The beauty of these crazy low prices is crazy low monthly payments for homeowners that are taking advantage of this nationwide real estate sale. However, the other side of the coin holds a different story for renters and landlords.
When rents are high, investment properties are very profitable, easy income -if you have a management company doing all the heavy lifting of course. However, when rents go down, renters rejoice but your profit margin frowns. Now, with home prices being so low, moderate income buyers can purchase a home for equal or less monthly cost than renting someone else's home. A home they can't paint, remodel, or improve.
Even so, this speaks again to the profitability of buying investment properties only because the overhead is low as well. Then in 5+ years when you go to sell it, you've just made quite a lovely profit.
Check out this link for a Wall Street Journal article that covers the whole issue:
http://online.wsj.com/article_email/SB123552129423664663-lMyQjAxMDI5MzI1NTUyMjUxWj.html
Wednesday, February 25, 2009
Thursday, February 19, 2009
Q&A on the New Housing Plan
http://www.nytimes.com/2009/02/19/your-money/mortgages/19modify.html?_r=1&emc=eta1
Above is a link to a New York Times article that addresses the frequently asked questions regarding the new mortgage incentives as a part of the Obama Housing Plan.
Check this out for detailed information and to see if it can help you, or someone you know.
Give us a call if you have any other questions 775-828-3292.
Above is a link to a New York Times article that addresses the frequently asked questions regarding the new mortgage incentives as a part of the Obama Housing Plan.
Check this out for detailed information and to see if it can help you, or someone you know.
Give us a call if you have any other questions 775-828-3292.
Monday, January 12, 2009
We Need To Go On A Diet
I just heard David give the best analogy to describe our market:
"Imagine I gained 200 pounds, can you picture how big my pants would have to be? Now imagine I lost all that weight really fast, but I still had to wear the same pants. I'd be little but my pants would be huge, THEY WOULDN'T FIT!
That's what our market is like; a thin pool of motivated buyers swimming around in an ocean of homes. We have to tailor down our oversized inventory to fit our thin buyer pool."
Ok folks, 2008 was a doozey and unless we want to prolong the pain past 2009, we need sellers to get realistic about fair market value and we need buyers to come to the table with serious, well-written offers.
We still have some muck to wade through (read: short sales and foreclosures), but all signs point to increased units sold in the latter half of 2009, which will help increase competition by tailoring down our inventory.
If the vibes and changes that come down from capitol hill boost consumer confidence, all sales fields will feel the love.
For anyone out there thinking about putting an offer in on a short sale:
I've noticed banks drawing a line when it comes to how low they will go and the "10% rule" doesn't cut it anymore. Unless you are right on, or darn close to, asking price (assuming it's a well-priced home), expect to see a counter from the bank at or above asking price. If they keep this up and more buyers agree to these terms, you will see a price floor form fast.
"Imagine I gained 200 pounds, can you picture how big my pants would have to be? Now imagine I lost all that weight really fast, but I still had to wear the same pants. I'd be little but my pants would be huge, THEY WOULDN'T FIT!
That's what our market is like; a thin pool of motivated buyers swimming around in an ocean of homes. We have to tailor down our oversized inventory to fit our thin buyer pool."
Ok folks, 2008 was a doozey and unless we want to prolong the pain past 2009, we need sellers to get realistic about fair market value and we need buyers to come to the table with serious, well-written offers.
We still have some muck to wade through (read: short sales and foreclosures), but all signs point to increased units sold in the latter half of 2009, which will help increase competition by tailoring down our inventory.
If the vibes and changes that come down from capitol hill boost consumer confidence, all sales fields will feel the love.
For anyone out there thinking about putting an offer in on a short sale:
I've noticed banks drawing a line when it comes to how low they will go and the "10% rule" doesn't cut it anymore. Unless you are right on, or darn close to, asking price (assuming it's a well-priced home), expect to see a counter from the bank at or above asking price. If they keep this up and more buyers agree to these terms, you will see a price floor form fast.
Sunday, January 4, 2009
Happy New Year!
We hope everyone had a wonderful holiday season and we wish you the best for 2009.
Stay tuned for a look back on 2008 and what to expect over this next year.
Stay tuned for a look back on 2008 and what to expect over this next year.
Friday, November 7, 2008
November 2008-sans stats
I have one thing to say, BUY, BUY, BUY. If ever there was a time to get off of the fence it is now. I encourage all of you to BUY, and your friends to buy. As of today we are below 2004 values, year-to-date, with the exception of area 171 (southwest suburban) and that area is trending down as well.
The foreclosed market is finite, one TRILLION dollars is going to make a difference in this market and now is the time to buy. Over this weekend JP Morgan (read Washington Mutual) has acknowledged that the company needs to re think the foreclosure process and even go beyond to look at homeowners that are in good standing today but may become distressed sellers tomorrow. Other lenders are beginning to show signs of similar thinking.
Are the prices going to descend lower? Here is food for thought:
Double Diamond/Damonte Ranch, one of the hot beds for distressed sales, data is for homes under $300,000 sold in 2008 by quarters:
1st quarter sales: 21 homes sold for an average of $267,258
2nd quarter sales: 37 homes sold for an average of $263,010
3rd quarter sales: 47 homes sold for an average of $262,347
That is a change in values of only 2% over 10 months. The average home in escrow today is $265,627. I have to ask you is this the picture of a bottomless market?
With a trillion dollars and banks possibly rethinking how they foreclose, we are in a great position to see inventory drop and choices dry up. I am not suggesting a price bounce of any measure now, or any time soon. What I do see is that the deals of today will disappear much sooner than buyers realize.
Where are the good buys? Just about anywhere you look and for whatever your budget is. I do not see any price recovery for homes valued after late 2003 through mid-2007 for several years or more. The real road to recovery will be for the sellers that sell today and buy back into these much reduced values and ride the recovery from the bottom up. Holding on is going to be expensive for those that really want to sell and are trying to “hold out” for the market to “go up.”
Oh, one last thought, I have purposely written this on November the 3rd. Whatever happens tomorrow, regardless of your feelings, a major milestone will be behind us and we will all have the same opportunity to move forward for the better and look up. I for one plan on moving forward and I expect to find willing and capable buyers for every one of my clients and for my buyers, to find them a home that they can be proud of for many years to come.
The foreclosed market is finite, one TRILLION dollars is going to make a difference in this market and now is the time to buy. Over this weekend JP Morgan (read Washington Mutual) has acknowledged that the company needs to re think the foreclosure process and even go beyond to look at homeowners that are in good standing today but may become distressed sellers tomorrow. Other lenders are beginning to show signs of similar thinking.
Are the prices going to descend lower? Here is food for thought:
Double Diamond/Damonte Ranch, one of the hot beds for distressed sales, data is for homes under $300,000 sold in 2008 by quarters:
1st quarter sales: 21 homes sold for an average of $267,258
2nd quarter sales: 37 homes sold for an average of $263,010
3rd quarter sales: 47 homes sold for an average of $262,347
That is a change in values of only 2% over 10 months. The average home in escrow today is $265,627. I have to ask you is this the picture of a bottomless market?
With a trillion dollars and banks possibly rethinking how they foreclose, we are in a great position to see inventory drop and choices dry up. I am not suggesting a price bounce of any measure now, or any time soon. What I do see is that the deals of today will disappear much sooner than buyers realize.
Where are the good buys? Just about anywhere you look and for whatever your budget is. I do not see any price recovery for homes valued after late 2003 through mid-2007 for several years or more. The real road to recovery will be for the sellers that sell today and buy back into these much reduced values and ride the recovery from the bottom up. Holding on is going to be expensive for those that really want to sell and are trying to “hold out” for the market to “go up.”
Oh, one last thought, I have purposely written this on November the 3rd. Whatever happens tomorrow, regardless of your feelings, a major milestone will be behind us and we will all have the same opportunity to move forward for the better and look up. I for one plan on moving forward and I expect to find willing and capable buyers for every one of my clients and for my buyers, to find them a home that they can be proud of for many years to come.
Monday, November 3, 2008
Apple Hill Excursion
The Morris family took a trip up to Apple Hill on Nevada Day and it was a fantastic way to spend the holiday. The drive up was gorgeous and all the orchards were brimming with shiny, fresh apples and apple products galore. Who knew so many different kinds of apples existed and were readily available so close to home?
After it was all said and done, we hit about half a dozen orchards and went home leaden with Winesape, Pink Lady, Arkansas Black, Granny Smith and even a few Red and Golden Delicious, not to mention all the apple butter and jam!
No trip to Apple Hill is complete without tasting some fresh, homemade apple pie. Kids Inc. had amazing French apple pie with vanilla icecream and cinnamon-caramel sauce. Since it was a state holiday in Nevada, the vast majority of cars in every parking lot had Nevada plates and the orchards offered discounts and fun freebies to Nevada residents, which was pretty special.
Apple Hill (near Placerville) is a fun and nostalgic way to kick off the fall/winter season. The apples are still great, so be sure to scoot over the hill soon and pick up a stash. Shauna has put her takings to good use and made an apple pie with Gruyere backed into the crust, as well as apple tarts, which were a great way to use up the "scraps" from the pie. She'd be happy to share the recipe as well.
Happy apple picking!
After it was all said and done, we hit about half a dozen orchards and went home leaden with Winesape, Pink Lady, Arkansas Black, Granny Smith and even a few Red and Golden Delicious, not to mention all the apple butter and jam!
No trip to Apple Hill is complete without tasting some fresh, homemade apple pie. Kids Inc. had amazing French apple pie with vanilla icecream and cinnamon-caramel sauce. Since it was a state holiday in Nevada, the vast majority of cars in every parking lot had Nevada plates and the orchards offered discounts and fun freebies to Nevada residents, which was pretty special.
Apple Hill (near Placerville) is a fun and nostalgic way to kick off the fall/winter season. The apples are still great, so be sure to scoot over the hill soon and pick up a stash. Shauna has put her takings to good use and made an apple pie with Gruyere backed into the crust, as well as apple tarts, which were a great way to use up the "scraps" from the pie. She'd be happy to share the recipe as well.
Happy apple picking!
Wednesday, October 22, 2008
AOPA Article about Alamos Airlift
Here is a link to the article AOPA did on their website about the relief effort supported by the Baja Bush Pilots:
http://www.aopa.org/aircraft/articles/2008/081021alamos.html
The article gives an overall description of the effort and the hurricane.
http://www.aopa.org/aircraft/articles/2008/081021alamos.html
The article gives an overall description of the effort and the hurricane.
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