New Rules for Mortgages

The banks, the government, and realtors: they have all seen their share of blame for the collapse of the housing market. Yet Dale Robyn Siegel, author of The New Rules for Mortgages, is convinced homebuyers must also acknowledge their share of the responsibility to avoid a repeat of their mistakes for future buyers. Certainly there are those who have found themselves in extenuating circumstances. However, Siegel explains the reality is buyers walk into this significant investment with hardly the preparation they need.

“If you put me in front of congress to report how to mitigate a future housing crisis, I would say there is one solution,” Siegel claims. “That’s education.  There is now mandatory education for mortgage loan officers, which is great. However, every home owner must also be educated about the process, benefits and risks of owning a home.”

With lures of tax credits and “fire sale prices,” many are taking the bait to make the same significant investment 2.8 million people were foreclosed on in 2009. “One positive short term affect of the global financial chaos we are experiencing today is lower interest rates,” Siegel points out. However, the dazzle does not change the fact that buying a home is a major long term financial commitment requiring preparation. For the financial health and sanity of homebuyers, as well as that of the nation, Siegel stresses mandatory education, diligence and patience.
Here are steps she advises become standard procedure for all potential or current homeowners: Read more

Home Sales on the Upswing

“Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”   Lawrence Yun, NAR chief economist.

Hamptons’ Real Estate Sales Jump 141.8%

Hamptons‘ Real Estate Sales Jump 141.8% Year-Over-Year in Q-1, Says New Prudential Douglas Elliman Report

According to Manhattan-based Prudential Douglas Elliman’s latest Hamptons and North Fork market reports, there were 486 sales in the first quarter, 141.8% more than the 201 sales of the prior year quarter, but 13.8% below the 564 sales in the prior quarter, which was a two-year high. The last three quarters of sales activity has been consistent with the quarterly average of the past 5 years. Gains in the financial markets, Higher Wall Street compensation, low mortgage rates and improved affordability have stimulated demand. Despite economic turmoil of the past two years, the East End housing market, which is driven by its second home market, has continued to keep pace with the New York City housing market. Although there were sharp gains in the number of sales, up from levels not seen in at least six years, listing inventory rose. There were 2,318 listings, up 1.3% from 2,289 listings in the same period last year and up 7.4% from 2,159 listings in the prior quarter. Re-sale shadow inventory, which consists of listings that were removed from the market in the prior year due to unfavorable market conditions, is being added to the current market. The recent inventory increase is consistent with a seasonal pattern of a rising number of listings after the first of the year as sellers anticipate higher demand in the spring. As a result of a rising number of sales and stable inventory, the rate of absorption–the number of months to sell off existing inventory at the current pace of sales–was 14.3 months, down from 34.2 months in the same period last year and slightly above the 13.1 month absorption rate of the past four years.

More:

http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-the-hamptons-real-estate-sales-prudential-douglas-elliman-dottie-herman-luxury-home-sales-in-the-hamptons-2416.php

Recovery

Housing To Rise

The Housing Market Hits the Bottom http://www.huliq.com/4745/81119/housing-market-hits-bottom

According to Real Estate Professionals and most of the major indices, the beleaguered housing market has finally hit the bottom or is only weeks away from being at the bottom of the market.

The mood in the Real Estate Industry seems to be on an uptrend. A recent survey conducted by HomeGain.com showed that almost half of Real Estate Agents who took part in the survey expect home prices to stop falling and begin increasing in the next six months. The majority of these Agents (85 percent) said that the homes in their areas had dropped in value in the last twelve months. However, the last couple of months they have definitely seen an increase in activity and sales.

Distressed Real Estate entrepreneur – Sam Zell – agrees with the survey. He is forecasting that the housing market will bottom out this summer because the drop in building is starting to impact supply. Zell recently said that “the U.S. will recover and recover first around the world because we have a culture and we have an environment where we face up to reality quickly and effectively.”

Related articles

• Sam Zell calls bottom for residential real estate, says GM is done (dailyfinance.com)
• U.S. housing may be nearing bottom: Case-Shiller index (financialpost.com)