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.


Falling Houseing Prices Continue to Rule The Economic World

August 6, 2008

When will the falling house prices finally plateau? This question is on the lips of a number of real estate market analysts and investors who are looking for the promised turnaround in a housing sector that continues to disappoint. Although regulations are becoming more stringent in the lending market and the real estate sector has seen some overall positive trends, the big factors of foreclosures and a reticent buyer attitude has continued to make property prices fall.

Some home analysts are wondering where the bottom prices are. For millions of American homeowners, the same question is being analyzed. With a stalled real estate market, homeowners are sitting tight, waiting for the storm of failing prices to past. While they wait, their home equity is slowly sliding by and the value of their home dips more and more. Many potential home buyers have decided to wait on the sidelines rather than risk selling their home for too little of a profit. And for those individuals who are in the market for their first homes, the unsteady market has played a role for these non-homeowners as well. The ability to secure a mortgage, and establish a good rate, has proven to be trickier as the market continues to spiral downward.

Last week, the National Association of Realtors stated that the median price of homes decreased 6.1% compared to a year ago. Sales from the previous month had also fallen 2.6%, which was a higher percentage than had been previously estimated by experts.

What hope lies on the horizon for home buyers and sellers alike? Fortunately, there are major housing packages that are currently in Congress that can help to turn the situation around. A beneficial package was passed by the House last week that would boost the market by assisting first-time home buyers.

However, analysts state that there are a number of factors that could make the housing market go up or continue to fall in the future. One of these factors is foreclosures. The increased wave of foreclosures has given banks a higher inventory of these properties. In turn, the banks have become eager sellers, wanting to get their foreclosed properties off the books as quickly as possible before prices fall again. However, the surplus of motivated sellers and a stale feeling coming from the potential buyers has locked a number of potential sales. As long as the lock continues, the prices on the properties themselves continue to drop down.

Rising energy and fuel costs coupled with poor mortgage situations have been to blame for the rise in foreclosures. However, so long as this trend continues, the drop in prices will follow suit. In addition, there is the question of over-saturation. During the real estate boom years, new housing developments sprang up quickly and were bought even faster. With the halt in the housing market, however, these projects are now additional surplus with reluctant buyers, leaving these homes vacant or worse, unfinished. As long as these trends continue, the prices in properties will continue to drop until more positive steps are taken.

If you are thinking how can I sell my house fast to get out from under this large mortgage, contact your local we buy houses professional. They existing in every major metro area and will give you an offer for your home. Their service is free and there is no obligation for you to accept their offer.


What Type Of Mortgage You Should Get To Avoid Foreclosure

June 2, 2008

Unlike the last generation, there are a number of influences that can go into your mortgage payment. These different factors have contributed to some homeowners losing their property entirely. When some of these influences catch the homeowner unaware, they can translate into foreclosure and bankruptcy.

The biggest warning that financial investors give to homeowners now days is to avoid biting off more house than your financial future can swallow. After all, there is more in your future than just a mortgage payment. It’s time to plan wisely.

In the past generation, there was typically only one income supporting the bills and mortgage payment. When one spouse lost a job, the other one could quickly get a new job to help support the family. This generation, however, has built their mortgage payments on the idea of a two income family. Therefore, when one spouse loses their job, the family as a whole can quickly spiral into financial chaos and disaster. Planning for a more conservative mortgage payment at the closing can help to shield the family should a job loss happen.

How can you determine if you have too much house? Most financial advisors suggest that you make your mortgage payment no more than 28 percent of your total income. By following these rules, you are more likely to keep your home and be on time with your home payments.

In addition to keeping your home mortgage payments within 28 percent of your income, you will need to analyze the rest of your financial obligations in future years. For example, will you need to save for kids college funds? How much will you need for these financial requirements? What about your retirement? Are you building two retirement plans?

In addition, there are a number of hidden costs in home ownership. Things like home maintenance, repairs and Home Owners Association fees can add up, in addition to your usual costs like insurance and taxes. There are additional expenses that might come into play, affecting your home mortgage payment. For example, if you have an expensive hobby like traveling, you will want to free up more of your income for these expenses.

Your income or the income of your familys breadwinner can be a strong influence in how much of a house you should buy now. If you do not have a consistent income or see your income hitting a plateau or lowering in the future, this can be a significant influence for your mortgage payment.

Unlike the previous generation, the average workforce individual changes employers over the years. Through this fluctuation, income amounts can change, affecting your mortgage payments. Making your mortgage payments more conservative can help you save more money during the wealthier times and help you stay afloat during the leaner months.

If you do not have to worry about retirement or are completely debt free, rejoice. Few people fall into this category, but for those that do, the mortgage payment is a direct outcome. With less money paying the interest on credit card debts and car loans, the more money will be applied towards the home, building equity.

If you did buy a house with a large mortgage payment and are now finding that you can not afford the mortgage, maybe even needing to stop foreclosure, then contact you local home buyer. Local home buyers are professional real estate investors who buy houses from people just like you. You can get a free, no obligation offer for any house with in 24 hours. If you are thinking how can I sell my house fast, then you have nothing to loose.


Will Lenders Pay for the Mortage Crisis?

May 18, 2008

If your community has been largely affected by the foreclosure rates around your home, you might be wondering how this could have happened and who will be held responsible for our real estate market mess. After all, someone must have foreseen the mortgage issues headed towards many of these former hot real estate markets. Why was nothing done sooner to prevent the huge losses?

In fact, many real estate market experts have been vocal about the negative impact of the mortgage loans. However, despite warnings, many novice homeowners or uneducated buyers have found themselves in financial quagmires that are impossible to solve. As foreclosures are rising and our economy slows, lawmakers are turning their attention towards the mortgage lenders who originally propped up the cards to watch it all fall down.

Specifically, a Senate subcommittee has been formed to investigate the possibility that mortgage lenders abused the bankruptcy code to file loans for individuals who would not have qualified for the money previously. By misusing the bankruptcy system, mortgage lenders and companies were able to impose high fees whose legality is questionable. In addition, these high fees and misuse of the bankruptcy system directly played into the foreclosure problems that many homeowners are currently facing.

In essence, the Senate subcommittee is looking into whether mortgage lenders and companies intentionally played towards people who were too ignorant or overwhelmed to truly understand what financial situation they were getting into. By concentrating too highly on the property, but underplaying the fine print in the mortgage loan, these institutions were blatantly acting fraudulently and requesting too much money from individuals who simply did not have it. Although the mortgage lenders were aware that they were placing a nearly-impossible financial situation on these homeowners, they are accused of not exercising ethic restraint by giving out these loans.

The Senate subcommittee will look into not only past actions by these mortgage lenders and institutions for penalties, but also increase the level of penalties given to those lenders who manipulate the bankruptcy law for their own financial gain – and consequent ruin of other investors.

Originally, bankruptcy laws were initiated to give homeowners with financial issues the chance to keep their homes. However, with the questionably high fees demanded by these mortgage lenders and institutions, the ability to pay off the home was impossible, despite the bankruptcy protection clause. For this reason, more and more people were permanently removed from their homes while certain mortgage lenders and institutions pocketed the money.

One reason for the subcommittee investigation comes on the heels of a sharp increase in foreclosure filings. With an increase of 112 percent since last year, lawmakers are concerned that the problem will grow even worse as many mortgages will be reset and increased this year, causing numerous people who are just barely hanging on to lose control completely. With these extra fees putting the homeowner in a worse position and having them fall even more behind, the mortgage institutions are under direct scrutiny over the legality of these fees and their execution.


Where the Real Estate Market is Currently Growing

May 15, 2008

Read an article on the real estate market lately and you will find little more than tales of gloom and doom. Recession impact, the falling dollar, real estate bubbles bursting the hot markets – the combination of all these factors are the culmination of real estate gurus warning of an inflated real estate market for years now. These fears and vocal warnings have impaired the real estate market, stifling housing sales and highlighting foreclosure problems for banks in communities nationwide.

However, despite the bad tales of the real estate market that abound in the news, there are plenty of areas that are growing, improving and seeing positive changes in their housing sector. Although much of the nation will be either stagnant or continuing to show a decline, these regions are growing, boosted by local economic factors that are shielding the community from a housing bubble catastrophe and giving local investors in these areas something to smile about.

Take McAllen, Texas for example. With a 12 month forecast of 4 percent increase, this area of the country is sitting on strong real estate possibilities. The five year price change for McAllen has been a steady 23.3 percent, giving this region a slow but steady outlook on their housing market. This Texas region might see the strongest positive return for their housing market, but there are other states that will have multiple cities with positive growth predicted in the next 12 months.

Rochester, New York is already a popular place for families, but with real estate prices seeing a strong 2.7 percent increase in the next year, Rochester is looking even more financially fantastic. With a 20.1 percent rate of increase over the last five years and an admirable 5 percent change in the foreclosure rate, Rochesters real estate market is looking ideal to many investors and families alike. New York in general seems to be avoiding the real estate crunch as cities like Buffalo and Syracuse are also predicted to see steady 2.4 percent and 2.6 percent increases respectfully in the area.

New Orleans has been predicted to make a strong step forward this year with a 2.2 percent increase in the real estate market. With a 49 percent rate of foreclosure change, it seems this personable city has found its feet after hardship and will start its inevitable climb to being an enviable place to own a home again. Nearby Baton Rouge has also enjoyed a 1.9 percent housing increase predicted. Combined with their lower 14 percent rate of foreclosure change, Baton Rouge and New Orleans combine to make Louisiana a preferred housing market.

With 75 of the top 100 U.S. cities expected to see falling real estate prices in the next year, these housing areas are anomalies. With record foreclosure numbers and plummeting prices, the fastest growing real estate markets are nothing to sneeze at. Many real estate experts are predicting the full impact of the real estate bubble burst will not be finished until 2010. Areas like California and Nevada are clinging to their homes, but if you happen to live in McAllen, Texas and other hot markets, rejoice. Your homes are steady throughout the real estate crisis.

© ExpertHomeOffers.com 2008


How Inflation and the Dollar are Hurting Your Chances to Sell Your House

May 14, 2008

Paying a mortgage bill is one of the largest monthly bills the average family faces. When the economy dips into a recession, the mortgage payment can seem increasingly daunting. Our current economic situation couples the recession with increasing gas prices and a falling dollar. What does this mean for your mortgage interest rate, your monthly payments and your house value?

Currently, Fannie Mae is allowing some homeowners to refinance their house if they owe more than what their house is actually worth. How could they have gotten into this situation? The answer is interest rates and the decrease in the value of houses. If the interest rate on the mortgage was variable or subprime, the interest rate and consequent mortgage payments can jump vastly higher than what the actual value of the house is worth. Also in almost all major cities across the nation home prices have dropped, meaning now homes have mortgages that are higher than the value of the house. This move by Fannie Mae is significant because in essence, it means that Fannie Mae is willing to take some loss on the current mortgage loan situation for some homeowners rather than let them default and lose their home entirely.

This move by Fannie Mae may help people in many areas in the nation. Cities like Las Vegas, Stockton California, Detroit Michiga, Boise Idaho and others have seen a dramatic decrease in home prices. The bad news is not all home owners will quialify for the refinance help. In order to qualify you have to meet standerds like good credit, have an certain type of existing mortgage and that mortgage had to be put in place at a certain time.

Homeowners and new home builders are in a pinch. Census data seems to have underestimated the number of new homes that have not been sold and foreclosure rates are steadily climbing. In addition, the inflation rate is growing. This pinch on the everyday homeowner can be significant, causing some homes to question whether they can survive during this treacherous time to keep their home through this recession. With the falling dollar in the market, investors are pulling funds from national banks and putting their money abroad, causing national banks and investments to feel the pinch as well. Mortgage rates are unlikely to spike any time soon, but even a small increase could spell bad news for those homeowners just holding on to making their payments on time and avoiding foreclosures.

What else could possibly affect our mortgage interest rates and the housing market overall? The weak labor market plays a large role in the housing market. The economy is in a virtual hiring freeze, while some companies have already started laying off workers. Job loss has always precipitated trouble in the housing market. In addition, overall job loss in the community makes workers and homeowners scared, limiting the housing sales. Any time the general feeling is to hold onto the house you have instead of try to sell it or take on a larger mortgage payment, we are experiencing a weaker housing market. As employers and workers feel more confident about their employment possibilities, the housing market will improve as well.

Interest rates will be dictated by the Federal Government. In early May 2008, the Fed cut the interest rate, which pushed the 10-year treasury rate up. The 30-year mortgage rate follows the treasury rate, so an increase in the payments due would have accompanied this move in the financial sector. In general, homeowners and workers are trying to maintain what they have instead of pushing to take on something new and stagnant movement like this can spell trouble for mortgage rates.

If you are in a financial situation and thinking how can I sell my house fast, then contact your local home buyer. Every major metropolitan area has professional home buyers that help solve home seller problems. They help people avoid foreclosure, with short sales, sell because of divorce, cash out of investment properties, or sell if you have no equity. So contact your local home buyer and receive a free offer for your house, you have nothing to lose.


Home Inventory Continues to Climb – How Can You Sell Your House?

May 9, 2008

A recent survey conducted by a California based real estate company reported a 1.3 percent increase in housing inventory. These are houses that are for sale on the multiple listing service or MLS through the month of April 2008. The survey was conducted on 29 major metropolitan areas across the United States.

The results of the survey show a continued supply of houses for sale on the market in most major metro areas. This increase in housing inventory will further depress home prices. After all, the supply for homes has definitely not increased.

The major cities who saw and increase in the number of houses for sale hit the market were Austin Texas at 7.1 percent, Chicago Illinois with 5.9 percent, Boston Massachusetts with 5.6 percent and Philadelphia with 5.4 percent increase.

Interestingly enough Las Vegas, currently the capital of the foreclosure crisis saw a decrease in the number of homes on the market. This in contributed to many banks accepting shorts sales and selling homes on their books they receive from foreclosure. It is also contributed to the fact that Las Vegas has one of the fastest drop in home prices in the nation.

If you own a home in Las Vegas this news is like a double edge sward. You now may have a better chance of selling your house but you obviously will be selling for much less. In some cases 25 to 30 percent less than you could have sold last year. The good news is the news of a decreased number of houses for sale in your area could be a start of a real estate bottom.

Another interesting fact is the number of home owners who have dropped the sale price on their home. Of the 29 metro cities where the survey was conducted, Orange County California tops the number of homes who had a reduced sale price last month with over 49 percent of the homes dropping price. Other areas that top the home price reduction survey are Las Vegas Nevada, Jacksonville Florida, Bakersfield California, Las Angeles California, Miami Florida, Washington D.C. and Sacramento California.

If you do need to sell your house quickly I suggest you get in touch with a local real estate investor who knows your local market and can buy your house quickly. ExpertHomeOffers.com is a company who connects home sellers with professional home buyers. They have a very large network of real estate investors who are always purchasing homes and increasing their real estate portfolio. 


Sell My House to a We Buy Houses Professional

May 4, 2008

This article is to inform home owners of the best way to sell their house given the current real estate market. Everyone knows by know that the real estate market is very slow and anyone who wants or need to sell a home has a very large task ahead of them. The problem is some people need to sell their house, not just want to.

If you are a home owner and need to sell your house for what every reason you do have options. You see, I know that life happens. There are many life changes that can turn your house from your largest asset into your largest liability. If you are going through life changes like, loosing your job, need to stop foreclosure, needing to move out of state, going through a divorce, receiving a home through an inheritance, or any other life change that results in you needing to sell your house, then contact your local home buyer.

Local home buyers are real estate investors who buy houses quickly from people who need to sell them quickly. Many people make the mistake of assuming that real estate investors all need to get large profits from home sellers. This is not true. Even if you own more for your house than what it is worth, you can sell your house to a real estate investor.

Yes, even if you owe more for your house than what it is worth you can sell it. Have you ever heard a real estate agent say that they would buy your house. probably not. Real estate agents are compensated by home sellers paying them a percentage of the sale price of your home. Well if you have no equity how can you pay a real estate agent. That is why if you have no equity you need to contact a local real estate investor who is fluent in short sales and will buy your house.

A real estate investor who is fluent in short sales will negotiate with your lender and buy your house for what you owe. You can walk away from your house after the short sale and not have a nasty foreclosure on your credit. Foreclosures last 10 years on your credit you know. That means not being able to buy another house, cars, getting credit cards, etc. When you finally convince a company to lend you money you will pay a higher interest rate because you have a foreclosure on your credit.

So, you only need to due one thing to get the process started. Complete our home seller form and we will get you in contact with a professional home buyer in your area. You definitely need to make sure you work with a professional. Don’t make the mistake of calling those we buy houses signs on the side of the road. Work with a professional and you will have a very good change of selling your house fast. 


Foreclosures Up 23 Percent – Sell My House

May 2, 2008

The 2008 first quarter results are in and they do not look good. Foreclosures are up 23 percent from the first quarter in 2007. This marks record foreclosures across the nation. Now one in every 195 house holds is in some sate of foreclosure.

We are only four months into the year and already over 156,000 home owners have lost their homes to foreclosure. The real scary thing is that the foreclosure rate is not slowing down, it is actually speeding up. This means we will see more foreclosures each and every month. There were only 4 states in the nation that did not have increasing rates of foreclosure.

So where are the hardest hit areas? Nevada, California, Florida, and Arizona top the list with the largest amount of foreclosures and the trend does not look to be slowing anytime soon. One out of every 54 homes in Nevada is in a sate of foreclosure. This is amazing considering they are still one of the fastest growing cities in the nation. Many people moving to Las Vegas and other areas of Nevada are renting until they see the market bottom.

Many people are wondering if the newly passed government programs created to help stop those falling into foreclosure is helping. Despite all the effort the government has been putting into new bills and laws to help stop the foreclosure nightmare, it just does not have a chance against all the default loans. It is like sending trying to stop a freight train with one box car. The laws that are being created are taking time to create and are only helping a few home owners. They have no chance stopping the foreclosure momentum.

Even more disturbing is the fact that over 360 billion dollars worth of mortgages with adjustable interest rates is going to reset in 2008. This is only going to increase the number of foreclosures across the nation.

So what can you do if you live in Las Vegas, Stockton California, Detroit, or any other area and you are starting to loose your house to foreclosure. There is a simple and easy answer, sell your house. Now you might say, easier said than done right? Well it is in fact that easy. Even though there are not many home buyers looking for houses you still can sell your house.

The best way to sell your house if you are falling behind on payments or see the foreclosure monster coming your way is to contact a local professional home buyer. You see, there are many ways to sell houses and professional home buyers make a living from helping people sell their house, at no cost to you I might add.

Even if you owe more for your house than what it is worth, you can sell your house. Local home buyers will work with the banks to release the loans against your home and they will buy it from you, all this at no out of pocket expense. The problem is many people do not realize that professional home buyers exist, they think the only way to sell a house is through a realtor or for sale by owner, not true.

So, if you need to sell your house to stop foreclosure contact your local home buyer and receive a free offer on your house today. If you contact them today you could have an offer on your house within 48 hours. They can explain to you your home selling options and possible solutions. Then you just choose the right one for your situation.


Sell My House – How Much Is My House Worth – Get My House Value

April 28, 2008

Given the recent decline in the real estate market many home owners are wondering how their homes value is holding up and how it has been affected.
 
Now days there are great ways to tell your homes value but you have to know which ones you can trust, which ones are accurate, and which ones are quick and easy.
Here are the fastest and easies ways to find out what your house with worth if you were to sell it today.
 
The best and fastest way to find out what your property is worth is to complete a quick online form to receive an offer from your local home buyer. Many people do not realize that local home buyers exist in every major metropolitan area across the United States.
 
The easy online form will take you less than 1 minute to complete and is very quick. Once you complete the online form your information will be forwarded to a professional local home buyer in your area that is very knowledgeable with your local real estate economy. You will typically be contact within 48 hours to give you details on how much your house is worth if you would like to sell it today.
 
The offer you receive is a no obligation offer and all your information is confidential. Most often attached to the offer will be a market analysis showing houses that are similar to  yours that have sold in the last 3 months. If you want to know your homes sales price would be if you sold your house today, contact your local home buyer and receive a free offer.  
 
Many people like to find out what their house is worth by driving their neighborhood to see how much their neighbors are selling their houses for. The problem with this method is every house is different and most people make the mistake of looking at active houses on the market for sale.
 
When you determine your homes value you need to consider what homes have sold for in the past, not what they are currently on the market for today. Many times the asking sale price of a home is not what the home actually will sell for. Especially in this real estate market where home buyer are offering low ball offers to see how much of a discount they can get.
 
Another way people try to determine the value of their house is to look up their tax assessed value of their home. The value of the home is based on two numbers, the land value and the home or structure value. Many tax assessors estimates are not accurate and are either over or under estimated.
 
If you are wondering how can I sell my house and you need to know how much your house is worth, contact your local home buyer. It is the fastest and easiest way to determine your homes value with no obligation or effort.