financial crisis: The WRONG Top ten List to be on... - 01/20/11 10:02 AM
Image via Wikipedia Yahoo News recently published an article titled "The Eight States Running Out of Homebuyers".  (I know, I said 10... they say 8, but they mentioned that Colorado and South Carolina barely missed inclusion).
Georgia ranked #6...
I'll cut to the chase and give you the list.  Check out the article for the details on each state...
Michigan Nevada Arizona California Illinois Georgia Oregon Florida Image via Wikipedia Georgia made it onto the list because of the following statistics...
2010 Foreclosures: 3.25% (6th Worst) Unemployment: 10% (9th Worst) Decrease in Building Permits 2006-2010: -82.29% (2nd Worst) Of course, I … (45 comments)

financial crisis: Lane's Prognostications for 2011... - 01/10/11 12:57 PM
Image by thinkpanama via Flickr We'll see how well I peg this.
Lane's Predictions for 2011... Looking back over the last year or two in real estate market reports, there are a few things that have been jumping out at me.
For over two years I have been hearing about the millions of homes in "Shadow Inventory".  These are properties in the foreclosure process, or already foreclosed, that the banks are basically sitting on, waiting until "the market improves" before releasing them into the market.  I predict that next year there will STILL be people talking about the coming giant wave … (2 comments)

financial crisis: Wayback Wednesday... Fear/Greed and "the Deal" - 12/22/10 02:31 PM
Image via Wikipedia Two years ago, we were in the midst of the financial system meltdown.  real estate was looking bleak... and so was everything else.  Unemployment hadn't really reared its ugly head.  It was swirling up, but still seemed manageable.
So, I thought that a blog about market psychology was in order...  And this isn't just real estate.  The same holds true for any kind of market.
Fear and Greed Those are the emotions that drive ALL markets.  Stop into the old post and take a look at the background.
In a nutshell, when fear overruns greed, markets expand.  When … (3 comments)

financial crisis: Wayback Wednesday... Is NOW the Time to Buy? - 12/08/10 01:13 PM
Image by dannyfowler via Flickr Listening to the NAR (National Association of Realtors®, it is ALWAYS the right time to buy.  If the market is going up, they pound the "buy the rising market" drum.  If the market is going down, they beat on the "buy into value" drum.  Frankly, I'm tired of it, and they have killed a massive amount of credibility by constantly trying to spin reality for "our" perceived benefit.
A couple of years ago this week, I was on Social Media Edge, on Blog Talk Radio, talking with Ken Cook about this very thing.  I've had my … (0 comments)

financial crisis: Wayback Wednesday... Homes ARE Selling! - 12/01/10 01:22 PM
Image via Wikipedia A couple of years ago I wrote about a deal on a property I ran across.  It was priced around $330,000.  At the time I said that it would have around $75,000 equity.  It sold for $300,000.  The most recent comps in the neighborhood have sold around $400,000 in the last couple of months.  Also of note, it was only on the market for about two weeks.
Since then, I have posted a couple of other times about properties that looked like good deals.  None of them were on the market for more than a couple of weeks... … (7 comments)

financial crisis: Flashback Friday... Angry Yanks... - 11/19/10 04:12 PM
Image via Wikipedia Last year I was waist deep in dealing with buyers involved in REO properties (bank owned).  Oddly, I have been waist deep in the same process lately.
As mentioned in the older post, some buyers have to go through 6, 8 or 10 (or more) offers in order to land some of these properties.  And when the listing agent, or the seller, requires a pre-qualification from THEIR specific lender in order to offer on the property, that can add up to a lot of credit pulls for the potential buyer... possibly even enough to damage their credit.
The … (8 comments)

financial crisis: Wayback Wednesday... Political Incorrectness - 11/19/10 04:08 PM
Image via Wikipedia There is a video clip that has been EVERYWHERE on the internet.  It has been re-subtitled more times than I can count.  Almost any subject that is causing anyone frustration, from the collapse of the housing bubble to the Democrat meltdown to the way some people drive in traffic...  They've all had a version of this video.
And while it isn't politically correct, it is funny.  And I don't care about being politically correct.  I prefer funny.  And Bill Mahr is politically correct... and NOT generally funny.
Pop back a couple of years and see what the fuss … (7 comments)

financial crisis: Flashback Friday... Tax Credit Gambling - 11/12/10 12:49 PM
Image via Wikipedia This week last year, the biggest news in housing was all about the Tax Credit expansion and extension.  It went from just being for First Time Home Buyers to allowing existing home owners to get a credit also.
Those credits finally expired in April (with closing mostly by June).
Looking back on the market reports for the last year, the effect of the tax credits is pretty obvious.  And I wouldn't call it all a good thing.  There certainly was an increase in closed sales leading up to the original June deadline.  But, there was a VERY sharp … (2 comments)

financial crisis: Another RE Scam to beware of... - 10/30/10 03:22 PM
 
Gene is well connected and has a pulse on the market in California... and many times, the "ideas" we see popping up out there start sliding this way.  I would bet that we will see someone try this on this side of the country before too long. 
Don't fall for it.
 
Last week our local paper bestowed their 'Raspberry' award to a SoCal based attorney by the name of Michael T. Pines. Pines qualified for this award by virtue of the fact that his business model apparently involves advising clients who have been through foreclosure and been evicted from … (0 comments)

financial crisis: Wayback Wednesday... A DNS - 10/20/10 10:23 AM
Image via Wikipedia In racing, a DNS means that a car Did Not Start.  One could say that it is even worse than the dreaded DNF (Did Not Finish).  Not making it to the Starting Line is definitely worse than not making it to the Finish Line.
But for Housing Starts, it is a good thing...  at least it is here and now.
Two years ago I wrote a post about how Housing Starts had fallen to their lowest level in 17 years.  Now, we are close to the lowest recorded levels.
But there is still too much inventory.  I know, … (1 comments)

financial crisis: Don't Bury Your Head in the Sand... - 05/21/10 05:30 PM
A couple of years ago I wrote about folks facing foreclosure.  I would love to say that things have really changed in the last couple of years, but I can’t…  They have actually gotten worse in many regards.  But we might be seeing the light at the end of the tunnel… but it is just a pinprick of light…recent numbers are showing that the tide of foreclosures might be easing… if only slightly… from record levels.
Image by lane.bailey via Flickr But I am still seeing something that really bothers me.  People that are in the sights, facing foreclosure, close themselves … (1 comments)

financial crisis: Hyper Inflationary Real Estate Deals? - 05/10/10 03:58 PM
While wandering through the blogosphere, I happened across a couple of post about inflation and the possibility of the US spiralling into a hyper-inflationary mode because of the massive debt, stagnant national economy and continued world economic issues. 
The theories have been around for a couple of years, and many of them point back to Germany (1923), Hungary (1946) or Argentina (1975-1991) as examples... and there are plenty of others. 
I am not one that wanders around expecting worst case outcomes for the United States.  There have been dire predictions before.  In fact, I think every few years we get a … (12 comments)

financial crisis: Successfully Dealing with an Economic Depression... - 02/11/10 07:11 AM
While the Depression of 1929 is often referred to as "The Great Depression", it didn't start out as catastrophic as it became.  Just 10 years prior, the US had a depression that began MUCH more severely.  However, the reaction to the 1920 Depression was VERY different that the reaction to the 1929 Depression.  Many Economists think that those reactions in 1920 allowed the economy to get back on track more quickly.  While, the reactions after 1929 prolonged and deepened that depression. Let's look at 1920 for a moment.
From 1920 to 1921, prices deflated between 13% and 18% (depending on the … (31 comments)

financial crisis: Depression? Let's Talk About Economic Meltdown... - 02/11/10 12:57 AM
For the last year and a half, from Democrats and Republicans, we've heard over and over that the economic downturn we have been facing was the worst since the Great Depression.  As a response, President Bush built a $700B Bank Recovery plan (TARP), in which his administration spent $350B in phase 1.  President Obama spent the other $350B in phase 2.  In addition to that, President Obama built a $989B Recovery plan.  He has also ratcheted up Federal Government spending to an amazing degree. 
President Bush's last budget was slated to have a $450B deficit.  Because of the TARP plan and … (13 comments)

financial crisis: Is there a stock market bubble coming? - 02/04/10 12:22 AM
I have been wondering about this for the last couple of weeks...  There are a few things about that give me pause.  We've seen the Dow climb a bit, but I don't think there haven't really been increased profits to explain it.  And where there have been increased profits has been largely from overseas operations. 
Sure, there are some companies that are bucking that trend... but I still wonder. 
A good bit of the increase in overseas profit comes down to exchange rates.  the US Dollar has been pounded in currency markets.  This means that companies with overseas profits will see … (8 comments)

financial crisis: Wayback Wednesday... Is It Time To Sell? - 02/03/10 12:46 AM
Two years ago I wrote about whether it was time to sell here in Gwinnett County...  Wow have things changed in the last two years.
Image by spratmackrel via Flickr The basic logic is the same now, but looking in the rearview mirror, it sure is tough to justify back then.  Of course, back then I didn't know what the last two years would look like.  My crystal ball was a little dirty.
To start with, where I was talking about $2000/mo rent for a $200,000 home, now the home is likely worth $170,000 and the rent would be unlikely to … (3 comments)

financial crisis: FHA Changes On The Way... - 01/27/10 12:13 PM
Ken Cook, from America Home Key Mortgage, is an FHA expert and extremely knowledgeable about the Mortgage Industry in general.  And of course he is on top of the recent and pending changes HUD announced for the FHA. 
The Federal Housing Administration, the division of the Department of Housing and Urban Development which insures home mortgages for qualified borrowers, has recently announced pending changes which will affect all borrowers and specific borrowers.
Reports show FHA defaults and foreclosures to be at 18% of the total number of loans where the average number of defaults and foreclosures on other loans is … (0 comments)

financial crisis: Condensed Market Reports for Gwinnett County GA (effects of the FTHBTC) - 01/17/10 02:39 PM
I have been sitting here all evening working on Market Reports for Gwinnett County, GA.  They won't be published for a little over a week, but there is a trend I wanted to highlight prior to the release of the reports... 
December is NOT a banner months in Gwinnett County...
November rocked.  There is no getting around it.  Comparing November 2009 to November 2008, sales are showing up around 73%.  November 2008 was rather weak, while December 2008 was strong by comparison. 
December 2009 was actually down over 20% year over year.  As mentioned, December 2008 was a sales blip, but … (2 comments)

financial crisis: Would this solve the 'Foreclosure Crisis'? - 01/10/10 03:10 PM
It is a simple option... isn't onerous, and doesn't involve the government spending billions of our dollars...
Simply make banks responsible
As it stands, in many jurisdictions, banks aren't responsible for maintenance, taxes, HOA fees or any other impacts their foreclosed properties might have on the community.  So, if a block is foreclosed, the homes go to crap while the banks dither at dealing with the inventory.  The cities lose valuable tax revenue while they are already struggling because of diving property values.  HOAs lose chunks of their budgets trying to maintain properties in their neighborhoods... while not collecting fees from … (22 comments)

financial crisis: WayBack... It CAN Hurt... - 12/25/09 01:27 PM
Image by Getty Images via Daylife Two years ago we were staring at the beginnings of a financial crisis.  Credit was clogged up, home values were sliding and the government was mulling over ways that they could intervene.  They wanted to save everyone…
I had opinions then, and I have opinions now.
Oddly, we are still facing many of the same issues, and we are still looking to the future when there are supposed to be even more foreclosures and ill effects.
Take a look back and see what the way forward looked like then…
(5 comments)

 
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Lane Bailey

Realtor & Car Guy

Suwanee, GA

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