WARNING: Don’t watch this video (or read this blog for that matter) if you only want to hear “rosey…housing has hit bottom”…type news.
Harris Real Estate University believes in preparing students for the worst…yet, hoping for the best.
So, here it is….simply staggering housing data released today:
1) 14.4% of ALL mortgages delinquent (or already in foreclosure) in the US. Read that again and ponder how significant that really is…14.4% of ALL homeowners with a mortgage are behind or already IN foreclosure. That is a historic record.
2) Ready for this….PRIME borrowers…as in NOT SUB-PRIME….borrowers are now the leading edge of this epic housing mess. 33% of all delinquencies (and those already in foreclosure) are PRIME.
Agents: If you are ready to become a REO listing agent…KNOW THIS…its not too late for you. Listen to this 90 minute How-To List REOs Teleconference (or webinar). You are about to learn exactly what you must do now to become a REO listing agent. Listen to replay NOW.
3) Next fun fact: 144% INCREASE in FHA delinquencies year over year. Anyone want to place any bets on the long term viability of the FHA in its current incarnation? Anyone?
4) Saved the most staggering stat for last…get ready…The total number of delinquent (and in foreclosure) homeowner/ borrowers is GREATER than the total number of homes for sale. Lets put this into perspective: There are currently around 4,000,000 homes for sale in the country. Thus, there are MORE THAN 4,000,000 homes delinquent or already in foreclosure. Rounding this out a bit, many studies have estimated the total number of homes in the US that are foreclosure bound (if the homeowner doesn’t wise up and sell the home via a short sale) is 13,000,000 to 15,000,000.
Important Breaking News: Housing Taking Another Downturn?
Housing Double Dip?
Seems that the latest housing information is not as rosey as many expected. HREU Students should not be surprised by any of this information. Clearly, we are years (and years) away from any sort of leveling off. Estimates are that there are 12-15,000,000 homes that will be REOs over the next 1-3 years.
Are YOU ready to become a REO Listing Agent? Join us for tomorrow’s FREE How-To list REOs teleconference or webinar. Go here now for all the call-in info.
(So huge in fact that this info is copyrighted. Reused at your own risk. If you want to republish this info…request permission first.)
We have been sitting on this ’story’ because I wanted to make sure that all the details were correct. Having spent the last week or so researching this for you I am reasonably confident that this info is 95% correct.
Why not 100%…read on…
Get ready for this….according to this lender, and the info he provided in this post…its now possible for someone who has closed on a recent short sale to buy another home. Yes, you read that correctly….short sale today…buy another home tomorrow. NOT a buy and bail.
Epic.
So, what will this mean to you…? Lets consider the ramifications:
1) EVERY Short Sale Seller that you have can now buy IMMEDIATELY following the close of their short sale. That means all of you who are in Agent Short Sale Secrets could literally double your sales! (Obviously, there are rules and such…read this post for the details.)
2) All of the homeowners you know who are barely holding on to their upside down home can (and should) sell the home via short sale…and provided they meet the requirements…they can buy another home immediately.
3) How many homes will you sell now that you have this info? All the homeowners who did short sales in the past…call them. All you current short sale listings…call them. Everyone you know who is drowning in their upside down home only staying afloat because they fear not owning a home…call them. You get the idea.
FULL DISCLOSURE: I did my best to research this. If there are factual issues please let me know asap. From what I have learned thus far, this new lending program is on the very leading edge of the mortgage industry. If you have any specific questions please contact the lender directly. We are not attorneys, accountants etc. We always encourage students to seek professional advice when needed.
Here it is....the news we have all been waiting to hear.... This is reason to celebrate....the 'first time home buyer' $8000 tax credit has been extended...and....you will love this....it now includes.. MOVE UP BUYERS. Of course, there are many rule...limitations and other sticking points that you need to be aware of. But, bottom line...they have extended the credit.
Either way, you have lived through the worst aspects of the housing crash.
For that, you should congratulate yourself. You are a survivor. There is something special within you that has allowed you to do what hundreds of thousands of other agents couldn't (or wouldn't) do.
Now, lets focus forward and be prepared for what is coming next.
You and I need to have a heart-to-heart chat about what you should be doing now...so that you can move from being merely a survivor and join the ranks of the agents who are now the nation's new top producers.
We have been warning the real estate community that the foreclosure ‘crisis/ mess/ epidemic/ whatever’ would only get worse....for well over a year.
Some agents listened...some agents ignored the message....some agents responded negatively......
Regardless, we continued to share what we knew to be true with as many agents who cared to listen.
Its our sincerest hope that we helped many of you. For those of you who have yet to 'tune in' know this....its NOT TOO late for you. You can do this. You can easily follow in the footsteps of the thousands of Realtors who have successfully transitioned from denial...to acceptance...into discovering that this market is nothing to fear. Matter of fact, once you learn what this market requires you can help MORE people and make MORE money than you could of ever thought possible....
Do you need a free coaching call? If you need help..of any kind...regardless if you are a HREU student or not...request a FREE Coaching Call.
We did this while it seemed the rest of the real estate industry spent most of the year reporting that housing had ‘reached bottom’.
Listen, I 100% understand why so many agents believe they can only be successful when the market is headed up. Heck, that's what the boom market was all about. When homes were quickly appreciating it was easy to motivate folks to buy and sell. For a while, owning a home was akin to possessing a winning lottery ticket.
But, that's not our reality now...is it?
So, here it is....
HREU Students (and future students)….at best we are half way through this real estate correction. (Watch the video now that explains the current real estate market cycle) Expect at least another 1-3 years of ‘correcting…lowering..home prices’ followed by a slow climb back to '07 home values. Its been reported many times that homes won’t return to peak values for 10+ years in some markets.
If you are are an agent who expects to be in the real estate business in the Spring there are 2 things that you must be mastering NOW: Short Sales and how-to list REOs. There is no question that these 2 skills should now be considered mandatory.
Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.
“They were the worst three months of all time,” said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.
During that time, 937,840 homes received a foreclosure letter — whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.
Realtors, its NOT too late for you to learn how to become a REO Listing Agent. Staggering fact…the banks simply don’t have enough REO listing agents. Its now being estimated that the number of foreclosures coming isn’t…5,000,000…ins’t 7,000,000…but, 13,000,000! Nothing like this has ever happened before. Watch the FREE Agent REO Secrets video and then download your FREE Agent REO Secrets book.
Nevada continued to be the worst-hit state with one filing for every 23 households. But even tranquil Vermont, where the foreclosure crisis has barely brushed the housing market, saw foreclosure filings jump nearly 170% compared with the third quarter of 2008. Still, that resulted in just one filing for every 5,023 households in the state — the best record in the country.
The RealtyTrac report also unveiled the results for September, and it found that there was slight relief from foreclosure filings. Last month, notices totaled 343,638, down 4% compared with August. Unfortunately, that total accounts for 87,821 homes that were repossessed by lenders.
That deluge contributed significantly to the quarter’s record 237,052 repossessions, a 21% jump from the previous three months. So far this year lenders have taken back 623,852 homes.
“REO activity increased from the previous quarter in all but two states and the District of Columbia, indicating that lenders may be starting to work through some of the pent-up foreclosure inventory caused by legislative delays, loan-modification efforts and high volumes of distressed properties,” James Saccacio, RealtyTrac’s CEO, said in a statement.
Most disturbing is that all foreclosures — not just repossessions — are rampant despite efforts to corral them. Not only has the Obama administration’s Making Home Affordable foreclosure prevention program taken a bite out of REOs but lenders themselves have scaled back repossessions over the past few months to give the program time to work.
And in some low-price markets, lenders simply aren’t following through on foreclosures, according to Jim Rokakis, treasurer for Cuyahoga County, Ohio, which includes Cleveland.
“They’ll even set the date for the sheriff’s sale, but they don’t file the final papers,” he said. “They hold it in abeyance and let the residents stay in the house.”
In ever more frequent cases, delinquent borrowers want out of the mortgage worse than the lenders. There are no firm statistics for it, but many industry watchers claim the percentage of REOs caused by borrowers voluntarily walking away from their homes is skyrocketing.
Agents, did you read that last sentence?
The number of homeowners who are deciding to simply ‘walk-away’ is skyrocketing! What does that mean to you?
Considering what is happening in your real estate market…with so many homeowners upside down…if they must sell..and their listing agent doesn’t know how to do a Short Sale..what happens? They lose the home to foreclosure. You can help them avoid the foreclosure blight and earn tons-of-dough when you list and sell their homes through the Short Sale process. Watch the FREE Agent Short Sale Secrets video and then download the FREE Agent Short Sale Secrets crash course!
A study of the trend by the Chicago Booth School of Business and the Kellogg School of Management determined that when home price declines drop home values 10% below the mortgage balances, people start to give up their homes. When “negative equity” approaches 50%, 17% of households default, even when they can still afford their mortgage payments.
No end in sight
The foreclosure crisis may not diminish anytime soon. “The fastest growing area is in the 180 days late-plus category, the most seriously delinquent borrowers,” Sharga said. “It’s going to be a lingering problem.”
Plus, the RealtyTrac statistics may understate the depth of the foreclosure mess because lender and government actions have delayed many filings. As a result, some delinquencies have not been counted on the foreclosure tallies. That means the crisis may not end quickly.
And because there are so many delinquent borrowers, Sharga predicts the banks will be slow to take back their properties and put the repossessed homes back on the market.
“It’s hard to envision [the banks] putting millions on properties up for sale and cratering prices,” he said. “Recovery will be slow and gradual. I don’t see home prices getting much better until 2013.”
The only question is...how many home owners will YOU help in 2010? How many REO Listings will YOU represent in 2010? NOW is the time to take action, to be sure you don't just 'survive' another year, but that 2010 is your year to THRIVE.
Every week we receive literally hundreds of question from HREU Coaching Students……..One of the most common question we have been receiving this week has been….
“When will the housing markets FINALLY hit bottom?”
If you thought home prices were bottoming out, you may be wrong. They’re expected to head a lot lower.
Home values are predicted to drop in 342 out of 381 markets during the next year, according to a new forecast of real estate prices.
Overall, the national median home price is predicted to drop 11.3% by June 30, 2010, according to Fiserv, a financial information and analysis firm. For the following year, the firm anticipates some stabilization with prices rising 3.6%.
In the past, Fiserv anticipated the rapid decline in home-sale prices over the past few years — though it underestimated the scope.
Mark Zandi, chief economist with Moody’s Economy.com, agreed with Fiserv’s current assessments. “I think more price declines are coming because the foreclosure crisis is not over,” he said.
In fact, those areas with high concentrations of foreclosure sales will experience the steepest drops, according to Fiserv. Miami, for example, is expected to be the biggest loser. Prices are forecast to plunge 29.9% by next June — after having already fallen a whopping 48% during the past three years.
If Fiserv’s forecast holds, Miami real median home price will tumble to $142,000 by June 2011.
In Orlando, Fla., the second-worst performing market, Fiserv anticipates a 27% price collapse by June 2010, followed by a less severe drop the following year. In Hanford, Calif., prices are estimated to drop 26.9% and continue falling 9.5% in 2011; in Naples, Fla., they’re expected to fall 26.8% and then flatten out.
Other notable losers include Las Vegas, where prices have already fallen 54.6% and are expected to lose another 23.9% by June 2010. In Phoenix values have already collapsed by 54% and could fall another 23.4%. In both cities, Fiserv anticipates the losses to continue into 2011, but they will be less than 5%.
E-GAD….we live in Las Vegas….I hope this guy is wrong…but, I bet he is not. What will this kind of epic depreciation mean to your real estate business…regardless of where you sell real estate? Understand…accept and take action knowing that you simply must become a Short Sale Specialist. Learn the NEW ways to easily list and sell short sales. Watch the FREE Agent Short Sale Secrets vode and grab your FREE Agent Short Sale Secrets book.
Prices had stabilized
The latest forecast is at odds with the past few months of the S&P/Case-Shiller Home Price index. That report has given hope that most housing markets may have already stabilized because the composite index of 20 cities rose in May, June and July. Nationally, it found that home prices have gained 3.6%.
Brad Hunter, chief economist for Metrostudy, which provides housing market information to the industry, however, expects a change in fortunes, however.
“I’m afraid Case-Shiller may be just a temporary reprieve,” he said.
He pointed out that the tax credit for first-time home buyers helped support prices during the three months of Case-Shiller gains. By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors. But the market assistance ends when the credit expires on Dec. 1.
Hunter also sees a new wave of foreclosure problems coming from higher priced loans and prime mortgages. He expects a high failure rate for option ARM loans that were issued to prime customers so they could buy homes in bubble markets, such as California and Florida. In those areas, prices for even modest homes had skyrocketed.
Winners
A handful of metro areas will buck the trend, according to Fiserv. Six markets will remain flat, and 33 will actually post gains. The biggest winner will be the Kennewick, Wash., metro area, where home prices have ramped up 8.9% over the past three years and are expected to increase another 3.4% by June 2010.
Fairbanks, Alaska, prices are anticipated to rise 2.5%, while Anchorage will climb 2.1%. Elmira, N.Y., prices may inch up 1.8%.
The nation’s biggest metro area, New York City, will underperform the nation as a whole over the next two years, according to Fiserv. Prices, which have already fallen 21.7% to a median of $375,000, are expected to fall 17.4% by June 2011.
Home values in the nation’s second largest city, Los Angeles, have fallen 43.3% since June 2006 to a median of $313,000. They are expected to dive another 20.2% over by June 2010, and then start to climb in 2011. Chicago prices, which have fallen 25.2% to $227,000, will drop only 4.1% over the next 12 months and then starting to climb.
The Detroit metro area now has the dubious distinction of having the lowest home prices in the country. Prices have dropped 51.7% to a median of $50,000. They’re expected to fall another 9.1% and then stabilize
Joel McClintock. Why did we choose Joel to be a Harris Real Estate University Superstar?
Simple, he and his wife have become Short Sale selling machines.
This year alone they are tracking to list and sell 60+ short sales....with a 98% close rate!
Here is the information you need for your schedule:
EVENT: FREE Super Star Interview DATE & TIME: Friday, October 23rd at 9:00am Pacific FORMAT: Simulcast! (Attend via Phone or Webcast — it’s your choice) TO ATTEND THIS EVENT, CLICK THIS LINK NOW… http://instantTeleseminar.com/?eventid=9313635
Here is Joel’s Bio:
(oh…..in case you were wondering….that is a REAL picture of Joel!)
Joel McClintock was born in Canada but spent much of his early years in Florida training for competitive waterskiing. His waterskiing career pinnacled in 1979 when he won the World Men’s Overall title. The discipline of sport was carried over to professional life as a Broker/Realtor in Canada.
McClintock specialized in residential sales but also acquired extensive experience in investment properties and property management. In 1992 The McClintock Family uprooted from the cold Canadian weather and moved back to Florida. In the following decade McClintock was a major part of the development and sale of Lago del Sol, an exclusive Waterski Community in Lake Worth. He has sold more than 50% of the properties in the development. McClintock and his support team understand the meaning and need for professional service when buying or selling your home. In 7 years in the real estate business in Florida McClintock was consistently a top producer and enjoyed a prosperous period during the recent boom years.
With the recent shift in the market came a huge reduction in income in 2007…….
………Fortunately, about the same time we heard about Harris Real Estate University.
McClintock was quick to make the transition to distress property specialist with the help of Tim and Julie Harris and the Harris Real Estate University short sale program. He was also quick to bring his wife, Michele, into the business to be the bank negotiator. The HREU program made it possible for us to abruptly make the shift and quickly become effective dealing with the “New Frontier” of real estate which we all know as short sales. Since making the shift we have essentially become short sale specialists.
In 2008 we closed 28 short sales.Year to date in 2009 we have closed 38 short sales …..and have approximately 20 in the pipe that we expect to close by year end for gross sales of approximately 60 short sales! We look forward to continued success with short sales and plan to grow in other areas – of course with Tim and Julies help. Thanks to all at HREU
Will the first time home buyer credit be renewed…or even better…extended?
THAT is the question…..
As all of you know…the ‘first time home buyer’s’ credit was a huge boost to housing.
We can argue the long term benefits or detriments of these sorts of government handouts later…..we have heard from HREU Coaching Student from all over the US how crucial a continuation of this program is for any sort of meaningful long term housing recovery. At this point everyone knows that the economy goes where housing flows. Homes sell…fewer foreclosures….eventual leveling off of home values…and then a return to a stable market.
Here’s the tough part, there is no guarantee that there will be an extension of this program. We reported on this blog yesterday that there may be movement away from this program towards others by the Obama Administration.
Here’s a new video from CNBC Rock-Star Diana Olick. If you have yet to discover Diana…check her out. No question that she is the best reporter about all things housing. She cuts through the fluff and gives you the bottom line:
It seems that the banks (and the politicians) won't be able to hide the real facts any longer. If these new reports are to be believed, there is going to be massive changes happening to the real estate markets over the next 90-120 days.
Read the artucle on the blog and let us know what you think..
If you're considering hiring a real estate coach to help you take your real estate sales career to the next level, please consider requesting a free coaching call so that you can get a feel for what Harris Real Estate University, our programs, and our great team of real estate coaches has to offer....
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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