August 30th, 2009 by Scott
We are a long way from the residential real estate market being anywhere near fixed. Last week our lenders announced an increase in the minimum credit score for government backed FHA loans. One branch of the government says we will do everything possible to clean up the RE market while another makes it increasingly tougher for buyers to buy the inventory that is a clog in the RE recovery. This said we still are in the quagmire grasping for good news that would indicate a recovery. As in the old saying the light at the end of the tunnel may be a train.
Commercial RE seems to be headed for the same pit residential markets are hung in. this weekend there are two articles that bring to the forefront some problems that don’t look good for the market.
The Wall Street Journal has this article.
Seems that the delinquency and tightening of the credit in commercial markets is steering the ship into the same storms that residential markets are in.
Yahoo Finance has this article.
Meltdown 101: Why banks’ struggles have worsened
This second round may spell disaster for more banks and financial lenders, and investors. Fear and uncertainty in the financial markets have frozen them from making moves to right the economic mess.
bank failure, bank owned real estate, cmbs, commercial loan delinquency, commercial real estate, FHA, foreclosures, home sales, New York Times, real estate investing, real estate market, toxic assets, Wall Street Journal, Yahoo Finance
March 18th, 2009 by Scott
Long has been the winter of our discontent. Well maybe things are changing. An article by Michael Kanell and Kevin Duffy in the Atlanta Journal-Constitution reports a 22% rise in new home starts. The activity was centered around multifamily construction but also saw a rise in single family homes. Discussions with several Realtors I have had in the Atlanta area shows some promise.
Chip Ivie is a realtor with Keller Williams Metro Atlanta and he is guardedly optimistic, “Spring is always the top selling season and this year is showing a spring thaw in activity, but we will have to see activity carry through summer to start thinking things are turning around.” Chip says, “The old advice is still the best, be priced right for the market, and make sure the home shows excellent, there are too many homes for sell and you have to make sure your’s stands out.”
Investors are beginning to asorb some of the foreclosures and distressed properties. On one hand this helps reduce inventory but on the other short or distressed sales prices drive down appraisals in the area. Investors are also facing problems with finding funding for purchase and rehabs of these properties which is leaving cash as king.
You can find the AJC article at http://www.ajc.com/business/content/business/stories/2009/03/17/housing_starts_atlanta.html
Scott
atlanta, bank owned real estate, Chip Ivie, home buyers, home prices, home sales, home sellers, real estate investing, real estate market, scott farmer, shortsales, toxic assets
