Sales Increase a Little
Posted on Created: Wednesday, 30 September 2009 11:45
So, home sales rose again last month.  This is certainly a step in the right direction, but is it really anything to jump up and sing a song about?  Not so much.  Although home sales did rise, they only rose by a meager 0.7 percent, which was far below economists’ expectations.  And these numbers will certainly not get any better after the month of November, when the tax credit for first-time buyers is set to expire.                 The aforementioned tax credit is certainly providing us with a false sense of accomplishment, as it has been directly responsible for almost half a million home purchases, according to some experts.  The question is, how would the real estate market have done if there were no tax credit?  With such a small increase, you would have to imagine that the numbers would have even decreased had the tax credit not been in place.                 But let us not forget the big picture.  Just a short while ago, there was apparen ...
 
Million-Dollar Homes: Back in Business
Posted on Created: Tuesday, 29 September 2009 10:38
A few weeks ago, I wrote an article about how sales of million-dollar homes were hurting just as badly, if not worse, than sales of regular homes. Many of you may have wondered why we should be worrying about which million-dollar homes did sell and didn’t sell when there are thousands of Americans who are living on the streets. Well, the answer to that last concern is that million-dollar home sales are often the best indicators of how an economy is doing. When sales are down, the economy is usually down, and vice versa. As of my previous post, sales of such homes had dropped by almost 50 percent. However, it appears as if sales of these megaliths have slowly started to increase. No wonder: in this day and age, you are getting about 20 percent more bang for your buck, so to speak. And this figure increases with million-dollar homes, for the most part. In one high-price community, a formerly-priced 28 million dollar home can now be bought for a fraction of the price. Other ...
 
Price-Slashing: Win-Lose
Posted on Created: Monday, 28 September 2009 22:32
Homeowners looking to dump off their homes have recently started turning to a particularly damaging tactic- slashing prices.  Why is this so bad?  Well, although your home will inevitably sell if prices are so low, the economy as a whole cannot take a large number of these moves.  If a large number of people start doing this, then the result will be seen in the form of a national home price reduction.  Once that happens, home values are inevitably harmed.                 However, the good news is that this practice is slowing down.  Less and less people are resorting to slashing the prices of their homes in order to make a sale.  And this is not the only good news coming from the housing sector this week, either.  According to recent statistics, unemployment is down this week and new home construction is up.  That indicates that the demand for homes is up, possibly because more and more Americans are able to afford a new home.                 Thi ...
 
New Program News
Posted on Created: Thursday, 24 September 2009 10:09
Many people have criticized President Obama for his failed program designed to help those struggling to make their payments.  The program that he enacted was designed to give struggling homeowners an opportunity to modify their loans in a more cost-effective way to prevent their homes from being foreclosed.  This program didn’t even come close to satisfying the needs of struggling homeowners.                 As a result, the Obama administration instituted a new program last month designed to help those who didn’t qualify for their previous program.  As one month has passed since the inauguration of this new program, it is time to take a look and see how it has been doing.                 In a few words, the new program has severely fallen short of expectations.  The program will only assist about 20 percent of those who ask for help.  It is projected that of the 850,000 people who need the assistance of this new program, only 45,000 will be ass ...
 
Tax Credit Renewal?
Posted on Created: Wednesday, 23 September 2009 11:34
In the past few months, home sales have been spurred by an 8,000 dollar tax credit available for first-time buyers.  Experts agree that the credit alone is responsible for thousands of sales that would not have happened otherwise.  According to one expert, the tax credit has been directly responsible for 400,000 sales since it was instituted.  Now, economists are starting to worry about what will happen to the real estate market once the tax credit expires.                 As of now, the tax credit is set to expire on November 30th.  However, there is much discussion going around about extending the credit for a period of time.  The credit has been responsible for holding America’s head above water and preventing the total collapse of the real estate market, and once November 30th rolls around, some fear that the economy will decline substantially.                 However, extending the tax credit is not a no-brainer.  It has cost the government ...
 
Promising Figures from the Shadows
Posted on Created: Tuesday, 22 September 2009 15:22
Despite all the grim news that has been coming to the forefront of news reports as of late, there is some evidence that the economic crisis that America is in has slowly started to end.  New home construction rose to its highest level in more than 9 months, as 598,000 new units were built.  This was still a little below the expected pace of 600,000 units, but the gain still signifies the largest number of homes built since last November. The increase in new home construction comes as a response to the high demand for homes.  The special 8,000 dollar tax credit that is being given to all first-time home buyers has proven to be a very successful way to increase home purchases.  Although the figures may have risen, the landscape of the economy is not accurately reflected.  True, overall home construction has risen, but that is only due to a boom in apartment construction.  New construction for single-family homes is still down.   Also, home construction levels are still over 60 ...
 
Homeowners Still Being Scammed
Posted on Created: Monday, 21 September 2009 11:47
Scams are abound in the real estate community as more and more companies seek to prey on needy homeowners in search for answers to their mortgage woes.  Federal authorities have cracked down on two companies that falsely presented themselves as government agencies in an attempt to scam homeowners.  The two companies, Nations Housing Modification Center and Infinity Group Services, posed as government agencies designed to help out homeowners with their mortgages, but in actuality all that these companies did was charge homeowners a large sum of money.  They did almost nothing in return.                 This is not a new problem.  The Federal Government has cracked down on 22 such organizations, and the problem continues to compound the recent real estate market crisis.  Homeowners in need are getting squandered out of their hard-earned and much needed money, and it seems as if nothing can stop these companies from attempting to steal the money.            ...
 
 
 

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