From CNBC about the Real Estate Markets

Is Now the Time for Some Home Buyers to Make a Deal?
HOMES, BUYING, REAL ESTATE, HOUSING, PRICES
Posted By: Mark Koba Senior Editor
CNBC.com
29 Apr 2009 12:41 PM ET
While housing prices are continuing to fall, prospective home buyers may not want to wait much longer for the market to hit bottom, experts say.
"Most of the big declines in home prices have occurred," says Lawrence Yun, the chief economist at the National Association of Realtors. "Any more will probably be minimal."
Part of the reason is that homeowners are becoming more realistic in listing their asking price.
"Home prices are where they should be," says Robert Abbott, co-owner and VP of Abbott & Caserta Realtors in northern New Jersey. "Sellers are accepting the current reality and are pricing more realistically."
The latest Case-Shiller report shows that home prices in 20 cities dropped 18.6 percent in February from a year earlier. But for the first time in 16 months, that rate of decline eased from the prior month.
A look at the median home prices across the U.S. shows that some prices have actually risen in recent weeks, according to the National Association of Realtors.
RegionJanuary '09February '09Northeast $227,000$251,000 (up)South$143,300$146,700 (up)Midwest$131,000 $131,000 (same)West$215,000$204,600 (down)
The median prices are still down from the same time in 2008, but that's more a reflection of what were over inflated prices, says Abbott.
"We're experiencing an adjustment in prices," Abbott says. "From my area, we've been in a down market since 2005 and I think we are now at a stabilized place."
The current price level of homes seems to be drawing more buyers into the market, says Jim Gillespie, CEO of Coldwell Banker.
"We are seeing a lot of activity across the nation," says Gillespie. "Of course we're in the Spring market, but we've seen more buyers in the market now than at this same time last year."
More people are not only 'kicking the tires' but actually buying right now, says Abbott.
"We are showing significant activity when it comes to sales," Abbott says. "The number of days for a house on the market are going down."
But not all levels of housing are seeing the benefit, according to Cindy McLellan, a real estate broker in Denver, Colorado.
"Lower levels of home prices are seeing more of the activity," says McLellan. "Higher priced homes, those in the $1 million range and above, are still taking some time to sell. High enders still have trouble getting jumbo loans and sellers are till trying to make a profit."
McLellan says it's the first time home buyers that are driving the market. "With the $8,000 tax break from the Obama Administration and lower interest rates, first time buyers really have an incentive to buy and they are."

Not everyone thinks housing prices have bottomed or might not even go lower. Fred Skolich, president of Skolich Real Estate in New Jersey says prices remain in flux.
"I think they are still going to come down," says Skolich. "We're in the middle of the Spring market. After we get away from that, I think you’ll see some further adjustments in price."
"There's no need to rush," says J. Andrew Hansz, an associate professor with the department of finance and real estate at the University of Texas at Arlington. "It's a buyer's market right now. If you need a place, it's a good time, but buyers are in control."
But home buyers waiting on the sidelines to time the market could be making a mistake, says Skolich. "You might wait for a lower price, but then interest rates could go up," Skolich says. "It's like a stock, you don't know if you're really buying at the bottom or not."
And those prospective buyers making low offers, might find themselves in a bidding war, says NAR's Yun.
"I think some buyers are trying to steal property by offering low prices," says Yun. "But even in those markets that plunge, buyers are coming back and making bids."
"We've seen some bidding wars" says Robert Abbott. "It's very competitive especially when the home is priced right."
Whether someone is in the market to buy, just looking or waiting for prices to drop even more, analysts say the current state of housing is the best it's been for some time.
"I'm not just saying this because I'm in real estate, but I think it’s as great a time to buy as I have seen in my 34 years in the business," says Coldwell Banker's Gillespie. "Houses are affordable, there are plenty of homes to choose from and you have record low interest rates on 30 year mortgages."
© 2009 CNBC.com
URL: http://www.cnbc.com/id/30455148/

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Why Now is a Good time to Buy

The Case for Buying a Home Right Now April 9, 2009
Low interest rates and very
From the Wall Street Journal
Talk about capitulation! Judging from my mailbag following last week's coverage of the Case-Shiller housing numbers, almost nobody has a good word to say about the real estate market any more.
I'm an instinctive contrarian. So I hope readers don't take it the wrong way when I say that when so many of you agree with me, I start to get nervous.
And where is my hate mail? The brokers must be totally whipped. Even a year ago anyone questioning housing prices could reliably expect a torrent of furious replies from those in the business.
Today? Almost nothing. And the few left are mostly of the "U r an idiot (Sent from my iPhone)" variety. Pitiful.
Maybe the moment of maximum pessimism is at hand after all.
More on Homes
Home Prices Low, But No Bargain
Dream Bailout Has a Dark Side
So let me play devil's advocate and consider the positive case for buying a home right now.
The key factor: Interest rates.
If you can borrow at 4.5% or 5% over 30 years, many purchases start to look appealing. Especially if we get a hefty dose of inflation down the line.
If that happens, your monthly payments will be low and you'd get to repay the principal over time with devalued dollars. That's a double win.
Inflation isn't guaranteed: The bond markets are only predicting about 1.4% inflation over the next 10 years, and BCA Research recently reminded clients that deflation, or falling prices, remains a danger. Unemployment is still rising and recent wages actually fell.
Yet if you had to bet from here, you'd bet on inflation in due course. The government is running massive deficits and has the printing presses at full throttle. That's the classic recipe.
And inflation is the debtors' friend -- which is why it is surely going to prove the politically expedient way out of this mess.
Anyone purchasing hard assets like real estate, with a 5% fixed rate loan, ought to make good money if that happens.
When it comes to the house prices, it's true they may not have fallen as far as you might expect.
A recent analysis in the Financial Analysts Journal ("When Will Housing Recover?") suggested prices nationwide still weren't cheap by historical standards in relation to household incomes.
Homes were much cheaper, say, as recently as the 1970s.
Furthermore: the bigger the bubble, the bigger the bust. Considering how sharply home prices climbed from 2002 to 2006, one might expect real estate to end up really, really cheap before bottoming out. And you wouldn't expect a quick rebound either. Japan still hasn't recovered from 1989.
But if you are thinking of buying a home, here's the more positive news: While overall market averages may not be as cheap as you might have expected, you can probably ignore them.
There are plenty of deals taking place far below the official average levels. The indices are masking a huge disparity in prices.
Even the National Association of Realtors concedes distressed sales – including foreclosures and short sales – are closing about 20% below "normal" market rates. (Never mind how to define "normal").
Aggressive buyers are finding some simply terrific deals. And they're paying with cheap debt, too.
Default rates are rising. Lots of sellers are forced. A buyer with options holds all the cards.
Once upon a time, the name of the real estate game was "let's make a deal." Today, it's "take it or leave it." If the seller won't take your offer, his neighbor probably will.
Write to Brett Arends at brett.arends@wsj.com

Selling Your Home and Finding the Deal

Cosmetic Flaws
Many buyers make home buying decisions based primarily upon emotional reactions to the homes we show them. A freshly-painted house with clean windows and waxed floors will sell for top dollar, while a nearby home which needs a lot of cosmetic attention may languish on the market, even with a much lower asking price.If you find yourself in the position of comparing two such houses, put your imagination to work. If the only difference is paint, cleaning, and carpeting (or getting unsightly furniture moved out), remember that these are fairly low ticket items that you would probably choose to do even if the house is in good shape. If you focus your attention on the location and the condition of the structure and the major systems, you may be able to get a "not-very-rough" diamond at a great price. If cosmetic problems make you nervous about the home, the structural inspection can answer most of your questions.
Look for GREAT Bones and you will save money in the long run. You will also be able to make the home uniquely yours.

National Search For Homes

NationalHomeSearch.com

FINDING THE PERFECT HOME

THERE IS NOT A PERFECT HOME EVEN IF YOU BUILD IT YOURSELF

Thinking there is only one perfect house out there is a big mistake and it may keep you from finding the right home at the right price.Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. We often say "Buyers are Liars" because buyers say they want one thing and then you show them something totally different or a home that incorporates just what a client says they do not want and the Buyers Fall in Love with the Home.
With so much information readily available online, clients sometimes ask me, "Why should we hire a real estate agent?" They wonder, and rightfully so, if they couldn't buy or sell a home through the Internet or through regular marketing and advertising channels without representation, without a a real estate agent. Some do OK, many don't. Here are some things to consider: 1.Getting accurate information about homes in the neighborhood that have sold and their accurate prices. Tax Rolls do not indicate whther a Seller Subsidy was part of a price. 2. The Listing agent trying to represent the buyter owes their allegiance to the Seller. 3. Your best interests come first will be the mottos of your Buyers Agent and that is something the FSBO and the Listing Agent can never promise you. 4. If dealing with a FSBO can you be sure that the Seller is giving you all of the correct forms you need to make contingencies enforcable and so if you decide to get out of the transaction so that you will not wind up in court. 5. Are you seeing all of the properties you want to see or need to in order to make wise decisions. 6. Information gives you an edge in contract negotiations and can you get everything you need on random internet sites? 7. Knowledge of the neighborhoods, etc., and future development? Have you taken the time to learn everything you need to know about an area, city or school and have you explored all available resources to make up your mind? Your Realtor will assist in getting you to the right sites and all of the information you may need.
to be continued.......

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