market. If you are underwater with your mortgage, consider a short sale. If you need to sell don’t wait; prices may continue to decline, … (35 comments)

housing market: Why Hasn't Our Home Sold? - 08/19/09 07:45 AM
Dear Agent,
Why hasn’t my house sold? You’ve had it listed for 3 months and we haven’t yet even had an offer. We’ve done everything we can do, yet we’re hardly getting any traffic. It makes us wonder if you’re doing your job.
Since we’ve done our part, the fault must be yours. Just so you remember, here is a list of all the things we’ve done.
Every time you tell me you’re showing our house, I lock Brutus, our German shepherd, in the laundry room. I know you said he barks real loud, but that’s part of his guard dog … (15 comments)

housing market: 10 Tips For Winning A Bidding War - 08/01/09 03:11 AM
Okay, so you’ve just found the home of your dreams, the bargain of a lifetime, or that perfect investment opportunity; and now someone is trying to snatch it from your grasp. Perhaps there are multiple offers. What do you do?
 
The first thing to do is analyze your situation. Is this truly a “must have” home—it’s located near the in-laws who will be available for baby-sitting—it’s the only home available in the perfect school district—it’s near your church, favorite mall, or work. Perhaps it’s all of the above, but is it truly unparalleled? Don’t let your emotions overrule common sense.
… (21 comments)

housing market: Are You Prearing For The Market To Return Or For The Market Of Tomorrow? - 06/27/09 07:13 AM
With the economy in turmoil and the housing market still in crisis, are you waiting for the economy to rebound or preparing to deal with a changing market? Both the housing and real estate industries are expected to see significant changes in the coming decade, and those who aren’t mired in the old ways of conducting business, but who are flexible and willing to change will prosper.
 
Most experts are predicting housing to experience changes in size, the manner of construction, and community design. Expected increases in energy costs will cause consumers to consider smaller, more efficient designs and to … (6 comments)

housing market: Cliff Diving And Silver Linings - 06/24/09 07:17 AM
While sales of existing homes have begun to show some evidence of life, new home sales appear to be practicing the art of “cliff diving.” Sales of new homes reached a new record low for the month of May, and builders across the U.S. are struggling to make ends meet. But why aren’t the ratios between new and existing homes comparable? I believe there’s one major factor, and that is price.
 
Builders who are still marketing homes built during the past year or two, have a set cost in those homes, and are generally unwilling to sell them at a … (5 comments)

housing market: Hot Tips for Sellers on Blog Talk Radio - 06/23/09 06:42 AM
Home sellers competing with foreclosures and poor sales traffic can get the latest tips to make their home rise above the competition. John Mulkey, The Housing Guru, will be featured tomorrow on BlogTalkRadio at 12:00 eastern time. John will address the difficult issues that sellers face in making their home rise above the competition and will provide specific tips on how to do so.
 
Armed with the knowledge gained during his 40 year career in marketing homes, John shares the tricks and techniques used by the housing giants, and explains how sellers can inexpensively adapt those methods to help them … (4 comments)

housing market: Housing Prices Follow Unemployment - 06/21/09 05:07 AM
In a post today in Calculated Risk, there is an interesting graph that tracks the jobless rate and housing prices. And the graph shows what most of us already knew. Housing prices increase during periods of high employment and decrease when jobs are scarce. It‘s really a pretty simple concept, when people have more money, they drive up prices of goods, services, and housing.
 
What this tells us is that we’re not likely to see stabilization in the housing market until the jobless rate shows a significant decline. And that isn’t likely to happen until next year at the earliest. … (4 comments)

housing market: Let's Stop Kidding Ourselves about a Recovery - 06/20/09 09:04 AM
Many financial “experts” have called for the end of the recession by mid year; and with improving employment numbers, consumer confidence, increased housing starts, and mid year upon us, can we call the recovery now? While I’m not trying to soil the optimism with a bit of dirty truth, let’s examine a few facts.
 
• Unemployment has climbed to record numbers, and while the government is telling us the jobless rate is “only” 9.4%, by now most are aware that their numbers exclude millions—somehow, according to the government’s formula, you’re not unemployed if you are no longer receiving benefits. Government … (20 comments)

housing market: 10 Steps to Beat the Competition and Sell Your Home - 06/20/09 04:54 AM
In a buyer’s market, it’s necessary to take extra steps in order to sell your home. Removing clutter, cleaning, and touching up paint are just not enough. Below I have outlined several strategies that will make an average home rise above the competition. This list assumes that the home already sparkles both inside and out with no obvious buyer objections.
 
1. Hire a PROFESSIONAL home stager. If you truly want your home to rise above all competition, you’ll have to do some staging. Review each room and make changes as necessary to remove potential objections that might be a buyer … (7 comments)

housing market: Builder Sentiment Declines. No Kidding! - 06/15/09 06:33 AM
In an article in MarketWatch today, it was reported that homebuilders had grown a bit more pessimistic about future prospects. Duh. With only one out of six builders perceiving the current market as good, the decline reflects the first reversal since January.
 
To expect builders to feel positive about this market would be irrational. Builders realize that three ingredients are needed in order see any significant increase in the demand for new homes. First, the glut of existing homes and foreclosures must be reduced; we must stop the continual bleeding in foreclosures; and we must see stabilization in the job … (3 comments)

housing market: Can I Afford To Have My Home Staged? - 06/12/09 07:48 AM
As a former homebuilder with 40 years experience, I can say without equivocation that professionally staged homes have a distinct advantage over non-staged homes. I can say this as I have had direct experience with the sales of thousands of homes during my career.
 
With several years in the corporate world of home building, I saw first hand the advantages of staged homes. That’s why ALL major homebuilders, including the ones for which I worked, had professionally decorated model homes in each neighborhood. And strangely, the model home plan was always the big seller in that neighborhood.
 
The simple … (11 comments)