Check out this video on how HVCC affects you and why you need to be aware of it…
https://www.thinkbigworksmall.com/public/showArchiveVideo/3909/4552
Thursday, April 30, 2009
HVCC: Important information regarding Home Values
Wednesday, April 8, 2009
Housing Market Prediction for 2009 and beyond...
Economic guru, Carol Rodoni, predicts several trends for 2009:
1) Foreclosures CA, NV, AZ and FL are going to continue to rise.
2) Investors and first time buyers will continue moving into these areas with high foreclosure rates.
3) Vulture funds out of the east coast are now putting $30K-$40K together; looking at things in the $150-$250K range, targeting a 3-5 year hold with no return, to put them back on the market and sell them once the market has bottomed out.
4) This market creates opportunity in the lower end. People can now buy homes or investment properties for $150K in the San Francisco Bay Area, rent them out for $1100/month and get into a cash flow property.
5) First time Home buyers are entering and will continue to enter the market this year. Affordability index has gone from 9-10% to 20%.
6) Higher price points were the ones that went down 10-15-20%. Areas where a great deal of development occurred went down 20-30-40%. Looking back over the last 30 years the market would typically rise 6-8% per year adjusted for inflation. We hit 2000 and suddenly that escalated to 20% to even 60% in some of those areas that were being built in outlining commuter areas (i.e.
7) After the above occurs, we are likely to see 6-7 months price of stability, not big changes in either direction, then appreciation slowing returning, mild 3-4% at first, then perhaps 5-6%, but nothing like we saw in the housing bubble cycle of 2000-2007.
8) When will the bottom of the market occur? It will happen when we get back to these price points.
9) Real estate is going to become the asset of choice because people are afraid of the stock market. People have seen 40-50% of their wealth dissipate in the past 6 months. The stock market is not going to jump back fast, could take 3-4 years.
10) Underwriting is tough, but those buyers who can do verification of income, with full documentation can get loans. Interest rates are the lowest in 37 years. This is not going to last forever. We will see rates around 7-9% starting at the end of 2010 and by 2011.
11) Lending is opening up, affordability numbers are increasing, and we have a new president motivated to get the economy going. All bodes well for the opportunity for Real Estate
*Notes by Datta Khalsa
Thursday, April 2, 2009
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