THE TRUTH WILL SET YOU FREE

We are approaching that time in our country when the voting booths will be opening again for us Americans to control our own destiny. Professional commentators are all over the map with predictions and there is rarely a shortage of propaganda to support claims that further a political agenda.
Propaganda that espouses “how well” we are doing in the ant farming market can hurt ant farmers who rely upon such faulty information. Propaganda that leads consumers to believe that the housing market is improving right now or in the near future is dangerous and can cause the loss of fortunes.
Experienced Realtors have the means by which to provide Clients with information that exists outside the political arena, the TV, radio, print media or internet. Painting a rosy picture of the housing industry may work in the voting booth for a temporary period of time, but in Real Estate, the truth will set you free indefinitely. Here is the truth:

1. The Housing Market continues to decline. Eighty percent of Contracts to Purchase single family homes go to closing within Sixty days. In order to determine the value of a property, all who work in the industry look backwards to compare prices of those comparable properties that have SOLD. We consistently see that the prices continue to decline.
2. There are indicators that can be used to determine future changes. One of these indicators is a “future contract”. When Realtors and industry related professionals such as bankers and appraisers look at the declining number of contracts that have been written for the purchase of homes in the coming weeks and months, the news is instructive. The number of sales continues to decline as do the prices.
3. The leading economic indicators (LEI) show unemployment stats hovering at 10% and despite some reporting to the contrary, the Stimulus Package has not produced the jobs needed to bolster the housing market.
4. Fannie Mae and Freddie Mac shares fell to their lowest since 1992 and 1994 respectively as reported by Wall Street. The sharp decline is thought to be a direct result of proposed legislation that would require the mortgage giants to raise huge capital sufficient to give a break to homeowners whose loans are too burdensome. When investors get spooked, it becomes more difficult for consumers to obtain a loan to purchase a home.

HERE IS THE GOOD NEWS;

As long as a consumer has a handle on what is true, he/she can move through any market and achieve the optimum outcome possible (most amount of equity out in shortest period of time). If you want to (or have to) sell your home, do not wait. You are living in your own bank and it is shrinking. There is nothing you did to cause it and there is nothing you can do to stop it. You must price your property correctly and it will sell. Every property sells at the right price and time.

Know that if you sell one property and purchase another, you may be among the many consumers who refer to your selling and buying as a “wash”. The market decline is across the board. You do not sell “too low” and buy “to
If you are a buyer, there is hardly a better time than these times to make a purchase. The rates remain historically (or hysterically) low and the banks are doing what they should be doing. They are loaning money to folks who can pay them back.

If you are planning to retire in the near future, downsize and you have a good bank account, you may be among those in the best position to buy. The housing prices will remain low. You can sell your home that has accumulated large equity over the years. You can purchase a home that meets your changing needs for cash or a smaller mortgage thereby ridding you of the burden of higher interest rates.

We are not near the end of this declining market and we who read the signs and practice within the industry every day know it. If you do not understand the economic facts that directly affect your fortune, you will lose money. It is that simple.

This is America, thank goodness. Information is free flowing. Read as much as you can and educate yourselves as much as possible about the Housing Recovery. There has never been a time when Americans failed to rise above any/all adversity. We just need to know the truth and no one makes better decisions collectively than Americans do.