The national home sales are on the skids…with sales plummiting are prices to follow?

(PRWEB) October 13, 2006 — Is the $10 trillion housing market ready to collapse?

On September 2 the National Association of Realtor reported that new home sales had plummeted 21% compared to last year at this time, and unsold home inventories soared as prices keep coming down.

Over the last five years home prices have skyrocketed and new home construction has kept pace. “The deceleration has been the fastest in history,” says MarketWatch. Has the day of reckoning come, is the real estate market in for a total collapse, or is it just in for a “soft landing” that most of the market optomist have hoped for?

With most developers cutting back on construction as overproduction have left them with big inventories of unsold homes, plummiting home prices and lower interest rates might bring a flurry of new buyer which might just temporarally relieve the pain.

Housing is a multiplier industry, the impact of the growing real estate crisis impact is felt into many other industries that depend on it. Financial instatutions, lumber manufacturers, furniture stores, cunstruction related work, and other are dependent on this “economic bubble”, which is the biggest in history.

Will its collapse recreate the same resecion of 1929, or is it just a bunch of hype? We dont know just yet.

One thing is for sure, the artificailly priced market of 2005 is finally getting back to reality and if you have any plans on buying a home, now is the time to do it. Prices are comming back to reality, interest rates are dropping, and good deals are abundent.

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Press Contact: Jesse Tacoronte
Company Name: JESSEJAMES SCHOOL OF REAL ESTATE
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As the real estate market continues to slow across the country, the number of sellers attempting to handle the selling process themselves is growing. Rather than paying a traditional 6% listing commission, many sellers are choosing to purchase unbundled services from flat fee brokers.

St. Louis, Missouri (PRWEB) October 13, 2006 — The real estate market is predicted to continue its slowdown, which means tough times for real estate owners who are currently trying to sell their homes. A surprising number of sellers are turning to a new type of Real Estate Company.

Flat fee brokers, who charge a flat fee for unbundled services, have become popular with sellers who want to sell the home themselves without paying the traditional commission.

Traditionally, brokers have charged sellers six to seven percent of the home’s sales price. A typical seller can pay up to $14,000 to a real estate broker to sell a $200,000 home. Flat fee brokers on the other hand offer a menu of individual services. The most popular service with the “For Sale By Owners” is the flat fee MLS listing. For a few hundred dollars the seller can advertise their home on MLS, the same place a traditional broker would advertise their home.

“Sellers are sick of paying outrageous commissions”, says Donnye Sommerville, of Midwest Eagle, Realtors, “The unbundling of the real estate industry is important now more than ever, since many sellers don’t have enough equity in their home to pay a traditional broker. ”

Mr. Sommerville says that traditional real estate companies are resisting the changes in the industry. “They steal our signs and destroy our marketing materials” he says, “They hate that we offer the MLS for less than what they can offer”. He adds “Most traditional agents provide valuable service and have nothing to worry about, but if all they can offer a client is the MLS for tens of thousands of dollars, then they should consider a different career.”

The number of flat fee brokers has started to grow rapidly since the FTC began putting pressure on local MLS boards to allow competition to exist between flat fee and traditional brokers. “There are a dozen flat fee brokers in almost every major market.” says Frank Van Bree, of soldbyme.com, a website developed to assist the do-it-yourself home seller. He says “Besides giving sellers a place to list their home for free, the site provides a directory of flat fee brokers around the country and the list is growing at an alarming rate”.

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Press Contact: Greg Abel
Company Name: SoldByMe.com
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Website: www.soldbyme.com

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A forcast of both the mortgage and real estate markets based on widely availible statistical data and calculated speculation from professionals in the field.

(PRWEB) September 18, 2006 — As interest rates plummeted in early 2001, the real estate market began an ascent where appreciation rates exceeded 100% over the course of five years, and the initial value of new homes sold at record highs.

Now, in September 2006, where the median home in the U.S. costs approximately $227,500, up from $139,700 in 2001, the market is coming back to equilibrium. In fact with the real estate speculators dumping their investments, builders constructing massive developments on speculation, and interest rates cooling, the market has again become conducive to buyers.

Interest rates are now driving up the monthly mortgage cost on adjustable rate mortgages, the typical finance method investors use to purchase rental properties, ultimately increasing the cost of rent nationally by 5.3% just this year (double that of last year’s increase). Just as the market swayed in favor of the buyer, there is no assurance of how long the environment will stay positive.

The above statistics are becoming increasingly more available and publicized. Investors with ARM mortgages are deciding whether to get out from under their investment, or better yet fix their rate with a refinance and keep their investment working for them. Those considering the purchase of a new home are walking into an enormous home inventory as well as the last days of the low interest rate mortgage.

With the unusually large number of unsold homes lingering on the market, homeowners attempting to sell are becoming increasingly more willing to negotiate their selling price. David Bayer, president of PersonalHomeLoanMortgages.com suggests “If you’re looking to refinance and stabilize your mortgage rate, or if this is your first time buying, now is the time to act.” “The current real estate market is overcompensating to the large housing inventory; self correction is only a matter of time.” Advice to consider given that his company is now the leader in regionalized lender searches, radically transforming the way mortgages are brokered.

Resources like drastically increase buyers’ confidence. The site provides specific information on mortgage fees, how APRs are specific to each buyer, and ultimately facilitates the buyer-lender match process. The site naviscreens, finding a prescreened lender within your vicinity. Naviscreening increases your priority as a name and face to a local lender, drastically reducing the likelihood of fraudulent behavior characterized by distanced transactions. Local lenders also have a better pulse on your area’s market. They are familiar with regional concerns; relating better to buyers, and are more likely to consider individual circumstances. This revolutionary naviscreen system is timely, accurate, and site specific. For this tool and other great mortgage advice, come explore PersonalHomeLoanMortgages.com

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Press Contact: Emily Ferreira, Marketing Coordinator
Company Name: PERSONALHOMELOANMORTGAGES.COM
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Knowing the warning signs of foreclosure are the first steps in preventing it from happening to you. Florida-based foreclosure mitigation specialists “Law & Associates’ points out potential warning signs — valuable tips can give vulnerable home owners an edge.

Clearwater, FL (PRWEB) September 11, 2006 — The dramatic rise in home prices has been accompanied by a sharp reduction in the size of down payments made by cash-strapped buyers, a trend that could set off a spike in future foreclosures. www.lawandassociates.org New research shows homebuyers who bought houses in the first half of 2005 put less than 5% down on the purchase price, up 30.6% since 2000. According to a recent study released recently by SMR Research, a Hackettstown, NJ firm that tracks mortgage debt, nearly half (49.9%) of buyers put less than 10% down, an increase of 44.8% since 2000.

“Being on the offensive and being aware of the warning signs of foreclose gives every homeowner an added edge in vulnerable times,” said Richard Boyle of Law & Associates, www.lawandassociates.org specializes in out-of-court resolutions of mortgage While Law & and Associates are not attorneys, they counsel on behalf of who find themselves in a variety of situations. “When you are afraid of losing your home, having a spokesperson who knows how to negotiate with lenders is important. It shifts the power balance in favor of the homeowner who is trying to find options that will save their home, Boyle added, “Being aware of the signs of impending foreclosure, though, is one of the first steps of prevention.”

Warning Signs of Foreclosure:

1: Are you behind on your mortgage payments? Falling behind on a mortgage for any reason: such as a sudden decreases in income due to the loss of spouse or job, poor financial management which contributes to nonpayment of utility bills, service shutoffs and liens against the property; failure to perform necessary repairs and maintenance which make the property uninhabitable; second mortgage scams which make impossible demands on the homeowner’s limited resources.

2:Do you owe more than your house is worth? The risk of foreclosures rises when borrowers take out loans in excess of 80% of a home’s purchase price. Statistics suggest that many homebuyers are stretching their budgets well beyond their means. The risk is that recent buyers have such minuscule equity in their homes that if prices fall, they could owe more on their mortgage than their homes are worth. Could your home be worth less than what you owe?

3: Do you have a Piggy Back Loan (exotic loan) hedging on the fact property values will increase?” Based on increasing property values exotic loans such as interest-only loans and adjustable-rate mortgages provide borrowers with a lower monthly payment for a short period of time can create big problems.” says Dean Baker, co-director at the Center for Economic and Policy Research.

All of these contributing factors can be addressed if homeowners contact skilled advocates in time for them to defend the homeowner before foreclosure starts. Please contact Law and Associates at 800-329-9973 — or visit www.lawandassociates.org

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Press Contact: Blaire Fanning
Company Name: CLASSIFIED ADS PLUS
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Quarterly report examines national data and market trends; Finds that investments in foreclosure market kept national inventory rates in check.

Boca Raton, FL (PRWEB) September 8, 2006 — The Foreclosure Economic Advisory Council (FEAC) today announced the availability of its second Quarterly Report for 2006, which reveals that new foreclosure rates ended the quarter at the same rate as the end of Q1.

The balance in inventory is attributed to investments in the market taking place while new foreclosures continued to increase throughout the county. In fact, California, New England, Nevada and Texas all experienced a spike in foreclosures.

The data also predicts that foreclosures will continue to increase significantly by the end of the year as a result of home price appreciation rates returning to single digits, the increasing inventory of available homes for sale and high interest rates.

In the report, which examines national and regional data compiled by Foreclosure.com from April to June 2006, FEAC member Dr. Jim Gaines — a research economist at Texas A & M University — analyzes the current environment by noting:

” … unlike past experiences when high foreclosures levels were primarily driven by national, regional or local economic contractions, the recent phenomenon is more directly linked to unprecedented mortgage terms and aggressive lending practices.”

The report also includes additional commentary from FEAC members regarding factors that could have a significant impact on the economy and housing market in the future. The following FEAC members are available to expand on commentary related to the report:

• Jim Gaines, Ph.D. — Research Economist, Texas A&M University
• Brad Geisen — President and CEO, Foreclosure.com
• Glenn Gromann, Esq. — Partner, Smith & Gromann, P.A.
• Michael Hardiman, CPM, CCIM, CSM — President and CEO, National Home Management Solutions
• Wanda A. Alexander — CEO, Horizon Consulting, Inc.

For specific data, to obtain a copy of the report or to speak with a FEAC member regarding trends, please contact Jocelyn Jara at (305) 520-9030.

About the Foreclosure Economic Advisory Council:
The Foreclosure Economic Advisory Council (FEAC) analyzes national foreclosure trends to better support the goal of sustainable homeownership. The not-for-profit organization is comprised of real estate experts who examine national foreclosure data to develop an understanding of its causes. The FEAC will publish reports each quarter that review the recent United States foreclosure market, provide graphical representation of foreclosure “hot spots,” and analyze quarterly data. On the Web: www.feaconline.org.

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Press Contact: Thomas Myers
Company Name: The Foreclosure Economic Advisory Council (FEAC)
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More Information: http://www.prweb.com//releases/2006/9/prweb433890.htm