Are You Living a Financial Fairy Tale?
Once upon a time, there lived a red-blooded American who was taught to study, work hard and save money in order to succeed. Assured that health, wealth and happiness would soon follow he set out to earn his way in the world with a blushing bride and bouncing baby by his side.
On the path to progress he found it increasingly more difficult to accommodate the ever changing workforce but thanks to modern machinery, his blushing bride was able to join him in the work force while leaving the baby with relatives. Their combined income was sufficient to take an annual vacation, send junior to summer camp and still have enough remaining for a few luxuries now and then.
But alas, all was not well in the land of the red, white and blue. Each year taxes took more of the combined household income while the cost of living continued to rise. The “tax free” date moved from March to April and eventually to the end of May before the average American began to earn money that would not go toward paying taxes. The husband and wife worked harder than ever as they were forced to become more productive and do the job that used to take two or even three workers. Left to his own, Junior skipped school, didn’t do his homework and routinely got into trouble. The once happy household was left tired, tense and terrified of their financial future….but why? Simple. They failed to understand the changes taking place in the world around them.
Find out if you are living a financial fairy tale or truly understand the economic reality surrounding you and your family with these simple questions:
1. Do you have more than one source of income that is not based upon working for a living?
2. Are you financially dependent upon two or more people in the household earning an income in order to pay your basic bills and set aside funds for investing?
3. Do you regularly sit down and calculate the tax consequences of working over-time, accepting a promotion or other “wage increase”.
4. Are you properly positioned for defensive economic earnings should the government increase taxation or withholding on benefits like health insurance, 401k or other long term investments?
5. Do you regularly calculate the cost of inflation five, ten and even twenty years into the future when establishing your savings and investment goals?
6. Are you hedged against liability, lawsuits and the threat of loss for both your personal and private investments?
7. Do you understand the “need for speed” when it comes to investing in tough times? Remember, the time value of money changes...make sure your investment methodology does too.
Short sales can help you achieve financial self-sufficiency without working yourself into an early grave. It’s one of the last remaining avenues available to average Americans searching for sensible investments in uncertain times.
Tuesday, September 22, 2009
Monday, September 21, 2009
New Home for Sale!! 145K Everything New!!!
This home has it all! If interested contact me directly to schedule showing!
Features: 3 Bedroom / 2 Bath, 1400 Square feet. All new throughout, with upgraded Cabinets, High End Carpet, Tile accents in both Kitchen and Bathroom. Stainless Steel Appliances, high effeciency Washer and Dryer, the works. This home will cashflow from the beginning, 100% Financing available.
This will sell in less than a week so intrested buyers need to have there offers in today!!
Features: 3 Bedroom / 2 Bath, 1400 Square feet. All new throughout, with upgraded Cabinets, High End Carpet, Tile accents in both Kitchen and Bathroom. Stainless Steel Appliances, high effeciency Washer and Dryer, the works. This home will cashflow from the beginning, 100% Financing available.
This will sell in less than a week so intrested buyers need to have there offers in today!!
Monday Morning Heads up and thoughts to keep my salaried monkeys at the bank happy!
Time
Ticking away the moments that make up a dull day
You fritter and waste the hours in an off-hand way
Kicking around on a piece of ground in your home town
Waiting for someone or something to show you the way
Tired of lying in the sunshine staying home to watch the rain
You are young and life is long and there is time to kill today
And then one day you find ten years have got behind you
No one told you when to run, you missed the starting gun
And you run and you run to catch up with the sun, but its sinking
And racing around to come up behind you again
The sun is the same in the relative way, but you’re older
Shorter of breath and one day closer to death
Pink Floyd
Stop & Ask…Are You More Wealthy Today than Yesterday? What about a year ago? Do you have more time and money? How are you really doing in this race we call life?
According to a Census report released a few weeks ago, most Americans are not better off than they were a few years ago…in fact, the median family income fell by over $2,000 annually.
What’s even worse, this news reflects census data from 2007 – the most recent data the government has compiled. Stop and allow this to sink in a bit; median household income actually fell by $2,000 during a relatively steady and prosperous economic era. Once you factor in inflation, the number was even worse…bringing the typical family down to pre-1998 levels. Just imagine what is taking place after the recent rise in unemployment, downsizing and other cut-backs.
Here are a few relevant facts every short sale investor should keep in mind:
U.S. GDP shrank well over 2% while unemployment races toward double-digits.
The median household income – not adjusted for inflation – fell to $50,300 in 2007 and is expected to drop substantially more once data for the current economic downturn becomes fully available.
Over 13% of Americans lived in poverty by 2008...a point higher than during 2007 and expected to climb substantially during 2009. For those fortunate souls that don’t know what the official poverty level is...hold on to your hat; it’s a mere $22,025 per year for a family of four! Yes, you read that right…for a family of four persons.
Should you fall on tough times, what type of help can you expect to receive from your good old Uncle Sam? Maybe $400 in unemployment benefits for a few months but even those will be reduced by any amount you make by working. Ditto goes for food or other forms of assistance assuming you can even qualify. The simple truth of the matter is that many people fail to “qualify” for any form of assistance even during a desperate downturn in their own personal financial situation.
On the other hand, my real estate investors never need to worry about a government sponsored safety net or jumping hoops trying to get by on meager subsidy payments because they have created their own source of income via real estate. Whether buying to hold for the long term or flipping for a fast profit, my investment projects have generated substantial income potential far above and beyond that of the typical American family. Case in point, the average rent for a 3 bedroom home is $820 per month or $9820 per year. Just five paid in full properties could generate nearly enough rental income to equal the median household income exclusive of price appreciation. Better yet, that same income does not require getting up five days a week to spend most of your time in a cubicle or other 9 to 5 grind plus provides distinct tax advantages.
Take stock of how you are spending your time…it is productive and leading to the creation of real wealth that allows you sufficient time and income to enjoy life or are you merely getting by while growing older, broke and one day closer to death?
Why wait any longer when you have finally found the source of inspiration and information capable of showing you a new and better way? Try it and see for yourself or fall in line behind the rest of the crowd seeking solace from their own quiet desperation.
Ticking away the moments that make up a dull day
You fritter and waste the hours in an off-hand way
Kicking around on a piece of ground in your home town
Waiting for someone or something to show you the way
Tired of lying in the sunshine staying home to watch the rain
You are young and life is long and there is time to kill today
And then one day you find ten years have got behind you
No one told you when to run, you missed the starting gun
And you run and you run to catch up with the sun, but its sinking
And racing around to come up behind you again
The sun is the same in the relative way, but you’re older
Shorter of breath and one day closer to death
Pink Floyd
Stop & Ask…Are You More Wealthy Today than Yesterday? What about a year ago? Do you have more time and money? How are you really doing in this race we call life?
According to a Census report released a few weeks ago, most Americans are not better off than they were a few years ago…in fact, the median family income fell by over $2,000 annually.
What’s even worse, this news reflects census data from 2007 – the most recent data the government has compiled. Stop and allow this to sink in a bit; median household income actually fell by $2,000 during a relatively steady and prosperous economic era. Once you factor in inflation, the number was even worse…bringing the typical family down to pre-1998 levels. Just imagine what is taking place after the recent rise in unemployment, downsizing and other cut-backs.
Here are a few relevant facts every short sale investor should keep in mind:
U.S. GDP shrank well over 2% while unemployment races toward double-digits.
The median household income – not adjusted for inflation – fell to $50,300 in 2007 and is expected to drop substantially more once data for the current economic downturn becomes fully available.
Over 13% of Americans lived in poverty by 2008...a point higher than during 2007 and expected to climb substantially during 2009. For those fortunate souls that don’t know what the official poverty level is...hold on to your hat; it’s a mere $22,025 per year for a family of four! Yes, you read that right…for a family of four persons.
Should you fall on tough times, what type of help can you expect to receive from your good old Uncle Sam? Maybe $400 in unemployment benefits for a few months but even those will be reduced by any amount you make by working. Ditto goes for food or other forms of assistance assuming you can even qualify. The simple truth of the matter is that many people fail to “qualify” for any form of assistance even during a desperate downturn in their own personal financial situation.
On the other hand, my real estate investors never need to worry about a government sponsored safety net or jumping hoops trying to get by on meager subsidy payments because they have created their own source of income via real estate. Whether buying to hold for the long term or flipping for a fast profit, my investment projects have generated substantial income potential far above and beyond that of the typical American family. Case in point, the average rent for a 3 bedroom home is $820 per month or $9820 per year. Just five paid in full properties could generate nearly enough rental income to equal the median household income exclusive of price appreciation. Better yet, that same income does not require getting up five days a week to spend most of your time in a cubicle or other 9 to 5 grind plus provides distinct tax advantages.
Take stock of how you are spending your time…it is productive and leading to the creation of real wealth that allows you sufficient time and income to enjoy life or are you merely getting by while growing older, broke and one day closer to death?
Why wait any longer when you have finally found the source of inspiration and information capable of showing you a new and better way? Try it and see for yourself or fall in line behind the rest of the crowd seeking solace from their own quiet desperation.
Sunday, September 20, 2009
Real Loan Modifications That Work!! Don't Waste Your Time With Anyone But Me!!
Tens of thousands of homeowners who were hoping for lower payments are discovering that lenders roll late fees, back taxes or other costs into the principal, sometimes turning a difficult payment into an impossible one. That’s one reason many reworked mortgages are sliding back into default.Monthly payments, on loans modified from Jan. 1, 2008, through March 31, 2009, increased on 27% and were left unchanged on an additional 27.5% according to a recent report by banking regulators. Many modified mortgages fall delinquent (25% to 40%), depending on the type of mortgage.
It's too early to know if this pattern will continue under the Obama administration's $75 billion initiative to get lenders to reduce monthly payments for homeowners struggling to make their mortgages.
A total of 360,165 mortgage modifications are now in a three-month trial period under the government's plan announced in March. But the initiative focuses on reducing interest rates rather than cutting principal. "Payments have [either] gone up [or] the payment relief can last for the first few years and then go up (again)," says Alan White, assistant professor of law at the Valparaiso University School of Law in Valparaiso, Ind.
FDIC details mortgage payment reductions
Yesterday I mentioned an “urging” by the Federal Deposit Insurance Corporation (FDIC) directed at its loss-share partner institutions to consider temporary mortgage payment reductions for unemployed borrowers. A spokesman for the FDIC offered further clarification: “Servicers may provide the borrower with at least six months of payment relief…The term [of] forbearance may vary based on the borrower’s circumstance.” The program reaches out to both the unemployed and the underemployed, and applies to borrowers who suffer a reduction in household income due to decreased hours, loss of job, or a qualifying pay cut. Acquirers of failed insured institutions who agree to a loss-share arrangement must abide by the FDIC Mortgage Loan Modification program for any assets purchased from the failed bank.
The program provides loan modifications by reducing the borrower’s monthly housing debt to income ration (DTI ratio) to no more than 31%. “The FDIC has a loss share monitoring program responsible for surveillance and compliance monitoring of the assets covered in the shared-loss agreement,” the spokesperson said. “In this oversight capacity the FDIC will review loss share servicers forbearance policies and ensure compliance with the shared-loss agreement.”
GAO looks at alternatives to Fannie Mae and Freddie Mac
The Government Accountability Office (GAO) is scrutinizing some of the proposed alternatives to Fannie Mae and Freddie Mac, now both in conservatorship. The alternatives include reconstituting the GSEs as for-profit corporations with government sponsorship and additional restrictions. According to the GAO, this option would effectively add controls to minimize risk in the system; eliminate or reduce the GSEs’ mortgage portfolios; establish executive compensation limits; and completely convert the GSEs from shareholder-owned corporations to lender-owned firms.
This model is not entirely without risk, however, as investors might be unwilling to invest capital in reconstituted enterprises unless the Treasury Department assumed responsibility for losses incurred during their conservatorship, GAO said. “Continuing the enterprises as GSEs could present significant safety and soundness concerns as well as systemic risks to the financial system,” GAO said in the report. “In particular, the potential that the enterprises would enjoy explicit federal guarantees of their financial obligations, rather than the implied guarantees of the past, might serve as incentives for them to engage in risky business practices to meet profitability objectives.”
For Those of You That Can Afford Your House, Here Is How I will Help.
Everything Handled By Attorney’s
New Federal Program Guidelines for
Loan Modifications**:
Home owners are allowed to modify their home loans only once.
With Federal Subsidies the mortgage payment may not exceed 31% of household income.
Interest rates maybe as low as 5%.
Length of loan term may be extended to 40 years.
Loan must have been made before January 2, 2007.
New Federal Program will end December 2012.
Federal Government will provide an incentive for making your mortgage payments on time.
** Information obtained from the Untied States Treasury Department.
Take a few minutes. Give us a call. We will analyze your case and pre-qualify you for a loan modification free of charge.
As low as $ 2500
mn.equityproject@gmail.com
Modified mortgages still defaulting
--
Sincerely,
Adam
Founder
mn.equityproject@gmail.com
952-479-7582
http://adamaboroughs.blogspot.com
" No one changes Anything, without risking Everything"
It's too early to know if this pattern will continue under the Obama administration's $75 billion initiative to get lenders to reduce monthly payments for homeowners struggling to make their mortgages.
A total of 360,165 mortgage modifications are now in a three-month trial period under the government's plan announced in March. But the initiative focuses on reducing interest rates rather than cutting principal. "Payments have [either] gone up [or] the payment relief can last for the first few years and then go up (again)," says Alan White, assistant professor of law at the Valparaiso University School of Law in Valparaiso, Ind.
FDIC details mortgage payment reductions
Yesterday I mentioned an “urging” by the Federal Deposit Insurance Corporation (FDIC) directed at its loss-share partner institutions to consider temporary mortgage payment reductions for unemployed borrowers. A spokesman for the FDIC offered further clarification: “Servicers may provide the borrower with at least six months of payment relief…The term [of] forbearance may vary based on the borrower’s circumstance.” The program reaches out to both the unemployed and the underemployed, and applies to borrowers who suffer a reduction in household income due to decreased hours, loss of job, or a qualifying pay cut. Acquirers of failed insured institutions who agree to a loss-share arrangement must abide by the FDIC Mortgage Loan Modification program for any assets purchased from the failed bank.
The program provides loan modifications by reducing the borrower’s monthly housing debt to income ration (DTI ratio) to no more than 31%. “The FDIC has a loss share monitoring program responsible for surveillance and compliance monitoring of the assets covered in the shared-loss agreement,” the spokesperson said. “In this oversight capacity the FDIC will review loss share servicers forbearance policies and ensure compliance with the shared-loss agreement.”
GAO looks at alternatives to Fannie Mae and Freddie Mac
The Government Accountability Office (GAO) is scrutinizing some of the proposed alternatives to Fannie Mae and Freddie Mac, now both in conservatorship. The alternatives include reconstituting the GSEs as for-profit corporations with government sponsorship and additional restrictions. According to the GAO, this option would effectively add controls to minimize risk in the system; eliminate or reduce the GSEs’ mortgage portfolios; establish executive compensation limits; and completely convert the GSEs from shareholder-owned corporations to lender-owned firms.
This model is not entirely without risk, however, as investors might be unwilling to invest capital in reconstituted enterprises unless the Treasury Department assumed responsibility for losses incurred during their conservatorship, GAO said. “Continuing the enterprises as GSEs could present significant safety and soundness concerns as well as systemic risks to the financial system,” GAO said in the report. “In particular, the potential that the enterprises would enjoy explicit federal guarantees of their financial obligations, rather than the implied guarantees of the past, might serve as incentives for them to engage in risky business practices to meet profitability objectives.”
For Those of You That Can Afford Your House, Here Is How I will Help.
Everything Handled By Attorney’s
New Federal Program Guidelines for
Loan Modifications**:
Home owners are allowed to modify their home loans only once.
With Federal Subsidies the mortgage payment may not exceed 31% of household income.
Interest rates maybe as low as 5%.
Length of loan term may be extended to 40 years.
Loan must have been made before January 2, 2007.
New Federal Program will end December 2012.
Federal Government will provide an incentive for making your mortgage payments on time.
** Information obtained from the Untied States Treasury Department.
Take a few minutes. Give us a call. We will analyze your case and pre-qualify you for a loan modification free of charge.
As low as $ 2500
mn.equityproject@gmail.com
Modified mortgages still defaulting
--
Sincerely,
Adam
Founder
mn.equityproject@gmail.com
952-479-7582
http://adamaboroughs.blogspot.com
" No one changes Anything, without risking Everything"
Saturday, September 19, 2009
It's Saturday Morning, I just watched the News and The lies motivated me to update my Blogg!!
I've heard it all.
But the 3 biggest whoppers keep coming back, over and over again.
#1: The recession is over. (Ha,Ha,Ha)
Right. We believe the media about as much as we do the politicians. It isn't over with unemployment numbers still piling up, new bodies on the heap every week. And foreclosures still hitting record highs (no, "slowing slightly" doesn't count - they're still growing every day!).
#2: The stock market's recovering. (If that is what they call recovering, I am sure glad I don't buy Stock)
If so, it's the worst "recovery" in history. Stock markets in China and Europe are delivering up to SIX DOLLARS IN PROFIT for every ONE ours is!
Why? Our economy still has tons of bad subprime loans, thanks for all the greedy politicians and bankers.
Other economies may be saddled with dunderhead politicos too, but not subprime defaults. Our stock market is limping along like an anemic bum in the gutter, looking for bottles to turn in for change.
#3: Foreclosures are down. (if your an idiot that buys this, get off my Blog now!)
What a spin-job that was! We simply threw a few less houses on the bonfire this month than last. Does that mean there are less? No!
In fact, if you compare it with the same month of the previous year( check realtytrac), when the economy was crashing big-time, the rate is UP 18% this year!
If you search out media stories in the Great Depression,they also constantly broad casted "recovery is just around the corner."
For 8 miserable years.
Look, you can actually make a ton of cash in these bad times and the worse ones to come. Truth is, there are more millionaires made in recessions than any other times. The main reason being, when things fall apart, there are smart people (like me, our my partners) positioned to pick them up...
But the 3 biggest whoppers keep coming back, over and over again.
#1: The recession is over. (Ha,Ha,Ha)
Right. We believe the media about as much as we do the politicians. It isn't over with unemployment numbers still piling up, new bodies on the heap every week. And foreclosures still hitting record highs (no, "slowing slightly" doesn't count - they're still growing every day!).
#2: The stock market's recovering. (If that is what they call recovering, I am sure glad I don't buy Stock)
If so, it's the worst "recovery" in history. Stock markets in China and Europe are delivering up to SIX DOLLARS IN PROFIT for every ONE ours is!
Why? Our economy still has tons of bad subprime loans, thanks for all the greedy politicians and bankers.
Other economies may be saddled with dunderhead politicos too, but not subprime defaults. Our stock market is limping along like an anemic bum in the gutter, looking for bottles to turn in for change.
#3: Foreclosures are down. (if your an idiot that buys this, get off my Blog now!)
What a spin-job that was! We simply threw a few less houses on the bonfire this month than last. Does that mean there are less? No!
In fact, if you compare it with the same month of the previous year( check realtytrac), when the economy was crashing big-time, the rate is UP 18% this year!
If you search out media stories in the Great Depression,they also constantly broad casted "recovery is just around the corner."
For 8 miserable years.
Look, you can actually make a ton of cash in these bad times and the worse ones to come. Truth is, there are more millionaires made in recessions than any other times. The main reason being, when things fall apart, there are smart people (like me, our my partners) positioned to pick them up...
Thursday, August 13, 2009
At a closing Yesterday I was asked what difference a few years will make? From a real estate professional !!! I laughed myself out of the chair....
What Difference Does a Few Years Really Make?
For those that are young enough not to clearly remember the early 70's (I wasn't born untill 1974) a quick trip down memory lane can serve an important purpose...it demonstrates what a difference a few years can make and why it is important to find passive sources of income early in life.
Bill Downey, an expert in commodities, recently published a quick spotlight that focused on prices as of August 15, 1971...just a few days short of 29 years from today.
Average cost of a new house was $25,250 versus $190,000 today (from a high of over $260,000 just two years ago). If you had purchased ten average priced BRAND NEW homes (with a mortgage payment of less than $275 each!), rented them out and allowed the mortgage to cover the expenses, today you would hold nearly $2 million dollars of real estate free and clear...and still be able to collect rents for as long as desired!
Average annual income was $10,600 versus $38,000 today. Notice, earning power has not kept pace with inflation. In fact, experts agree the average worker has lost purchasing power each and every year for nearly 30 years.
Average monthly rent $150 versus $820 today. Of course, rents for brand new homes would have been higher but imagine, even with a "high" mortgage of $275 for each house, you would still generate more monthly income from ten houses than the average employee working full-time...before paying off the mortgages!
Those of you who are older, take just a few minutes to imagine how different your life would be today if you had purchased a few average little homes 29 years ago. If you don't have at least 2 million dollars sitting safely in a retirement account while continuing to generate a monthly income, ask yourself why? On the other hand, those of you who are young should consider this...the United States entered a period of high inflation and rapidly escalating prices in the late 70's and early 80's yet it dwarfs the amount of spending taking place in the past six months of the current economic decline.
Money creation expands the supply of money and eventually leads to inflationary pressures - to date, that has been adjusted and dealt with but experts agree, the amount of new money creation currently in existence is unlike any in the history of the United States. If you make one investment in life then simply allow it to pay for itself, it could easily create a retirement income or source of revenue for you and your children well into the future....even as unemployment and actual wages shrink.
Anyone that had the foresight to invest in real estate during the early 70's would enjoy an additional $5,000 to $6,000 per month while having access to nearly $2 million dollars in their real estate portfolio. Instead, most Americans trusted their hard earned dollars to 401k accounts, savings bonds and other "trusted" sources that have left them high and dry when they needed it most. Here is a simple recipe for success...buy now, allow it to pay for itself and forget you even own it then reap the rewards in your old age. It's a time tested method that has led millions of average Americans just like you down the road to wealth. Consider this...the federal deficit is an estimated 2 Trillion for this year alone...with trillion dollar deficits projected for the next decade!
See you at the top!
For those that are young enough not to clearly remember the early 70's (I wasn't born untill 1974) a quick trip down memory lane can serve an important purpose...it demonstrates what a difference a few years can make and why it is important to find passive sources of income early in life.
Bill Downey, an expert in commodities, recently published a quick spotlight that focused on prices as of August 15, 1971...just a few days short of 29 years from today.
Average cost of a new house was $25,250 versus $190,000 today (from a high of over $260,000 just two years ago). If you had purchased ten average priced BRAND NEW homes (with a mortgage payment of less than $275 each!), rented them out and allowed the mortgage to cover the expenses, today you would hold nearly $2 million dollars of real estate free and clear...and still be able to collect rents for as long as desired!
Average annual income was $10,600 versus $38,000 today. Notice, earning power has not kept pace with inflation. In fact, experts agree the average worker has lost purchasing power each and every year for nearly 30 years.
Average monthly rent $150 versus $820 today. Of course, rents for brand new homes would have been higher but imagine, even with a "high" mortgage of $275 for each house, you would still generate more monthly income from ten houses than the average employee working full-time...before paying off the mortgages!
Those of you who are older, take just a few minutes to imagine how different your life would be today if you had purchased a few average little homes 29 years ago. If you don't have at least 2 million dollars sitting safely in a retirement account while continuing to generate a monthly income, ask yourself why? On the other hand, those of you who are young should consider this...the United States entered a period of high inflation and rapidly escalating prices in the late 70's and early 80's yet it dwarfs the amount of spending taking place in the past six months of the current economic decline.
Money creation expands the supply of money and eventually leads to inflationary pressures - to date, that has been adjusted and dealt with but experts agree, the amount of new money creation currently in existence is unlike any in the history of the United States. If you make one investment in life then simply allow it to pay for itself, it could easily create a retirement income or source of revenue for you and your children well into the future....even as unemployment and actual wages shrink.
Anyone that had the foresight to invest in real estate during the early 70's would enjoy an additional $5,000 to $6,000 per month while having access to nearly $2 million dollars in their real estate portfolio. Instead, most Americans trusted their hard earned dollars to 401k accounts, savings bonds and other "trusted" sources that have left them high and dry when they needed it most. Here is a simple recipe for success...buy now, allow it to pay for itself and forget you even own it then reap the rewards in your old age. It's a time tested method that has led millions of average Americans just like you down the road to wealth. Consider this...the federal deficit is an estimated 2 Trillion for this year alone...with trillion dollar deficits projected for the next decade!
See you at the top!
Wednesday, August 5, 2009
The real deal on Bank owned Homes, REAL NUMBERS FOR REAL THOUGHTS!! Can anyone say SHADOW Inventory?
I had an interesting conversation today with my realtor in regards to homes marked TNAS (temporarily not available for show) and the real number of foreclosures really out there.
I see things for what they are and if someone asks me why I will explain to them WHY! There are tremendous amounts of bank owned homes saturating the market in eveyones neighborhood, I do not care what state you are in.
It is simple economics and psychology, if the general public really knew the numbers and the media told the truth, people would panic.
So instead of my own thoughts I have compiled a few brief statements from chief economist at Wells Fargo Securities, Zillow and Deutch Bank. Please read below
Housing inventory drops in July from a month earlier! Wow the market is recovering (Ha hahahahahah)
According to data compiled by ZipRealty, inventory of homes -- single-family homes, condominiums and town houses listed on local multiple-listing services -- in 28 major metropolitan areas dropped 2.5% in July from a month earlier. The inventory in July dropped 27% year-over-year.
The figures compiled by ZipRealty may not present the exact level of supply since half of foreclosed homes are not included on multiple-listing services at any given time on account of such homes awaiting repairs or being subject to litigation. Analysts say that the housing market is showing signs of stabilization, but a large supply of unsold homes could hit market recovery.
"The number of homes listed officially on the market, while still at historically high levels, might be only the tip of the iceberg," said Stan Humphries, chief economist at Zillow.com.
Adam York, economist at Wells Fargo Securities, says that the number of homes that have not been listed for sale could be around 5 million. "That is still an extremely high number," said York. "Supply is and will continue to be one of the main obstacles to a housing market recovery in the year ahead."
Torsten Slok, senior economist at Deutsche Bank, says that foreclosures are creating a "shadow" inventory and "had it not been for foreclosures then the housing market would probably have recovered."
I see things for what they are and if someone asks me why I will explain to them WHY! There are tremendous amounts of bank owned homes saturating the market in eveyones neighborhood, I do not care what state you are in.
It is simple economics and psychology, if the general public really knew the numbers and the media told the truth, people would panic.
So instead of my own thoughts I have compiled a few brief statements from chief economist at Wells Fargo Securities, Zillow and Deutch Bank. Please read below
Housing inventory drops in July from a month earlier! Wow the market is recovering (Ha hahahahahah)
According to data compiled by ZipRealty, inventory of homes -- single-family homes, condominiums and town houses listed on local multiple-listing services -- in 28 major metropolitan areas dropped 2.5% in July from a month earlier. The inventory in July dropped 27% year-over-year.
The figures compiled by ZipRealty may not present the exact level of supply since half of foreclosed homes are not included on multiple-listing services at any given time on account of such homes awaiting repairs or being subject to litigation. Analysts say that the housing market is showing signs of stabilization, but a large supply of unsold homes could hit market recovery.
"The number of homes listed officially on the market, while still at historically high levels, might be only the tip of the iceberg," said Stan Humphries, chief economist at Zillow.com.
Adam York, economist at Wells Fargo Securities, says that the number of homes that have not been listed for sale could be around 5 million. "That is still an extremely high number," said York. "Supply is and will continue to be one of the main obstacles to a housing market recovery in the year ahead."
Torsten Slok, senior economist at Deutsche Bank, says that foreclosures are creating a "shadow" inventory and "had it not been for foreclosures then the housing market would probably have recovered."
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