Residential Real Estate Market - Some Cities Are No Where Near a Recovery

Although, it doesn't look like the United States economy will go into a double dip recession, many might conclude that the residential real estate market actually has already. Normally, when real estate recovers it helps the overall economy recover and thus is one of the economic indicators showing that the recovery is moving forward. Unfortunately, that didn't happen this time, and no new construction jobs were created, as has been the case during past economic recoveries.

California had some counties that were hit extremely hard, for instance Riverside County, which had foreclosure rates that were very near that of South Florida, Las Vegas Area, or Phoenix AZ area. It grew extremely fast, and many people bought new track homes at the top of the market for much more than they could afford to spend, and then with all the job losses, there was no way for them to make their payments. Meanwhile the homes they bought lost 40% in value, some almost 60% if you can believe that.

Not long ago, I talked to an acquaintance who is currently unemployed in Riverside County, but has gone back to school to get a degree so that he can personally financially recover from this tragic economic occurrence. He lives in a very nice suburban community of Marino Valley. When he explained this to me I told him;

"I know Moreno Valley, it's nice there but with the recession, it sure hurt real estate prices there, what a bummer, one of the worst areas hit in the US actually, mostly because it grew so fast, but all those middle class tract-homes they built are very nice, how is the neighborhood now, I worry about the gangs and crime moving in now?"

Indeed, I asked him if it was very bad, with the gangs, violence, and crime. He said there was some crime, but then the very next day I read in the newspaper that a teen aged girl, only 17 years old, was shot in front of a friend's house where she attended a party in that city. She was able to drive her car away, but was bleeding very badly, and started screaming for help in the middle of someone else's neighborhood. They called the paramedics, took her to the hospital, but she died.

It has often been said that the crime rate increases 2.5% for every 1% increase in foreclosures. During this last real estate crash, those numbers did not seem to jive with the past FBI data. However, maybe all of that data is now catching up with this reality. And it still looks as if the residential real estate market in these suburban areas such as Marino Valley may not come close to recovery for at least three years, but most likely five more. That would be over eight years total, just to get back to where things were.

Much of California goes through a ten-year residential real estate cycle for valuations, and it appears that this cycle may be somewhat longer either due to government economic policy, or just the reality of the size of the bubble that burst in late 2008. Indeed hope you will please consider all this and think on it.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes writing 23,777 articles by 7 PM on June 27, 2011 is going to be difficult because all the letters on his keyboard are now worn off now..

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The Housing Market - Changing The Job Description

The real estate and mortgage industry have changed dynamically over the course of the last few years, and will hopefully never return to where it was during the boom of the market that took place a few years ago. Corrupt lending practice, bloated government spending in the secondary market, and irresponsible use of equity is what helped our housing market drop at a rate only rivaled by the Great Depression. From appraising to loan origination, the way businesses in this industry work has been altered to allow for more safe and secure practice.

Personally, I believe that the mortgage side of the real estate market has been affected the most. It is no secret that the indiscretions in the lending side of the market, as well as certain government entities allowing for almost limitless spending, played a big part in the housing bubble. Because of this, lending standards have been tightened, and there is much more due diligence being done on the part of the underwriter before a loan is approved. Also, systems within the lending offices themselves have been adjusted and updated. Believe it or not, many illegitimate foreclosures took place due to lack of communication between departments within lending companies. Much has been done to eliminate these problems, as well as dish out severe punishment for those not complying with federal lending regulations.

Appraisers are also having to alter the way they are conducting business. Many people blame appraisers for what happened in the housing market. Inflated appraised prices (often resulting in monetary kickbacks) on houses is what snowballed into an over priced real estate market. Appraisers are practicing more ethical appraisals, and are not over inflating the prices of homes.

Investors are switching their short term investment strategies into more long term ones. For instance, investors were making a killing by simply purchasing property, and then selling at an elevated price when the market went up. This allowed for more property flipping. Now, with the market maintaining low prices for the last two and a half years, investors are investing their money into long term rental properties that can be sold later on down the line. By purchasing a property and renting it, investors are capitalizing on a society that is calling for more rental properties, and well as setting themselves up in a good position when the market turns around. Real estate investors, however, are constantly altering their investment strategies to adhere to whatever the market is calling for at the time.

Anthony Flores is a real estate, mortgage, and investment consultant in Riverside, Ca. Houses for sale in Yorba Linda are remaining far above the rest in the housing market.  

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Get Success in Real Estate Market by Establishing Good Relation With Hard Money Lender

Hard money lender has a crucial role to play in real estate market. They provide enough capital to the investors and give them ample monetary source to make money in. Money lenders have made it quite easy to access capital for the investors. There are certain parameters that make the lending of hard money feasible. If these parameters are met the investors face no problem in accessing the hard money. But recently, the money lenders have chalked out many requirements that omit quite a number of investors from being qualified of getting money. There are other investment programs that are beneficial for people and are easily accessible. Yet, nothing has hampered the relation between both the parties.

The strong relation between the real estate investors and money lenders is built on trust. The lenders do not require looking at the credit status of the borrowers but only consider the property. Before going for hard money first you have to look for the criteria that will be profitable for you. In some cases, traditional loan is better than hard money and vice versa. When you have finally decided to go for hard money investment it is time for you to look for a lender.

If you look closely at the established investors you will find that they have a back up of a hard money lender. This back up is not gained in a fortnight and one has to work on building good relations with the lender. In real estate business monetary assistance is necessary and one cannot do without it. When you have a good understanding with a money lender you do not have to go here and there asking people to lend you money in critical situations. You can be assured of some amazing deals when you have easy accessibility of investment money. You can make money in real estate easily and smoothly when you have trust on one source from where you can get money anytime you want.

It is quite simple for a newbie to extract money from the lenders after establishing good relation with them. This is better than other real estate investment programs where you have to pay heavy interest and present innumerable documents to be qualified to borrow the money. Here, the hard money lenders do not want countless documents. One has to spend some time with the lenders in order to get a deal. It may take a few weeks or even a month to impress them. Conversation over dinner table or at a coffee shop may prove to be fruitful and will help you to end up with a good deal. Long discussions about the market and the investment will make them reveal some of the tips and tricks which you can apply in your business. So, if you are keen to make money in real estate then you have to go by some strategies. Do not waste your time on hollow investment programs instead spend some time with a hard money lender and you will be benefited.

Josh Blythe is the author of this article on Real Estate Market. Find more information about Real Estate Market here.

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Speculation on the Auckland Property Market

After 5 years of unprecedented boom and the worst 3 years since the Great Depression, everybody is speculating on the Auckland property market. Here is my two-penneth worth:

2011 commenced with a fragile degree of optimism in the Auckland residential property market. Interest rates are low, unemployment numbers, although not necessarily reducing is not getting worse and business confidence levels are gently on the increase.

Prices are holding and in many regions showing healthy increases - albeit at sales levels lower than in more "normal times".

Come April, regions centred on the CBD had a mini boom with both volumes and prices showing healthy growth over any of the preceding 12 months. Causes?

Immigration figures are unchanged with a virtual zero balance in - out. So what caused the growth in the Auckland property market?

One can only assume that there was a spike in demand as people chose to leave Christchurch following major and frequently recurring earthquakes.

Why would Auckland Property have benefited as opposed to other cities or regions? I believe it was a simple pragmatic of employment opportunity - though many in the country may enjoy a love/hate relationship with Auckland, most understand that as the largest commercial and education centre, the opportunities are greater.

Wellington once held an attraction as a place to live, but with the cut backs in the government ranks it is not currently seen as presenting the same opportunity as may have been the case some years ago.

When it comes to residential Auckland property pressure, the ripple is one from the outskirts inwards, rather than from the centre out.

People purchase at the outer circles where prices are more achievable, enabling those selling to purchase towards the centre where transport costs are less and where the modern - European Lifestyle is more evident.

As developers have disappeared off the Auckland property scene those competing for property do so from existing stock rather than from the usual urban sprawl available in better times. Supply is static as demand increases.

Those wealthy or fortunate enough to own property within the city fringe are seeing their equity increasing.

The wealthy are getting wealthier.

And over the winter of 2011?

It is my view that this winter will see the lowest turnover of stock for a decade as the wave of internal migrants has most likely been satisfied.

I believe stock levels in the Auckland property market will be right down with "good" properties selling with exceptional prices, and often with multiple offers presented to the fortunate vendors.

Written by Simon Damerell, co-principal of Ray White Ponsonby Real Estate. Ray White Ponsonby - Ray White Ponsonby in Auckland, New Zealand serves popular Auckland inner-city suburbs. This small, unique and increasingly sought after geographic area offers proximity to the city centre, the harbour and the lifestyle increasingly desired by Aucklanders. http://www.rwponsonby.co.nz/

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