Monday, April 10, 2006

Real Estate News for Monday, April 10th, 2006

Los Angeles Foreclosures Increase Dramatically in the First Quarter Of 2006, According to Default Research. The number of foreclosures in Los Angeles County increased by 63 percent in the first quarter of 2006 compared to 2005, according to Default Research (www.defaultresearch.com), the rapidly growing real estate research company for foreclosure properties. "With rising interest rates, the economy slowing down in that part of California, and a quarter of L.A. residents working at jobs that do not pay a living wage, the significant increase in foreclosures is a very alarming trend in the largest county in the nation," said Serdar Bankaci, president and chief executive officer of Default Research, Inc. "The rising foreclosures are due to the 'average Joe' buying a house he cannot afford because of inflated home prices. Then, with the rising interest rates, he cannot pay for the mortgage," said Bankaci. "Many of the homeowners used 'aggressive financing' to buy homes they could not afford." Click here to read more.

You can't keep U.S. economy down. Strength, diversity allow it to reinvent itself repeatedly. The sheer strength and diversity the world's biggest economy is displaying makes Canada's rag-tag collection of oil rigs, nickel mines and banks look like a lemonade stand by comparison. An overwrought housing market may be hanging over the United States like a thundercloud, its two great car companies may be teetering on the brink of bankruptcy and its shoppers may have frittered away their last dollar of home equity but, man, that economy sure knows how to reinvent itself. For sure, the housing boom, which has driven growth for the past several years, seems to be fading as home sales and prices sink. It will also likely cause problems for the wider economy. By some estimates, housing and all jobs connected with it, such as real estate and legal, have been the source of 40% of all job creation since the 2001 recession, not to mention a steady stream of cash from home equity withdrawal -- a huge US$900-billion last year. But the United States is not all about housing. "We're going through a very significant transition -- away from housing and consumer spending -- towards corporate investment and exports, travel and tourism," Mr. Cochrane said. Click here to read more.

Bubble? What Bubble? Part 1: Midwest remains wallflower in nation's housing dance. Though experts are divided over what the next 90 days may bring for the housing market as a whole, they all agree on one point: Each region of the nation has its own unique set of circumstances, and how those factors shape the attitudes of home buyers and sellers over the next several weeks will also help to decide how local home sales and prices will fare through the rest of this year and beyond. This four-part series looks at regional trends that are emerging as the peak spring home-buying season gets under way. Click here to read more.

Web Sites Take Aim at Real Estate Commissions. Online sites can save money, but there can be other benefits to using a traditional real estate broker. "Brokers do provide good professional advice," he said. "And when you operate in a market where you're not getting as much of that advice, I think you lose something. You have to trade that off against the cost savings." There are laws in 15 states banning outright rebates for the buyers, and there are other states that have certain minimum requirements for what constitutes a legitimate selling agent. But elsewhere, experts say people interested in pursuing the online discount route should be the type of person that does their own homework. After all, there won't be a realtor coming by with flyers for the front door, yard signs for the front lawn or baked cookies to help a seller's kitchen "show" well. Click here to read more.

California Real Estate Agents Learn Strategies to Help Homeowners Avoid Foreclosure. Real estate agents are arming themselves with tools that will help them help their clients avoid foreclosure. By enlisting a strategy known as the short sale, a property in pre-foreclosure with negative equity, agents and brokers across the nation are studying up on how to negotiate with mortgage lenders when their clients are in over their head. In a traditional listing, Realtors™ help their clients list, market, and sell their home to a buyer. In the case of a short sale transaction, the agent or broker not only lists, markets and sells the home, but the broker also negotiates directly with the lender to settle the mortgage payoff at a discount of the balance due on the note. “This type of real estate listing is challenging, but also very rewarding because everybody wins in this situation. The bank or lender wins, the buyer wins, the seller wins and the broker who closes the deal wins because the lender pays their commission. I teach Realtors™ how to perfect this important strategy because I think it’s only going to grow as a market sector in the coming years.” Click here to read more.

~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com

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