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Posts Tagged ‘Economy’
Government to Stop Helping With Housing Market Crisis
The government has been trying to put together programs and incentives to help the housing market out of its crisis because of the Great Recession. Many programs like the Federal Reserve buying $1.25 trillion in mortgage securities, home buyer tax credits and other programs are scheduled to end soon.
Many of these programs including the home buyer tax credit have already been extended to April 30, 2010; because it was originally due to expire in November of 2009. Many people are now arguing that the government programs and support have not been helping enough to make them worth the time, money, and effort.
People are saying that despite government programs and help, housing markets are still struggling and sales are still continuing to drop, such as the 7.2 percent drop in home sales in January. The government is still deciding whether or not to change their programs or put more effort and money into existing ones, but many people feel that it would be a better idea for the government to stop helping altogether.
Home values are affected by many factors including but not limited to: the job market, health, the environment, and many more. Also, it is important to pay attention to whether or not the rental property business is doing well. If housing prices are low this may make buying more attractive and vice versa. If people feel that it would benefit them more to rent now and buy later when the economy and housing market are better than that is probably what they will do.
As a real estate agent it is important to know not only how the housing market is doing but rental properties as well. It is also important to keep in mind what motivates people to buy or sell their home. This way they can make the best decisions when working with their clients. It is also important for buyers and sellers to know about the market and current news so that well informed decisions can be made now and in the future.
Demographic Trends that May Affect the Housing Market
When trying to sell any product or service, it is important to know not only who buys the product or service but why they do or do not and to keep an eye out for any changes. This is also true in the housing market. Older couples want different features in a house than a younger couple does and it is important to know why. Here are some demographic trends that may affect the housing market in the future.
Ask a Syracuse real estate agent for advice
It is a real estate agent’s job to know about demographic and other trends that may affect the housing market. If you have any questions, they are an excellent first resource.
Older baby boomers (55-64)
Many older baby boomers are stuck where they live now because they may owe more in payments than their house is worth. Many older people are also choosing retirement places closer to family and friends. They also may choose not to move because they feel a sense of pride for their home.
Younger baby boomers (46-54)
Many of these people are finding it hard to sell their homes to the younger generation. This restricts options and forces many of these people to consider home improvements and building on to their current home instead of buying a new one. Many are also buying smaller second homes than they were before.
Generation Y (late teens-early 30s)
Many of the people in this generation are seeing their loved ones and friends lose homes to foreclosure. They are willing to rent homes or buy smaller ones to afford the lifestyle they desire. They want to be close to friends, family, and services.
Immigrants
Many of these people have moved to central cities and may move to larger suburban homes in the future when prices for these homes are reduced. They tend to like to be close to family and friends.
In the future, when you might be considering buying a new home or selling yours and moving on, it is important to consider these demographic trends. What people want and why they want it may change and it is important to know all the information. This way you can make a well informed decision when you buy or sell a home.
Ask a real estate agent for advice
It is a real estate agent’s job to know about demographic and other trends that may affect the housing market. If you have any questions, they are an excellent first resource.
Older baby boomers (55-64)
Many older baby boomers are stuck where they live now because they may owe more in payments than their house is worth. Many older people are also choosing retirement places closer to family and friends. They also may choose not to move because they feel a sense of pride for their home.
Younger baby boomers (46-54)
Many of these people are finding it hard to sell their homes to the younger generation. This restricts options and forces many of these people to consider home improvements and building on to their current home instead of buying a new one. Many are also buying smaller second homes than they were before.
Generation Y (late teens-early 30s)
Many of the people in this generation are seeing their loved ones and friends lose homes to foreclosure. They are willing to rent homes or buy smaller ones to afford the lifestyle they desire. They want to be close to friends, family, and services.
Immigrants
Many of these people have moved to central cities and may move to larger suburban homes in the future when prices for these homes are reduced. They tend to like to be close to family and friends.
In the future, when you might be considering buying a new home or selling yours and moving on, it is important to consider these demographic trends. What people want and why they want it may change and it is important to know all the information. This way you can make a well informed decision when you buy or sell a home.
New Cities in a Housing Crisis
We all know that the housing market has been suffering across the country for a long time now. We have heard it on the news, on the internet, in the newspaper and we have seen it for ourselves as well. We have heard about the ups and downs and the hope for the New Year. Well, now there are some new cities being hit by the housing crisis that may not have been touched before. Some new places that real estate agents, home buyers, and home sellers need to watch out for include:
Money Cities
Cities that contribute much of their income to financial services are now being hit by the housing market. It has affected Charlotte, NC, which is the headquarters of Bank of America and other financial institutions. Another city feeling the housing market crisis is San Francisco where the housing prices are among the highest in the whole country.
Resort Areas
Travel destinations and resort areas are also feeling the effects of the housing market. This means that expensive second or vacation homes are not doing or expected to do very well. One destination is Napa Valley, CA were housing prices are being to drop now more than before over the last few years. Places such as Denver, Dallas, and Austin are not doing as bad yet, but their housing markets should be carefully watched for sudden changes.
This does not mean the housing market is forever doomed and that real estate agents, home sellers, and buyers should just give up. This just means that is now more important than ever to watch markets as closely as possible and to put in all the effort you can to improve housing markets in your areas and in others as well.
Home Selling Drops and What This May Mean
Many of us know that due to the economy and many other important factors the housing market has been struggling. Even though tax breaks are being looked at and programs are being started, this may not be enough to rescue the struggling market yet. According to an article from U.S. News and World Report, entitled, “Home Sales Tank: What It Means for You”, home sales dropped almost 17 percent in December when compared to November sales. Some of this could be due to home buyers racing to get the tax credit in November and may not be that bad because it only is showing what would have happened had it not been for the tax credit deadline.
What this means for homeowners is that things are looking much better than before. Home values have become more stable since 2009 and there have been mortgage cuts and more tax breaks to make the situation look brighter for many homeowners. For home buyers this could mean that they should get the most leverage in the housing market at least until the spring. There are low prices, tax credits, and mortgage programs working in their favor as well. Home buyers should keep an eye on prices and rates though because they could get higher.
Prices should go back up from December’s low levels but home sellers may still have to work to sell their home. It is best to consult with an experienced real estate agent about your options and what would work best for you and your family. Things were worse last year though, so they might start looking better during the first part of this year. Home sellers should consider pricing their homes accordingly and doing everything they can to help an agent sell their home.
This report and other housing market news can help keep homeowners, buyers, and sellers more informed so that they can make the best decisions possible now and in the future. It is important that every possible buyer and seller know how the housing market is doing.
Things to Know about Real Estate in the New Year
The New Year has just begun and this brings hope and possibilities for many things. Maybe this will be the year of more jobs, economic recovery, ending wars, and maybe even the recovering of the housing market. Maybe this will be the year to buy or sell a house and get that perfect dream home or make that sale you have been waiting for. Here are some things about the real estate market that may help you to know whether to buy or sell that house this year.
The first thing anyone should do in trying to find out about real estate or the housing market in this New Year to consult a real estate agent. It is a real estate agent’s job to know about new housing trends, new things to look for or beware of and more. If you need to know whether to buy or sell that house this year or whether to wait, ask your real estate agent for advice first. They are an excellent resource and get help you get started and help you have a great new year.
Prices are more stable now than they had been and will continue to show improvement this year but first they may face some more declines in some areas before becoming more stable and reasonable for everyone. Also, people being late on their mortgage payments will most likely continue for a good portion of this year because the job market still needs to improve and until it does, many people are struggling to come up with their mortgage payments. There were also mortgage programs in place last year and in other years to give homeowners a good mortgage rate. Many of these programs will expire and this will mean that mortgage rates will once again rise.
Also, due to mortgage rates increasing and the job market not greatly improving yet, foreclosures are predicted to be higher at least in the beginning part of this year and until the job market improves. It will also continue to be a buyer’s market, especially with more foreclosures happening and seller’s willing to accept lower prices just to make a needed sale.
Plans to help the housing market and mortgage rates are also expected to be revised and tax credits may be extended through the summer. Also, depending on where you live will greatly affect how the housing market is.
These tips and information about real estate in the New Year will help you make better informed decisions about whether to buy or sell a home this year. Knowing this information can help you know what places to look in when looking to buy a home. They can also help you know how much to save for a home or whether you should just remodel an existing home. They can also help you stay updating on the housing market and continue to make informed decisions in the future.
Winning the 2009 Real Estate Game
With foreclosures up, sale prices down, and new homes sitting empty, it’s hard to look back on 2009 as a great year in real estate. The market is way below where it should be, and it’s taking a lot of work to build things back up. There’s been more bad news than good.
Not everything in real estate was bad this year, though. With all of the negative press the real estate world has been getting, here’s a little good news to balance things out a bit. Consider this the 2009 Real Estate Winner’s Circle, the people who actually won the real estate game this year.
First time homebuyers were the big winners in 2009. Not only have interest rates been at a ridiculously low level most of the year, prices have also been low. Add to that the first time home buyer tax credit, and you have a formula for a lot of first time buyers making out very well in real estate this year. There were a lot of homes available, and first time buyers alone were able to put a huge dent in the available inventory.
Investors also were in a position to do really well in 2009. Lower prices and lower interest rates made it easy for investors to scoop up a lot of homes. If investors had cash available, they were able to purchase unfinished developments, foreclosed homes and other troubled properties for as much as 25% off the price they would have paid five years ago.
This was a great year to be a renter. There were more apartments available, and fewer interested renters, so those who moved into a new apartment during the last year could have saved a lot on their monthly rent payments. They also avoided the real estate mess, for the most part. Also, with the home buyer incentive expanded and extended into 2010, these renters are in a great position to buy a home in the coming year.
Home owners who have owned their home long enough to build up equity were also doing well this year, despite the drop in home prices. Their homes may have dropped in value, but the mortgages on those homes didn’t go upside down. They were protected. Similarly, owners in areas where home values didn’t drop, such as in many areas of the central US, weren’t affected by the recession the same way those whose homes dropped several thousand dollars in value were.
The turmoil in real estate during the year has taught us some hard lessons. We need to think carefully about our finances before buying a home, and we need to make sure we have a substantial savings set aside for a rainy day, to cover housing and other expenses in the case of a job loss or other financial emergency. Banks have been forced to change their policies, and consumers are much more aware of how the real estate market works.
The current state of the real estate market may be bleak, but there have been some good things to come out of it. As we head into 2010, it will be interesting to watch as the housing market continues to pull itself out of the hole and come back stronger than ever.
Ways to Figure out if your Housing Market is Improving
Many areas and cities are seeing slight and even bigger improvements in their housing markets. This has made many possible buyers and sellers wonder if their own housing market has improved at all. Many people are wondering if they should buy a home now or wait and many sellers are wondering if they should try to sell again later. Well, to help answer some of these questions, here are some ways to tell if the housing market is improving in your area. That way you and your family can make the best decision possible and rest easier.
Contact your Syracuse real estate agent
Your local real estate agent is checking market conditions as well. They will be able to offer you the latest statistics and information. They may even be able to offer you advice on when it is best to buy or sell a home in your area.
Look up listings and how much they are selling for
It may be a good idea to do some of your own research and see how many listings there are and what they are selling for. It may also be wise to see if any of the homes have lowered their prices or taken the homes off the market completely. This will let you know how the market is doing.
Read about government programs
It may also be a good idea to keep reading any new or improved government programs that are being developed to help the housing market. This will help let you know what is being done and when improvements can be expected.
Watch employment rates
If unemployment is still pretty high in your area, chances are the housing market is not improving that much. Without a steady income people just do not have the money to put towards a home.
Talk to neighbors
A good source of information may be to talk to neighbors, friends, and family. This way you can find out how many homes are on the market and how long they have been on the market without selling. This will let you know how your local housing market is or is not improving.
These basic tips and ways to figure out if your local housing market is improving will help ease your mind and let you make the best decisions possible. If your housing market is not so good, maybe you can just improve your home. If you are a seller, maybe take your home off the market and relist it at a later time. This way you can stay informed and not waste time and money in the long run.
Is Paying off Your Mortgage A Good Idea?
The recent recession has taught most Americans one thing: there is no such thing as a sure thing when it comes to financial security.
This has also opened up a new awareness of credit and debt. To avoid falling behind in the case of a job loss, it pays to not have any major payments to make every month. The less you have to pay to others, the more of a cushion you have in case things go wrong. But should that mean rushing to pay off your home?
Probably not.
It’s really a numbers game. If you have an extra $200 dollars a month to put towards debt, you should be concentrating on the debt with the highest interest rate. If you have a credit card charging you 15%, and a mortgage charging you 8%, pay off the credit card first. Work your way down to the lower interest rates when trying to pay off debt.
Don’t assume that you should tackle the big ticket purchases (your home) first. Once the items with the highest interest rates are taken care of, go for the smallest balances. These bills are usually the quickest to pay off, and getting them taken care of can provide a sense of accomplishment. They can also keep you motivated on paying off futher debts.
After that has been taken care of, start putting together a savings account, if you don’t already have one. Having a cushion to cover you in case of a sudden reduction in income, due to illness or job loss, will do more good than being ahead on your mortgage. Ideally, you want to aim for 3 months worth of expenses, at the very least.
Instead of paying off your mortgage at this time, start putting money into investments. Stocks and bonds give you more for your money than paying off your mortgage would. If you can put $200 a month into an investment opportunity that gives out 8% interest, your money is working harder for you than if you were to pay off a mortgage with 7% interest. You should also be putting money into an IRA for retirement.
That being said, there is a pleasantly secure feeling knowing that you own your home outright, and even if a financial crisis happens down the road, there is no way to lose your home. If your going to pay off your loan, remember to check first for prepayment penalties, which can equal around $6,000 depending on your loan.
Good Housing News Predicted
All the leading indicators say housing is definitely on the mend, economists reported in advance of the official release of several pieces of good news expected this week.
Bloomberg News surveyed 53 economists and asked them where they expected the numbers to fall. Here are their predictions:
- Construction starts in September are expected to hit a 610,000 annual rate, the most since last November.
- Sales of existing homes likely rose to a two-year high.
- Because of fear of a relapse, the Federal Reserve is predicted to leave interest rates low for a few more months.
- Building permits, a sign of future growth, probably rose to a 590,000 annual pace, also the highest level since November, the Commerce Department is likely to announce.
- The National Association of Home Builders/Wells Fargo index is expected to rise to 20 from 19, the economists say.
Google Inc. plans to resume hiring and acquisitions after its third-quarter sales beat analysts’ estimates. CFO Patrick Pichette says: “We weathered what is an incredible recession. If you have all this behind you, the only outcome you should have as management is: ‘OK, let’s build now.’”
Source: Bloomberg, Courtney Schlisserman (10/18/2009)