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. 


Housing Prices Will Rebound in 2009 – Can You Wait To Sell Your House?

May 5, 2008

The real estate market peak, summer 2005 was a great time to be selling a house. All you had to do was post a For Sale sign in the front yard and you could expect multiple offers within days. Many times you would receive offers from individuals searching for homes FSBO and also offers from home buyers who had representation by a real estate agent.

Well summer 2008 is just around the corner and the real estate market is very different from three years ago. If you take an afternoon walk in any major subdivision you will see real estate for sale signs lining the front yards of houses like mail boxes. In cities like Las Vegas, Nevada, Stockton, California and Detroit, Michigan you will be lucky if you find a house with out a for sale sign. These are the cities that have the largest declines since the market peaked in 2005.

So how long will it take for the real estate market to rebound? Real estate economists estimate that home building and prices of existing homes will not stabilize and start to increase until the middle of 2009. This corresponds to the history of real estate cycles. If you research real estate cycles you will find that they typically last 3 to 5 years. That is 3 to 5 years for the real estate market to go down and hit market bottom, and 3 to 5 years for the real estate market to rebound and hit a new peak.

If you own a home and can not afford to hold out for another the real estate cycle then you may be wondering, how can I sell my house now? Well, you are not alone in this predicament. With home buyers waiting on the side lines for home prices to bottom out you will have a hard time selling your home now. There is one way to sell your house if you are very motivated to sell.

You can sell your house to a local we buy houses company. They are basically local entrepreneurs who make a living by owning real estate. They are very knowledgeable in real estate and solving complicated home selling issues. If you are going through a divorce, need to stop a foreclosure, sell your house before your bank takes your property, or if you home is 100 percent financed and you have no equity, they have a home selling solution.


Sell My House in Las Vegas – This is How To Sell a Las Vegas House Fast

May 3, 2008

Home prices in Las Vegas have dropped by over 22 percent in the last 12 months. Each and every month it seems there are more banks taking back properties through the foreclosure process in Las Vegas. That means there are hundreds of people who will have a foreclosure on their credit report which will have devastating affects to their life. Many of these people are saying, how can I sell my house in Las Vegas.

If you are from Las Vegas than you know the hard situation you are faced with. Your home has lost enormous amounts of value and most of you probably owe more for your house than what it is worth. You can not afford your house so you know you need to sell it, ,the problem is who do you sell to?

Well believe it or not there are still people who are buying houses in Las Vegas. Many people do not know that professional home buyers or real estate investors buy houses throughout the country, even in the hardest hit areas like Las Vegas. Home buyers are real estate investors who some times buy properties and hold for long term investments.

If you owe more for your Las Vegas house than what it is worth then you should consider selling your house to a professional home buyer. They will negotiate with the bank to get your name released from the mortgage and complete a successful short sale. This way you will not get a foreclosure status on your credit report, which will save you lots of money and hassle in your future.

Just this year there have been more than 155,000 houses lost to foreclosure. That is an enormous amount of people who either did not put effort into finding a home selling solution or did not know that professional home buyers can help solve complicated real estate situations. There is no reason people should loose their house to foreclosure. Banks will negotiate payoff amounts so you can sell your house.

The problem is many real estate agents and home owners try to conduct short sales themselves with no experience. This can be devastating to all parties involved. If you have never conducted a short sale do not start now. You need to contact a local home buyer who is a professional, knows the short sale process, knows what is required from the loss mitigation department, and knows how to negotiate, if you have any chance at success.

So if you own a Las Vegas house, or any house for that matter and are near foreclosure, or need to sell your house for one reason or another, do not give up. Contact your local home buyer and get a free consultation on your home selling options. There is no charge for any services provided by professional home buyers so you have nothing to loose.