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At home May 08

By
Real Estate Agent with Nebraska Realty - NE RE# 20030540

First I would like to thank everyone for taking a minute to read my newsletter.  I am sure you've read or seen a story in the news about the real estate market.  Yes, the real estate market is not the best right now.  But buyers are still buying and sellers are still selling.  May, June and July are typically some of the most active months and my business is certainly a reflection of that.  For more, check out my blog for statistics for both Douglas and Sarpy counties.

$4 gas is upon us.  As I wrote in February, "it will be interesting to see the affect of $4 gas will have on the housing market."  Well it's here and I have seen a slight reduction in home showings over the past couple of weeks.  Speculation now is for $5 gas in July.  I am sure glad I traded in my gas guzzling Expedition last month! 

Speculation is defined as "Financial speculation, involves the buying, holding, selling, and short-selling of stocks, bonds, commodities, currencies, collectibles, real estate, derivatives, or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via methods such as dividends or interest."

I feel oil speculators are causing the price of oil to be artificially inflated.  Speculators of oil futures drive up demand for oil, but have no intention of actually buying the oil.  You see the speculators turn around and sell the oil futures back at a higher price for a profit.  Trading commodities like oil, gas, or corn is risky business, but when the market is running like a bull, investors make a lot of money.  It will be interesting to see how the oil markets react over the next few months.  I sure hope gas prices come down. 

Looking back at other speculation markets, there was the stock market bubble in 2000 and the recent real estate bubble.  Back in 2000 and 2001 when the stock market was declining, people were pulling money out of stocks and investing into real estate.  In certain areas around the country, demand for condos, second homes, and investment properties was booming.  People could by an investment or second home with no money down on an adjustable rate mortgage.  Why not speculate and buy a home in Phoenix, Florida, or Las Vegas?  Demand for housing was causing double digit appreciation.  What's the risk?  They didn't have to put any money down and they were told after two or three years, they would refinance it or sell it for a profit.  Well now that the real estate market is down, they are in trouble. Unable to sell property for what they paid just a few short years ago and unable to refinance for less.  Some of the larger cities are hit harder than Omaha, but we are still seeing an increase in foreclosures.

It will be interesting to see what the next bull market will be in the coming months or years. Will it be alternative energy, technology, or real estate?

New feature!  I am continually modifying and adding new features to my website.  Recently, I added video tours of my listings on Realtor.com and personal domain names to market my listings. Check out www.908PortRoyalDrive.info, www.WestmontHome.info or www.LookingGlassHome.net.

Statistics show everyone knows of 3 - 6 people who will buy or sell a home each year.  I would really appreciate your referral if you know anyone that will be buying or selling a home in the future.  Please forward them my contact information, my website link, or this newsletter. 

Finally, check out my Blog called www.OmahaRealtyBlog.com for recent posts and statistics on the Omaha real estate market.

Trivia Challenge Question:

Thanks to everyone that submitted guesses last month and congratulations to Greg G. for submitting the correct answer. He emailed the correct answer "The Cowboys" with John Wayne.

 Name that movie? 

Recently, I was talking with a fellow agent and I threw out this great movie quote. "Lighten up Francis!"   He looked at me with a blank stare.  He had never seen this classic movie. What's the name of the movie? 

 Thanks again for taking a few minutes out of your day to read my real estate newsletter.  I appreciate it and welcome any suggestions!

 Steve

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