Declining Markets and all

By
Real Estate Agent with RLAH / @properties DC / MD / VA

Supreme ApartmentI've not posted for a week, but I've been searching like a maniac through my notes for a post I'd made. Either the heavens are in retrograde, or my mind is in a fog. The former removes control from us mere mortals, the latter removes sanity from my grasp. Anyhow, I'll simply re-write my thoughts. There is a wonderful tool to allow uses verification of the status of their zip code as being in a declining market. [by the way, the entire DC Metro area is defined as declining. Not so good since as of Spring 2008, DC itself continues to post year over year appreciation gains, albeit single digit. I guess I'm quibbling about mere data & money] No buyer wants to buy in a declining market. For that reason, no seller wants to be in a declining market. One function of the tool is that it does clearly define the "market" is local, so that during a given time, Utah could be moving up, while suburban Virginia is declining. Often, people will think of "the market" as being a national entity, which it is not. One larger reason why everyone has been very concerned is because lenders have been mandating a 5% increase in down payments for homes in a declining market. And this surely makes buyers less able to buy, sellers less able to sell. This idea is much more eloquently stated by Kenneth Harney who is a must read for people anyway. The only reason I'm continuing to write about this and was trying to reference an earlier post was because of a change in the policy. [ I gotta figure out how to insert an ooom-pa-pa band audio right here]. This policy change, to take effect on June 1, 2008, by Fannie Mae, was in response to efforts by the NAR (National Assoc. of Realtors). Self-serving to Realtors; sure that can be. But I also think it is part of the changes being engineered by government & business to ensure a graceful cooling. I gotta think, many people were relieved in the past few days.

Posted by

Claude Labbe, Realty for Your Busy Life

Real Living | At Home
11 Dupont Circle #650
Washington, DC 20036
(202) 518-8781 bus / (703) 868-7774 mobile
claude@labbe.com

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Comments (5)

Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

Hi Claude,

I love your creative writing style. However, I would like to see more info on how this tool to verify zip codes works, maybe a web link to look over? Thanks and have a great day! Michael A. Caruso

May 22, 2008 08:21 AM
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

I think the declining market financing no longer applies.

May 22, 2008 08:23 AM
Michael S. Mackey
CENTURY 21 All Islands - Mililani, HI
REALTOR ABR, CRS, GRI, RSPS

Thanks for the info. I second the request by Michael Caruso; where can I find this zip code tool? One FHA fact I recently became aware of is an additional 5% downpayment, and possible rate hike, to purchase properties that have been on the market six months or longer. Can anyone verify that?

May 22, 2008 08:36 AM
Kim Sellers
Lake Arrowhead, CA Coldwell Banker - Lake Arrowhead, CA
Lake Arrowhead Realtor - BRE#01412099 - Lake Arrow

We all see the declining market place, but this is irratating.  Real estate is localized.

May 22, 2008 08:47 AM
Anonymous
Claude Labbe

Michael: my errror. I didn't include the links.

http://decliningmarkets.gmacrescap.com/

http://www.washingtonpost.com/wp-dyn/content/article/2008/04/25/AR2008042501818.html

 

Kim: that's precisely the point.  April 2007 to April 2008, the District of Columbia had a 4.2% appreciation rate, and yet, the city is tagged as "declining".  Real estate is very local, and what applies to one metro area doesn't really apply to another.

 

Chuck: Agreed, I believe as of June 1, the rules change.

May 22, 2008 09:12 AM
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