Good News From The Real Estate Bust! – End of Subruban Communities

December 20, 2009

The housing crush has had a range of side effects across the nation. However, with more and more new home developments struggling to fill the new properties, a new phenomenon has appeared. There are fewer and fewer new suburban developments showing up on the fringes of communities.

Expansion that was so rampant in the real estate boom has suddenly disappeared or stalled midproject, leaving empty houses gaping at passerbys.Some of these communities are filled with homes that are in foreclosure which makes it harder to sell a home next door. Home owners have vacant lots next to them and they need to stop foreclosure themselves.

What are the pros and cons to the recent disappearance of these suburban communities? Besides the obvious financial troubles with the construction companies associated with these areas, there is an impact for the local homeowners as well.

With fewer inhabitants and stalled increases in the homeowners to these commuter communities, morning commutes into the city are less than what might have been if these suburban areas had filled. Enticed by lower prices and more house available through these suburban communities, more and more homeowners looked to purchase these properties during the real estate boom years. However, as the real estate market has stopped, these homes are not being filled, making the commute to the city a little easier.

Areas like Prince William County have shown the impact of this suburban community disappearance. With a deflated real estate market and increasing gas prices, the foreclosures have pushed median home prices down 32 percent in just the last year alone. Fewer individuals are on the interstate and more are crushed into crowded buses headed to Washington D.C. This area of the county has seen the impact of tightened credit restrictions and fewer buyers. The bubble has popped here and the impact was swift and sudden.

Zillow recently performed an analysis of markets to determine what has happened to the inner and outer suburbs in major cities nationwide. What they found was very interesting. Essentially, the prices for inner suburbs, those within a ten mile radius from the center of the city had changed little. However, as the radius grew larger and larger as far as fifty miles from the center of the city, the prices dropped drastically.

Of course, if the city was close enough to another major metropolitan area such as the case with Washington D.C. and Baltimore, for example the prices would begin to rise again as proximity to the neighboring town increased. Other cities proved the opposite reaction. Some areas like Atlanta, Dallas and Detroit that often have rough and tumble downtown areas still saw improved prices in the suburbs far away from the center of the city. Detroit has a weak economy in the center of town, making homes here less desirable than the benefits offered in the surrounding communities. Atlanta, on the other hand, has had a number of premium condos built that has offset the nearby home values.

An oversupply of new homes in the suburbs is affecting the existing home communities nearby. As fewer and fewer new home developments are being purchased, these properties are drastically reducing their prices to get the homes sold. Oftentimes, these price drops ultimately cause the entire neighborhood to lower prices because the competition is all around.

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Harvard To Study The Real Estate Market – When Will It Be Easy To Sell My House

July 7, 2008

The fact that the real estate industry is at a low point right now is not a secret. However, even Harvard has taken on the real estate market to analyze what is currently influencing and affecting the industry.

Home prices and sales in the real estate market have plummeted. In addition, foreclosure statistics are increasing dramatically and rates to secure a new mortgage are rising. With the housing market looking so bleak, Harvard studies decided to see what factors impact future housing decisions. Most importantly, these Harvard studies want to see when the real estate market will improve as the industry has a strong impact on the overall economy.

The current real estate market has many home owners wondering, how can I sell my house, where are all the home buyers. When the real estate market takes a turn for the worst hundreds of thousands of home owners are stuck with a home they either can not afford or do not need. For this reason Harvard has decided to study the real estate market and decipher, what will bring the real estate market back to life.

According to the latest study from the Joint Center for Housing Studies of Harvard University, the future is looking bright. The country is set to improve in the real estate sector in the next decade. Specifically, the demand for housing will help to offset the current problems in the industry.

The best news for the housing market is that the United States is growing. With an increase in population, the need for places to live will grow exponentially, helping to drive the need for more houses. In addition, there are a variety of social trends that will help fuel future housing increases. People are getting married later in life and getting divorced more and more frequently, making the number of single person households increase. In addition, there is a higher life expectancy for baby boomers and echo boomers.

Finally, immigration will play a large role in the increase in housing demand with an annual projection of 1.2 million each year. In other words, from 2010 to 2020, the number of households needing a home will increase on average by more than 1.4 million each year.

This increase in housing demand will play a critical role in improving the current real estate market. Once the effects of subprime mortgage rates and other housing impacts become steady again, the real estate market will see an increase in the industry due to these social factors and immigration.

However, before the good times in the real estate sector can begin, the number of unsold homes must decrease. The number of vacant homes currently available for sale rose 46 percent to a total of 2.12 million homes from 2005 to 2007. These vacant homes have terrorized the existing real estate market, lowering prices and halting new construction. As of earlier this year, there was an 11 month supply of unsold new homes.

If you need to sell your vacant home I suggest contacting your local home buyer in your area. Local home buyers are professional real estate investors who purchase houses quickly for cash. This service helps you sell your house quick so you can move on with your life. Besides, a vacant house could be a great home for another loving family.

To compare, a six month supply is considered a buyers market and the 11 month statistic shows the deep increase in unsold homes currently on the market. With a reduction in supply, prices will again rise, interest rates will go down, employment will increase from construction and other related industries and consumer confidence will once again climb.

The factors that impact the real estate market are set to change our current dip. All we need now is time to bring about the social changes and immigration in order to see the housing market back on its feet again. When this happens home owners will have a better change to sell their house fast for the price they need. Until then, if you are thinking how can I sell my house myself for a fair price, contact your local home buyer.


The Fate Of The Real Estate Agent

June 21, 2008

It may have taken longer than with other industries, but realtors are starting to see the impact of the Internet on their incomes. While the Internet has provided easy access to much more information for realtors to do their job better, it has also given the same information to homeowners looking for ways to save while looking for a new home.

Specifically, sites like HomeGain and Zillow are showing realtors that their industry will need to change or they will be reduced in numbers. Since these websites are giving away precious real estate information for free, commissions are dropping for realtors.

What is the main motivating factor to sign on with a realtor? In one word, information is the key reason why most homeowners will choose a realtor for their home buying and home selling needs. After all, realtors have access to information the average person cannot obtain. However, with the appearance of HomeGain and Zillow on the marketplace, access to the information has now become public knowledge.

In the past, you simply could not buy or sell a home without the use of a realtor. Their access to the National Association of Realtors’ multiple listing services was essential to buying or selling your home in an appropriate amount of time at a price that suited the homeowners. Only real estate agents knew what homes in the area were being sold for and they were only willing to share that information for a commission, the standard 6 percent.

Now, however, real estate information has become available online and become available for free. Any average homeowner can get a estimate on their homes value through RealEstateABC, Zillow and HomeGain. Or they can get an offer on their house from sites like ExpertHomeOffers. Should a homeowner want to put their home out there for public access, they can easily place their property information on ForSaleByOwner and other sites.

Accuracy, however, is the drawback for these websites and currently, the saving point for realtors who might worry about the future of their careers in the face of these daunting information sites. Currently, Zillow can be slightly off on homes in neighborhoods where fewer properties sell. These sites will be more accurate in neighborhoods who have had a number of sales recently to better gauge comparables in the area.

However, a realtor will have a similar problem in a neighborhood that rarely sells properties and websites like Zillow have an advantage they are not biased. Whereas an overzealous realtor might inflate home estimates to win over prospective clients, Zillow and other similar websites tell it exactly like it is, for better or worse.

Another down side of not using a real estate agent in a new home purchase or to sell a home is that a real estate agent can protect your best interests. Home owners rarely buy or sell real estate and most need help through the process. It can be complicated and if you make a mistake it can cost you thousands.

However, if you need to sell your house fast you would be much better off selling to a local home buyer in your area. They exist in every major city in the nation and they buy multiple homes each month. They mostly deal with people who are facing foreclosure, moving out of state or recently inherited a home, but their service is free.

The change in the real estate market mirrors what happened with traditional stock brokers whose monopoly on trading information was threatened with the advent of investing websites. Just as these stock brokers had to change their offerings and lower their fees, so too will realtors have to change in order to be a viable and important part of the real estate market. Rather than fight these informational websites, realtors will have to find ways to make their services invaluable for the homeowners who will need their marketing skills and experience in the real estate market.


How You Are Affected By The Foreclosure Next Door

June 11, 2008

Your neighbor is facing a foreclosure. Not your problem, right. Think again. If you have a foreclosure in your neighborhood even if you are not struggling to pay the mortgage in your own home, it can spell trouble for your property. If you think the foreclosure crisis spells bad news for a number of individuals, but will have no impact on you, you are wrong. There are a number of reasons you should help your neighbor avoid foreclosure is you can.

Millions of Americans are losing their homes, but the impact is that these neighborhoods are drastically changing. If you live in a neighborhood that has seen a number of foreclosures, your property values could be at a standstill or worse dropped significantly. In addition, neighborhoods with heavy foreclosure statistics have been proven to see more vagrants, drug dealers and prostitutes as these people take advantage of the empty buildings. As more and more homes are seen to be empty, their friends pass along the word and the neighborhood will go downhill. This is just another reason for you to help your neighbor stop foreclosure.

When your neighbor has a foreclosure and the house is vacant, it is a welcome mat for vandals. Thieves love to frequent foreclosed homes, stripping copper wires, plumbing, carpet and more valuable items from the home, leaving it even more of an eyesore. All neighbors can do is watch helplessly as their neighborhood becomes less desirable to live in. In addition, broken windows and overgrown lawns send a clear signal that the neighborhood has fallen on bad times and that message will include your home. Inner city problems like graffiti and drugs will enter the empty buildings and have a stronger influence than the rest of the well meaning neighbors.

As foreclosures spike, gang activity and crime accompanies the problem hand in hand. Studies have shown that for every 1 percent increase in foreclosures, there is an associated and accompanied 2.23 percent increase in violent crime and problems. There have been numerous examples of the impact of foreclosures on such cities as the hard hit Cleveland, whose Slavic Village had troubles with foreclosures over a decade ago. Las Vegas, Jacksonville Florida, Miami Florida, Orlando Florida, Stockton California and many other area will feel the same changes.

The foreclosures from high cost loans transformed the middle class neighborhood to a series of empty eyesores, encouraging crime, vagrants and drugs. As the quality of life disappears, so do the prices on the homes, trapping existing neighbors into a lower value home in a decreasing neighborhood. More and more homeowners feel the impact of the foreclosure tidal wave.

Roughly 3 percent of all homeowners are thought to go into foreclosures by the end of 2009. However, from this small 3 percent, 43.5 percent of all homeowners will feel the impact of foreclosure crisis. This means that nearly 40 million homeowners will see their home values plummet in the next two years due to foreclosures. For each home, that is an estimated loss of 8,771 dollars. This is a significant loss and provides a definite tangible effect on the economy as many homeowners have the majority of their portfolio in the equity of their home. If the neighborhood is in a state that is more likely to experience a foreclosure, the financial depression can be even worse, making the average loss drastically higher, no matter what the other homes are doing.

So what can you do to help stop the foreclosure crisis affecting your neighborhood. The first thing you can do it talk with your neighbor openly about the issue. Let them know that you are a helping friend and are willing to help with their financial crisis. I do not mean by paying their mortgage but by finding a home buyer for their property. After all if you find a buyer the home will not go vacant and your home value will not go down.

Help your neighbor or friend who is facing foreclosure and thinking how can I sell my house, by getting them in contact with a professional real estate investor who buys houses to stop foreclosure. The fastest way to contact them is by typing the words Local Home Buyer into Google and completing some online forms. You will be connect with a local home buyer in your neighborhood that will give you a free offer on your house at no cost or obligation, so you have nothing to loose.