What characteristics do the 10 Most Recession-Proof U.S. Cities have in common?
The most recession-proof cities didn’t see home prices surge in the first place, so they didn’t experience a big housing bubble followed by a crash, and their economnies weren’t rooted in the auto industry.
The top 10 stable cities identified by MetroMonitor are:
After years of hearing how home prices are plummeting and foreclosures are mounting, consumers want to feel hopeful about the housing market — but maybe they’re being too optimistic.
In a presentation to the National Association of Real Estate Editors in Austin, Texas, last week, Stan Humphries, Zillow.com’s chief economist, pointed to four myths he said consumers are latching on to as they try to make sense of recent housing statistics.
The four myths:
1.The housing recession is over. It’s not, Humphries said. He estimates the bottom in home prices won’t come until the third quarter, at least from a national perspective. Doug Duncan, chief economist at Fannie Mae and also a speaker at the conference, agreed with that estimation. Note: Realtytrac’s Rick Sharga disagrees…he is estimating that we are well over a year away from any sort of ‘bottoming’ in home values.
2.After markets hit bottom, prices will rebound to boom levels. Not going to happen, at least for a while, Humphries said. “Once we hit bottom, the bottom is going to be a long and flat affair across the markets,” he said. “What we’re going to see once we hit bottom is the second phase of the housing recession… that second phase is one of being flat.” Note: Excellent point that agents need to understand. Once home value depreciation finally levels off..we will experience years of flat or no home value appreciation. Realtors, STOP saying that homes are a great ‘investment’. Speaking in strictly financial terms, homes are NOT a great investment.
3.The worst of the foreclosure mess is behind us. More wishful thinking, according to Humphries. He estimates foreclosures will peak later this year, then remain elevated for a while. Rick Sharga, senior vice president of RealtyTrac, an online marketplace for foreclosure properties, said he doesn’t envision foreclosure activity stabilizing until late 2011.
4.The tax credits saved the housing market. With or without a tax credit, those who bought would have done so anyway, Humphries said. “The biggest impact [in home sales] we believe were low prices… low interest rates and the unsung factor here is the ramped up lending by the Federal Housing Administration.”
I want to acknowledge Realty Trac and Zillow for their contributions.
Having earned the CDPE designation was a great step in a quest to help homeowners facing foreclosure. Recently I added to that designation with the SFR which is the National Association of Realtors course with certification upon passing course materials and exams for those agents interested in working short sales. It stands for Short Sale Foreclosure Resource.
Sellers facing foreclosure deserve representation by knowledgeable agents. The vast majority of agents certainly want to do a good job for a seller in distress. Wanting to do a good job and having specialized training are distinctly different. The details, follow-up and timelines in the foreclosure process are very precise and require specialized training to insure the greatest possibility of success.
An agent would be much better advised to refer short sales to a verifiable short sale specialist, earn a referral and praise from their clients for their help than muddle through an unfamiliar process and possibly end up with less than a favorable result.
I wanted to have a little fun today, so I created a short video with a homemade jingle. Pretty corny, but I had a lot of fun doing it. Hope it puts a “wee” smile on your face.
5 reasons why electronic lockboxes make sense in today’s market:
1. An electronic lockbox system provides an essential part of the marketing strategy to gain feedback and generate showings into offers.
2. Secure controlled access management of property keys. Agents no longer have to worry about who has access to listing keys. Electronic lockboxes strictly limit access to other agents or approved visitors who have gotten a lockbox key/card from the local Association or Board of Realtors. The keys/cards require a code or PIN be entered by the owner in order to access the lockbox.
3. It’s no longer necessary to drive around town to real estate offices picking up and dropping off keys to properties. That time can be better invested gaining more “face time” with clients–or potential clients. With easy access to the keys, you don’t have to arrange time to pick up the keys, or wait for the listing agent to be available to let you into the property. Fewer showings will occur while waiting for the availability of the keys. Having the keys readily accessible at the property saves time for all involved parties.
4. Showing notifications and automated feedback for each property access. The great thing about electronic lockboxes is that they have the ability to record and hold data and every single access is recorded. Not only that, but some systems allow for notifications to be sent to notify the listing agent of an access to their lockbox. Add in the ability of some systems to automatically send an email asking for feedback, and you have a very powerful system working for you.
5. Detailed access reporting. In today’s market, sellers are becoming more intimately involved with the selling process of their home. In addition to having the ability to record entries, electronic lockbox systems also allow for detailed access reporting to clients. You can now give a client data showing how often their house is being shown.
Thanks to our friends at Ris Media for great information.
1. The upfront mortgage insurance premium (UFMIP) will increase to 2.25 % up from 1.75% and FHA will continue to allow the financing of the UFMIP.
2. Borrowers with a credit score below 580 will be required to have at least 10% down payment. Borrowers with credit scores over 580 will remain at 3.5%. FHA will seek legislative authority to increase the annual premium which is now capped at .55 percent. If FHA can increase the annual premium, it may be able to reduce the up-front premium.
3. Seller concessions will be reduced to 3% from 6%.
FHA will make the following lender enforcement changes:
1. FHA will implement credit watch terminations at lender underwriting.
2. A public reporting of a lender’s performance using a scorecard system will be implemented.
3. FHA will implement, using notices and comments, indemnification against lenders. Indemnification will be expanded beyond fraud and misrepresentation.
4. FHA will seek legislative authority to enforce indemnifications against direct endorsed (DE) lenders.
5. FHA will seek legislative authority to sanction lenders nationwide based on performance of local branch.
The FHA is an integral part in continued recovery of the real estate industry and the overall economy. The National Association of Realtors will continue to work with FHA, the current administration and the Congress to ensure the FHA can fulfill its mission while providing for the safety and soundness of the insurance fund. It will be important to balance risk management while creating homeownership opportunities across the US.
How is the market?? Are you a buyer, a seller, an investor or a renter? It is different for each of you.
As a buyer, you are probably wondering, if you should be buying now? Ask yourself the following question. Are the interest rates “true rates” or are they “incentive” rates? It is my opinion they are “incentive” rates to get buyers to purchase. Where are rates headed? There is only one way they are headed and that is higher. When will this happen? Probably the first quarter of 2010. Why will they head higher? There are a couple of reasons. One is the bond market and the other is the weak dollar. What does that mean for you, as a buyer. It means you should probably seriously consider buying at this time.
As a seller, how is the market? Today’s news is that home sales and home prices are rising. How can it be that home sales and home prices are rising when there are so many short-sales? That is exactly why they are rising. Buyers are perceiving short-sales as great values. This is generating multiple offers and the properties are selling for over the listed price as buyers clamor for a “deal.” This is setting new and higher price points, so sellers, knowing that the interest rates are going to rise and a certain percentage of your buyer audience will disappear, it is my opinion you should be realistic about your price and sell. After all, you can go out and find yourself one of those wonderful deals, as a buyer, before they are all gone.
As an investor, you are having a heyday. When have you seen properties in higher end markets cash flow? You just can’t spend your money fast enough. Good for you! Cash is king and, if you have cash……..invest and invest.
What about renters?? Normally in times when foreclosures increase, rental prices increase. As more people need to rent homes the law of supply and demand ususally creates higher rental prices. Well, that is not what I am seeing in the marketplace at this time. In fact, I am seeing a decrease in rents. Landlords, if you have a good tenant, keep that tenant. You may not be able to replace that tenant with a like-paying one. So, how is the market?? It is different for each of you, depending on how you classify yourself.
Sellers-the amount of buyer traffic right now through homes is the most I have seen in 23 years. The buyers are determining that now is the right time to buy. When you look at the combination of rock-bottom prices and historically low interest rates, the buyers are recognizing this opportunity is short-lived. Food for thought for both buyers and sellers, Do you think the interest rates we are now enjoying are true rates or incentive rates? They are incentive rates to encourage the purchase of homes. The prediction is Mortgage rates will rise in the first quarter of 2010, because of the weak dollar. It is the old saying “you know what you have, but you don’t know what you’ll get.” Keep your home on the market.
In this down economy I have learned that all of those THINGS that I used to think I had to have are, after all, just things. Things can be taken from you in an instant. One day you can have all of the things you ever wanted and the next they can all be gone.
In taking personal stock of the situation, I have realized that the things that money can’t buy are the things that are really important. When I look around my world, I am surrounded by the deep love of seven children and four grandchildren, 2 extraordinary sisters, a passel of nieces and nephews, a great aunt, brothers-in-law and a son-in law. I have wonderful friends, some of whom I have known since I was very young. I have the respect of my peers. I was blessed with a great brain and an endless thirst for more knowledge. I have traveled the world, flown on the Concorde, crossed the Panama Canal, learned to speak Spanish and Italian, have no fear of public speaking, love my profession, personally cared for both my parents until the day they each died at home, have helped make the difference in a family of six, have taught my children and grandchildren a slew of board and card games, have a piece of the Berlin wall, have seen the Whirling Dirvishes and ridden a camel. I have truly had an extraordinary life. While the majority of the things may have disappeared, the memories of of a life fulfilled is the greatest gift of all. No one can take my intelligence or break my spirit. I am the eternal optomist and a big dreamer. Oh yes, I can have those things again and I will have the ones I really want, but this time will be different. I will have an appreciation of the real price I am paying to have those things. I know one thing for sure, those things can never replace the priceless gifts life has given me.
Named 2009 "Realtor of the Year", Barbara Amstadter is a name well recognized in the local community. She served as a co-founder of the "Committee of 4000", representing the owners of 4000 leasehold parcels in a legal fight for "leaseholder" rights. She helped negotiate the final monetary settlement, the largest in US history at the time. Continue reading...
Susi brings extensive backgrounds in escrow and new home sales to the 22 year successful partnership of Barbara and Susi. She is, also, a recipient of the 15 year "Legend" award (bestowed on only 3 agents out of 66,000 worldwide at the time). Susi and Barbara have been ranked in the top 1% of realtors internationally year in and year out. Continue Reading...
