Two Nights ago my three year old boy woke me up crying about his nose bleeding. Being the super dad that I am, I calmly told him, "Don't worry the bleeding will stop."
It took about five minutes before it totally stopped and sure enough I was the hero in my boy's eyes after which he said, "You're smart dad, you know everything".
Basing it on my past experiences with nose bleeds, I knew for sure that it will stop. I just could not make it stop right there and then when my son demanded it.
It's pretty much the same with the Reno and Sparks home Market . We know the real estate bleeding will stop, we just don't know when.
Many times I wish I can see the future. I, being the Super Dad or in this case the 'Super Realtor' would be the hero to assure everyone, "Don't worry the bleeding will stop in____ of this year___...." How i wish... but no, I am just a mere mortal like everyone else.
But here's the thing, the market will give us clues on where it is heading. One of the ways is looking for the existing home sales. Is it starting to go up, are more homes being sold at a shorter period? the average price of homes, is it starting to appreciate? how much compared to the previous year? We don't have to fly blind. There are ways the we can significantly reduce the risk when buying a home in the Reno Sparks area.
The goal of this blog is to help you do just that.
Please read the article below that I got through my email from Real Estate News Daily which gives one reason on what's happening in our market, and why it will continue.
Mortgage Crisis: What Went Wrong?
Nearly 2 million mortgages are scheduled for rate increases this fall, which is expected to send foreclosures soaring.
President Bush has blamed the failure of borrowers to read the fine print. But many experts say the problem runs much deeper. The mortgage business has long been a tug of war between a social commitment to broad homeownership and the efforts of private financial operators to earn money.
Robert Kuttner, co-editor of The American Prospect and a senior fellow at Demos, a New York-based think tank, says the government should resume directly subsidizing starter mortgages and construction of homes for moderate-income buyers. He says these programs need to combine careful credit assessment with counseling, rather than relying totally on the private mortgage industry. He says he also would prevent irresponsible, speculative lenders from selling mortgages in the secondary market.
“We've now had an experiment in the claims made for mortgage deregulation, extending over three decades, and deregulation flunked," Kuttner says. "America needs to restore a system in which government supports homeownership — and makes sure that mortgage lenders serve as responsible creditors, not predators.”
Source: The Associated Press, Nathan K. Martin (08/19/07)
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