Greenspan's Thoughts  

Alan Greenspan issued bearish comments about the U.S. housing industry recently, saying that "prices of homes will continue to go down" until housing inventory starts to shrink.

The former Federal Reserve Board chairman, speaking at an investment conference in Bermuda, said "we're nowhere near" the point where inventories of new homes are set to drop, noting that home builders continue to discount new homes and add other inducements to try to cut their inventory.

During the housing boom, new-home builders were like the hosts with the hottest invitation in town.  They could raise prices with every newly opened phase of a development and display a "take it or leave it" attitude toward buyers.  Now, amid the downturn, homebuilders are the hosts everyone avoids.  In July, new-home sales nationwide were down 10% from the previous year, and the National Association of Home Builders expects them to continue falling until the second half of 2008.

Builders generally don't advertise price cuts, except for quick-move-in properties, lest they scare off nervous buyers and antagonize current owners who bought at higher prices. The closer builders are to finishing a development, the more likely they are to discount prices, either directly or through upgrades.

On a more upbeat note, Greenspan said that while the recent surge in oil prices is clearly having a "significant impact" on the economy, he has mixed feelings because the climb in prices is "forcing us to break our addiction to oil" at a time when the world is getting closer to the point where it is becoming harder to extract oil around the globe.

Repeating his recent comments, Greenspan said the odds of a recession are less than 50 percent, but higher than they were earlier this year.

What are your thoughts about what Greenspan says about the housing industry and the economy in general?  Leave us your comment below.  Note that an email address is required to comment, but we respect your privacy and your email address will NOT appear with your comment.

Why Now is the Best Time to Buy Roswell Real Estate  

Anyone who picks up a newspaper, or switches on the nightly news sees all of the gloom and doom surrounding the real estate industry.  No matter where you turn, it's all around like a dense fog with no end in sight.  U.S. foreclosure levels are at all time highs and the glut of available homes on the market increases daily.  With each passing month, adjustable mortgages claim additional victims and add them to the heap of homeowners facing foreclosure.  Mortgage companies are failing and large lending institutions are forced to write off defaulted loans by the truckload. 

Throw in the concerns over the domestic economy and interest rates and you have the ingredients for that ugly word — "Recession."   In some areas, homes that were once going for $150,000 or more can be had for less than $100,000 now.  Banks are practically giving properties away if you know where to find them.   

Why are they doing this?  It's simple, think of the current real estate market like a game of musical chairs.  Every lender is trying to off load their properties before the music stops.  There are only so many people willing to pickup these properties and inevitably someone is going to be left without a chair.  Banks are in the business of lending money, not holding onto property.  Every dollar tied up in a piece of real estate is a dollar that can't be put into the capital markets to earn a return.  Shareholders don't like to see non-performing assets on the balance sheet at the end of the quarter or more importantly the fiscal year end. 

They don't care if the bank has taken a loss from the sale of a non-performing asset.  As much as it doesn't make sense to the majority of people, this is the standard that banks are held to.  Therefore, these banks have every incentive to get whatever funds they can for the houses that they have foreclosed on.  

To learn more about why now is the best time to purchase real estate, give us a call, or drop us an email, or better yet, leave us a comment below and we'll get back to you.  Don't worry, even though your email address is needed for your comment to go through our system, we are set up so your email address will NOT display on our site along with your comment… so feel free to post, and confident that your privacy will be maintained.

Home Builders vs Home Buyers in Roswell

The National Association of Home Builders reports that the confidence of United States homebuilders in the market for new single-family homes fell in October to its lowest levels since the series began in Jan. 1985.  The reason: continuing problems in the mortgage market, large inventories of unsold units, and the perceived effect of negative media on potential buyers.  

NAHB Chief Economist David Seiders said in a statement recently that "consumers are still trying to get the best deals they can and many may have unrealistic expectations as to prices for new homes as well as what they can get for their existing homes.  

The good news Seiders said is that builders expect sales conditions to remain stable in the next six months instead of decline further.  NAHB’s housing forecast indicates the second half of the year will show significant improvement.   Federal Reserve Chairman Ben Bernanke said recently that the weak housing market will be a “significant drag” on economic growth into next year.   What do you think?  We'd love to hear your opinion on the future of the real estate market.  Leave us your comment below.

Staging Your Home

With the number of homes for sale out numbering the amount of home buyers, your home needs to be clearly the better choice and priced competitively with the competition.  You should think about the home for sale next door and making sure it doesn't shine brighter than yours.

Your home needs to appeal to all the senses of potential home buyers.  Proper staging will help it to stand out from the crowd and get it sold.

Staging doesn't just mean minor repairs, remodeling or getting rid of the clutter.  It means making your home appeal to visitors, feel inviting and comfortable.  Proper staging can help achieve good results.

Staging itself may cost you several hundred to several thousand dollars depending on many factors.  It is a short term investment in the sale of your home which can help it sell faster and for top dollar.  Proper staging is vital to selling your home.

The techniques for staging your home vary.  Many times it is a simple process that only takes a couple days.  Remove unnecessary items that clutter your home to create space and create an open feel.  Move furniture or replace it to create themes that are welcoming to prospective home buyers.  Open blinds, add brighter light bulbs, paint, clean the carpet, prune bushes and play soft music for showings.

Staging needs to be evaluated on an individual basis, but it's critical in selling your home in a shorter time for top dollar.

Have you ever staged a home for sale?  Leave us your comment and experience and any other things you might suggest to someone who is thinking of selling their home.  Just click the comment link below.

Choosing a Moving Company

Here are some tips to help avoid the pitfalls of making the wrong choice when it comes to moving, whether it's locally, or across the country.

1. Is the moving company known to you, either through past experience or recommendation/reputation?
2. Have you seen their vehicles and do they and the occupants present a good image?
3. Have you seen the Company's premises and do they have adequate security? (Particularly important if your possessions are to be stored either short or long term).
4. Does the company have any recognized quality standards such as ISO or FAIM?
5. Does the company have sufficient resources to handle your move, or will they sub-contract part or all of it? (Beware of Brokers!)
6. Does the company belong to any recognized association whose criteria include meaningful requirements for membership?
7. If you're moving Internationally have you been informed of what shipping line your move has been scheduled on, the vessel's ETA, and whether transhipment is involved?
8. Have you been given details of the destination agent who will be responsible for clearance and delivery of your shipment?
9. Are you satisfied the insurance coverage offered is comprehensive and underwritten by a reputable Insurer?

If there is a moving company tip that we've overlooked, we welcome your added comments by using the comment link below.