Published by Allan 1 year, 2 months ago
in Uncategorized.
We all know that markets rise and fall. Be they real estate, financial, or what have you, cyclical fluctuations are par for the course. Successful individuals and businesses ride these waves to their maximum benefit.
People watching the real estate and lending markets right now are playing the “when to enter” (or exit as it may be) game these days. An article was published in the washington post today regarding the state of many of the nations top lenders. Bear stearns, Countrywide, Citigroup, and Capital One are all sucking gas, some to the tune of almost 25% over the last 3 months.
These fluctuations are a typical “half full/half empty” scenario. With companies at their lowest levels since the 9/11 attacks at the WTC savvy investors may see some real potential. Where’s the wave at? Are we near the bottom? Are you ready to jump in yet? What does your crystal ball say?
Published by Allan 1 year, 2 months ago
in Uncategorized.
We’ve tracked the progress of Zillow.com in previous stories, and they’re up to it again. They’ve recently pulled together a group of technology minded real estate professionals and launched a blog dealing mainly with technology and its role in the real estate world. They haven’t put too much meat up for consumption yet but we’ll be watching them to see what they have to contribute.
In an ever changing real estate market, technology plays an important role in productivity and success. Those who embrace this reality will be they who raise the bar and drive us to Real Estate 2.0
Check out GeekEstateBLog.com
Published by Allan 1 year, 2 months ago
in Uncategorized, Mortgage and Finance.
The title of the article in MSN Money by Robert Walberg states, “No crisis for mortgage lenders.” He goes on to explain, in short, the following:
The U.S. mortgage market totals about $10 trillion, of which we may face losses of around $50 billion to $100 billion, according to Federal Reserve Chief Ben Bernanke. Those are big losses, but they represent no more than 1% of the overall total — hardly the definition of a crisis.
I agree with Walberg on this one. It’s easy to get caught up in things by only looking at one piece of a very complex puzzle, then think you know it all and start making important decisions. When you say, “Losses are expected to be $50 - $100 billion,” I say, “Wow! The sky is falling. When you say, “They’re going to experience a 1% loss.” I say, “Big deal. Retailers lose 10 - 15 times that much to shop lifters alone.”
It’s kind of like the perceived value of money. You wave a $100 bill in front of a 10 year old, it represents all the money in the world. You wave it in front of the executive that makes a seven-figure salary, it means nothing. It all comes down to how many zeros you’re accustomed to dealing with. This story is one you should read. It gives a very balanced feel for how things really are. Click here for the full story.
Published by Allan 1 year, 3 months ago
in Uncategorized.
Marketwatch is reporting that rates for 30 year fixed mortgages have hit their highest point in 10 months. And it’s not just 30 year rates. ARM’s are up, 15 year rates are up and things are generally getting tighter on fears of tightening of the labor force and an increase in wages.
What does this mean for the housing market? According to Frank Nothaft of Freddie Mac, “As house prices grow less quickly and household incomes rise, the housing market will likely recover from its current slump, but perhaps not before the end of this year.” We’ll see.
To read the whole story, click here.
Published by Allan 1 year, 3 months ago
in Uncategorized.
Two interesting stories came out of USA Today today. One outlines how realtors are working harder and making less than they were just a few years (or months) ago. Another talks about how investors, once swimming in profits, have had to watch as those invested in stocks celebrate record after record. Of course RE is local, not national, and this may not be a representation of how things are where you are. But many of your fellows are fighting the battle. These are two pretty good stories, either to commiserate with those who are struggling, or to help to feel grateful that you’re not in their boat. Click below to read the two stories:
Realtor woes
Investor woes
