House Expert Shiller Says Austerity Bad for Real Estate

Like austerity normal is it’s the reality check. And reality checks hurt sometimes like a bee sting and sometimes like a sledge hammer to the side of the face.

The broad Case-Shiller housing index fell 4.5%.

Expert Shiller sees austerity being a big drag on housing movement and prices.

Propping up prices and keeping bad debts will continue to strain housing like an old man stretching to reach that can of beans on the top shelf.

There’s no reason to keep this bad stuff around. We must take our medicine and let things recover naturally because this is the only thing proven to get results and have lasting recovery of health in any market including real estate.

http://www.creditwritedowns.com/2011/07/shiller-austerity-negative-for-housing.html

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    Time to Buy That Vacation Home?

    The luxury segment of the market is showing signs of life. Movement is happening.

    The affordability index has filtered into almost all areas of the real estate market.

    This means buyers who were previously out of range are now seeing those dreams squarely in the crosshairs.

    See more here:

    http://finance.yahoo.com/news/Vacation-Homes-Why-It-May-Be-wallstreet-2478184932.html?x=0

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      Bill Gross, Biggest Bond Fund Guy, Wants More Government

      Bill Gross is the manager of the largest bond fund in the world. So he has pull in the financial world and in government circles.

      He believes we’re too far gone in the mortgage market and the government is the only help.

      He has no faith the private market can get back into it at any effective level.

      This distorts prices higher and keeps bad debts on the books.

      http://www.creditwritedowns.com/2010/08/gross-urges-full-nationalization-of-housing-finance.html

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        Shiller Index Confirms Bad News About Housing

        A double dip has been confirmed by the nation’s top housing forecaster for what that’s worth.

        Housing like most other things in life is notoriously difficult to predict.

        The 2 main numbers Case-Shiller shows are Composite-10 which was down .5% and Composite-20 which was down 1.6%

        The 1 positive is active inventory levels have dropped down to 8.1 months worth.

        Most experts say housing down through 2012 and into early 2013 but then improving from there.

        http://www.creditwritedowns.com/2011/01/case-shiller-numbers-confirm-housing-double-dip.htmlh

        housing prices also just moved below an important support level. They’ve cracked the post-bubble ‘maginot line’ which is a very bad omen. More details and charts here:

        http://www.creditwritedowns.com/2011/03/case-shiller-housing-data-confirm-move-below-post-bubble-trough.html

         

         

         

         

         

         

         

         

         

         

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          Surprise Pending Home Sales Up 20% in June

          The National Association of Realtors reports a surprising number in June’s report.

          1. Housing sales were up

          2. How far up they were

          Many expected a downer in this report. Go figure. Experts are human too and often make mistakes.

          You never know where real estate’s gonna go.

          Despite rising consumer cynicism the 20% jump came in.

          See the cynicism report here.

          reports of rising consumer cynicism

          http://agentgenius.com/real-estate-news-events/pending-home-sales-up-20-from-june-2010-beating-economist-projections/

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            Trulia Making Big Push With Social Search

            Trulia announced a cool service called “instant leads” which calls the agent phone and dials the consumer whenever a consumer leaves a phone number.

            This way the 2 parties are instantly connected.

            You know how important it is to get in touch with a lead within the 1st hour of their signup.

            Numbers show you do this and you close with them as your client 87% of the time. Your closing rate drops dramatically each hour after this time.

            What Social Search does?

            Realtors can ask their clients to give them reviews on Trulia which gets them shown more to other users around the Trulia site.

            It’s kind of like the Facebook newsfeed. More word of mouth recommendations are better and lead to more business.

            http://agentgenius.com/real-estate-news-events/trulia-launches-social-search-bets-big-on-realtors-social-graphs/

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              Ugly Houses Won’t Sell

              With the credit markets tightening this was thought to be the reason “fixer uppers” weren’t getting any love.

              Turns out buyers in this buyer’s market just don’t want them.

              They’re ignoring the rash of foreclosures which fall into the ugly category. If the ol gal is ugly with a beat up interior then buyers aren’t giving her a 2nd look.

              This thought is permeating the housing market right now.

              Bottom line, banks won’t lend ugly, buyers don’t want ugly.

              So if you’re selling an ugly you have 2 options:

              1. bite the bullet and pay to fix it

              2. sell at a deep discount to an investor who will fix it then sell it retail

              These are the only options for uglies in this market.

              http://blog.foreclosures.com/split-housing-market-ugly-vs-pretty-homes/

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                NAR Being Cautious About Predictions After Past Transgressions

                New leadership has been good for NAR. In the past real estate agents criticized them for being too rosy about housing prices and movement.

                The new regime hasn’t tolerated this.

                No blowing smoke up your asses here.

                Lawrence Yun, the current President, likes to tell it like it is. At least as close as forecasts can get to what actually happens in reality.

                http://agentgenius.com/real-estate-mortgage-economy/nar-economic-forecast-makes-interesting-predictions-appears-cautiously-optimistic/

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                  No Commission Shopping on Trulia

                  Want to see which realtors in your area discount their commissions?

                  Can’t do it on Trulia. Now that they bought agentleaf.com you’d think they’d bring this tech over but no.

                  Trulia’s much anticipated “instant leads” hasn’t turned out as expected.  The agentleaf.com buy out deal was thought to bring those technologies.

                   

                  No such event is occurring.

                   

                  It seems like a cop out from the Trulia people hiding behind “we’re not agents, we’re not licensed so can’t allow commission shopping”.

                   

                  But there’s nothing which says you have to be licensed to give info about realtors and those willing to discount commissions.

                   

                  So where’s the beef? So to speak.

                   

                  http://agentgenius.com/real-estate-news-events/trulia-will-not-offer-commission-rebate-shopping-agentleaf-com-permanently-closed/

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                    Investors More Efficient Ridding Foreclosures Than Bank Owned REOs

                    Check out this article http://blog.foreclosures.com/investors-selling-faster-than-bank-reos/

                    It's no surprise her findings are investors selling properties faster and
                    more efficiently than banks. This just makes sense.
                    Individuals are going to be far more efficient than huge lumbering institutions.
                    
                    It also highlights how vast the opportunities are in real estate right now.
                    As beaten down as things are now is the time to get in the real estate game and buy like crazy.
                    
                    There's 1 more big wave of foreclosures coming over the next 2 years.
                    
                    Do you want to surf the real estate tidal wave? Or be crushed under the weight of it?
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