RealEstate1

Some real estate agents are benefiting from the recent real estate distress.  Are you one of them? 

In a recent CNN report, David Mc Ilvaine is.  He has benefited by selling homes that have gone through foreclosure and the banks holding them are looking to sell them.  He’s making a profit from those borrowers who lost their homes.

In an industry where the housing market is struggling and many real estate agents are bailing out, could this be the best route to take to do well?

The key to many of the real estate agents who stay in the business is being able to specializes.  For Mr. Mc Ilvaine, for example, the foreclosure market is his specialization.  In a time of housing problems, this could be the only option for some agents to stay in the game.

In the real estate sector, the number of homes on the market is a direct relation to the strength of the market.  A good amount of inventory is important, but when the housing market begins to see a large inventory, which it has over the last twelve months, it takes longer to sell a home and prices are likely to drop.

In recent information released, there is evidence that the huge housing inventory may be dropping some, as a small decline was seen in some major metropolitan areas in the month of May. Total property listings in 29 metro areas dropped 0.3 percent from the beginning of the month.

According to the National Association of Realtors, the number of homes on the market is a supply large enough to last 10.7 months at the current rate of sale.  This is the highest inventory level since 1985.

This was reported by the Wall Street Journal.  You can read more about the facts and figures at the article, Housing Supply Declined in May.

In a fantastic story done by The Wall Street Journal, the facts are laid out.  To sell your home, you have to have the right selling price.  The market across the country is a buyer’s market, driven by pricing. Home buyers are looking for a deal, not other aspects.

Homes that do not get on the buyer’s “showing cut” as the article referred to it as, are those that potential home buyers do not feel are worth the cost of gas to visit.  Often, these homes are overpriced.  If you are not getting any showings, your price is likely the problem.   For those that are getting shows, but not offers, the problem is still overpricing, though you are closer to the right price than others.

In the article, Mr. Golden, who is a Chicago based real estate broker, says, “Historical data isn’t quite so powerful anymore.  You have to look at what is selling now, and what it is selling for.” 

Real estate listings are popping up wildly, but the key way to sell your home is to list at the right price.

As reported in Mlive.com, a Michigan area news program, real estate property listings are not a lost cause. The economy and the housing market in Michigan is one of the worst, yet, that does not mean that there is no movement in the market at all.

Homes sales are still happening, and home buying hasn’t been forgotten about, it is just at a slower pace right now. Housing prices have dipped considerably, though.  In Michigan, one of the largest factors in home prices falling is the number of foreclosure property being sold far below its expected level.

A closer look at the statistics of home sales in Michigan’s Muskegon County, for example, shows that home sales are down over the average from the last three years, and the sale price of homes is lower, the historical average in th number of homes selling is at an average level.

There, the average price of a home in the last 12 months was $102,913, and 36 months ago, it was $109,403. 

In the world of real estate, the competition is fierce, but not just in the housing market.  With the limited number of home buyers out there, and the highest inventory on the market in years, there is no doubt that real estate agents are competing for the limited business out there.  In order to stand apart from the real, some estate agents are now taking on home staging.

Home staging can be learned through a number of professional schools, such as the Staged Homes.  Can such a service be beneficial to the struggling agent?  In some situations, it is.  It helps the agents give something more to their troubled home sellers in the hopes of selling homes faster.  The current real estate agent has to do everything and anything to actually give their clients the resources to sell their homes faster and home staging is one of the most popular options.

Real estate agents aren’t staying in the cutthroat industry any longer.  Real estate schools, which often offered multiple classes to accommodate demand, are now having trouble filling their seats.  Why is this happening?  The housing market, of course, is behind the problem.

As recent news reports displayed this week, the number of jobs in the United States has turned heavily downward in the past weeks.  Real estate agents seem to be one of the many that are hurting.  As reported by the Arizona Central Newspaper, there was a 25 percent increase in the number of license holders in the state that no longer are practicing in the real estate industry.

Similar problems are happening around the country.  With the United States job market suffering so badly, and the housing market fueling it, this recent information about real estate agents really isn’t surprising.

There is something to be said about the foreclosure market, but investors need to be aware of all the risks, concerns and overall worry out there.  The housing market seems to be slowly trudging along with inventories higher than they have been in decades.  One thing is for sure, the number of foreclosures have grown increasingly.  If you are considering investing in a foreclosure, you have to know your stuff.

·         Be sure the value of the property is high enough (well over what you are paying) so you can turn a profit.

·         Find out what’s happening in that market, not just the area, but the city.

·         Visit your property.  One mistake many foreclosure investors are making is buying based on paper. 

Foreclosure properties are highly acceptable in terms of financing and profit, as long as you take the time to find the more profitable one out there.

While we hear a lot about the residential housing market prices falling, most commercial areas haven’t been hit, until now.  The latest information out of Moody’s report, as reported by the Associated Press, is that the commercial real estate sector has fallen by more than two percent in the month of March.

The problem for many commercial real estate developers and investors is that it has become increasingly difficult for people to borrow money for commercial or residential investment.  Lenders have tightened their lending belt, making it more difficult than ever for people to get in. 

The good news, though, is that the commercial real estate prices haven’t fallen below last year’s numbers.  They are still up 0.9 percent over the year before.

In a recent story by CNN, Barbara Harvey who is a 67-year-old mother of three grown children is forced to sleep in her car every night in a specifically designed lot for the homeless.  She lost her home a few months ago to foreclosure.  She, along with her two dogs, live in the small Hondo sports utility vehicle. 

Her story is a typical one in many areas of California, (she is from Santa Barbara) where the middle class are being forced to live on the streets without the ability to afford a small apartment.  Senior citizens and families with younger children are doing the same as she is.  In fact, there are 12 just lots specifically designed for such situations which open up at 7pm and close at 7am the next day.

California has been the poster child for the housing market crash where many people were forced out of their homes when their adjustable rate mortgages adjusted. 

In news released on Home Depot’s 1st quarter profits doesn’t look good.  Who is at fault?  According to the latest reports, the problem is in the housing market.  Profits for Home Depot were reported to be 66 percent lower in the first quarter.

Such news is very overwhelming to the company, yet it said that it was “more comfortable” in its low end predictions for the rest of the year.  Shares of the company dropped 5.9 percent in the afternoon trading session after reports were issued.

70 percent of Home Depot’s sales come from the homeowners, while 30 percent are from professionals including contractors.  This shows that many people are not putting money into their homes, for free of the declining property values there.  Big ticket items like kitchen remodels and appliances aren’t moving off the shelves.

The housing market, it seems has been able to affect much more than the buying and selling of property.